Texas energy is changing but mineral rights still rule.
For more than a century, Texas has been synonymous with oil and gas. Now, it's also leading the nation in renewable energy production, with vast wind farms across the Panhandle and solar fields stretching through West and South Texas.
For lenders, accuracy in a title search is not just a formality, it's a safeguard for your investment. A flawed or incomplete title search introduces unnecessary financial and legal risk, potentially undermining the very foundation of your secured transaction. A title search company should be lender-focused, provide meticulous review and tailored searches to minimize exposure while supporting confident decision-making.
In Texas real estate transactions, understanding and addressing liens and encumbrances is critical for attorneys and loan officers who aim to protect their clients' interests and ensure smooth closings. Unlike many other states, Texas has distinctive property laws, lien priorities and recording practices that can complicate title searches and risk exposure to hidden claims. This article explores the common complexities of liens and encumbrances in Texas and provides actionable guidance tailored specifically to the legal and lending professionals operating in this unique market.
What is Title Research?
Property title searches are typically conducted when real estate is being purchased, sold or leased. It is crucial to understand the chain of ownership on property before any real estate transaction is made. Comprehensive research will uncover information about current and previous owners and if the property can legally be sold or leased. Discovery of any liens, pending lawsuits, unpaid taxes, leases, easements, mortgages or other outstanding issues or restrictions could impact the transfer of ownership. This includes reviewing deeds, divorce cases, county land records, bankruptcy records, probate records and other financial judgments potentially attached to the property. A clear property title search confirms there are no outstanding issues that could crop up after ownership has been transferred.
A traditional title commitment and abstract services are both essential elements in real estate transactions, but they serve different purposes and offer distinct types of information. A title commitment is a formal document provided by a title insurance company that outlines the conditions under which a title insurer will issue a title insurance policy. It includes a legal description of the property, current ownership, and any recorded liens or encumbrances. In contrast, abstract services involve compiling a comprehensive history of the property's title through a detailed examination of public records. While a title commitment offers a forward-looking perspective, focusing on clearing title defects before closing, an abstract service provides a historical review of ownership and encumbrances. Understanding these differences is crucial for buyers and lenders to ensure a smooth and secure transaction.
The topic of mineral rights in Texas is a complex subject with standards and regulations varying from county to county. Mineral rights do not always belong to the actual land property owners. That is very important information which is critical when a client is considering buying or selling a piece of property. Usually mineral rights refer to the deposits of minerals that are static under the ground such as coal, metal ores, stones, sands or salts. Then there are the fluid minerals such as oil and natural gas. Property owners that have mineral rights may sell, lease or donate the rights to individuals or companies. Any mineral interests can be owned by governments, property owners or corporations.
Property title searches are a vital part of purchasing land, commercial property, building or a residential home. Prior to every purchase a title search should be investigated to protect your clients and customers from financial loss or legal battles.
Floods can be completely devastating to communities. The loss of life, property and livelihoods can leave survivors displaced because their homes and businesses are uninhabitable. The financial cost of replacing everything that was swept away is unimaginable.
If you've ever purchased a property, you know how frustrating those last-minute delays can be when your closing date is fast approaching. Often, delays are unavoidable, but there are many times where these delays could have been prevented. According to the National Association of Realtors, 9% of all closing delays are related to issues associated with the title of the property. For this reason, it is a good idea to perform a title search on the property to avoid delays in your closing.
Researching property history, especially Texas property history, can be a daunting task. Amongst Texas's 254 counties, there is a lot of variety in terms of how property records are recorded and archived. One of the first steps to understanding the work we do at Hollerbach & Associates is understanding the basics of each county's record-keeping techniques and documentation. We want our clients to be informed on how to interpret their property history to minimize risk.
At Hollerbach & Associates, when we say that We Know Texas BetterTM, it's more than just a catchy phrase — we mean it. With our large network of Texas professionals and our 35 years of experience in title researching, how could we not? The truth is that Texas's 254 counties, with their broad variety of record-keeping practices, make title research a tricky beast to tackle — and that's why you need a company that knows Texas better.
Effective at midnight on March 24th, Hollerbach & Associates, Inc. will not be accepting visitors at our San Antonio location. We are in compliance with San Antonio Mayor Nirenberg and Bexar County Judge Wolff's "Stay Home, Stay Safe" orders issued on March 23rd requiring limited travel March 25, 2020 through April 9, 2020. However, please be a...
