Frequently Asked Questions


FAQ Index:





  • I own some land that I plan to sell to my son/daughter, but I can’t find my original deed. What do I do?
    Relax. More than likely, your deed was filed in the public records of the County Clerk’s office at the Courthouse. The Abstract and Title Company can easily locate this deed by your name or by the legal description of the property. Your original deed is not needed for transfer unless it has NOT been properly filed and recorded in the public records.

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  • I own some property and want to sell it. Is the land deed the same as my boat and car title? Can I just turn it over and sign the back of the title to transfer it over?
    Nope. A deed to real estate is different than your car or boat title. A new deed must be prepared with all interest owners of the land as grantors (sellers) conveying the property to the grantees (buyers), with the grantors’ signatures properly acknowledged in the presence of a Notary Public, and the deed properly filed and recorded in the Official Public Records of the County Clerk of the county where the property is located.

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  • If this is a title company, can you get me a lost boat title?
    An Abstract and Title Company deals with real estate (land) titles. You will need to obtain a form in the County Tax/Assessor’s office or from Texas Parks and Wildlife Department for your boat.

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  • I want to buy some vacant lots and I don’t want to spend any money on title work. Just give me a deed to the lots, that’s good enough isn’t it?
    What is your definition of good enough? Vacant lots are sometimes vacant for a reason. There may be a cloud on the title or title defects have not been cured for various reasons. What do you plan to do with the property? Are you going to put a $100,000 home on it or do you just want the extra space between you and your neighbor? Buying vacant lots may be a minimal investment initially, but you or your heirs may eventually want to sell or mortgage these lots and if the title is defective, you may spend thousands of dollars in court costs and attorney’s fees to cure the title. It’s happened and it has happened in Sterling County.

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  • So I can have a deed, but my title may have defects? How do I know if the title to my property is defective?
    Always obtain title work when purchasing and selling property. Title insurance is the most widely accepted title product available today. When an order for title insurance is placed with the Title Company, you will receive a Commitment for Title Insurance which will determine if the title is insurable. It will also offer requirements that must be satisfied prior to the closing in addition to exceptions not covered by title insurance. Title insurance will provide insurance against covered title defects in the policy. Another common title product is abstract compilation and an attorney’s title opinion of the Abstract of Title.

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  • I have an Abstract of Title to my land. So I have good title, right?
    Who knows? An Abstract of Title is a compilation of the title documents of public record affecting the title to the subject property. It does not offer, certify, or deliver good title. It merely presents the documents of record in a chronological summary. You must obtain an attorney’s opinion of the title to determine the validity of your title and if any title defects need to be cured prior to closing. So to answer your question, you would need to have your abstract brought up to date and examined by an attorney. The attorney would then give you his or her title opinion and you would need to take care of any requirements stated in their opinion.

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  • If I buy title insurance, will it guarantee I have good title in my property?
    No way. A title insurance policy does not guarantee good title. What sets the standard for “good” title or a “clear” deed? Don’t fall into this word trap, forget the phrase “good” title or “clear” deed. You want assurance that the property you are buying will be yours and only yours, right? A title policy provides coverage for the title that is considered INSURABLE. Title insurance is a contract of indemnity and will protect you from risks and losses caused by faults in title in the past. By purchasing a title insurance policy you are eliminating risks and losses due to title defects. A title search and examination will be preformed before a commitment for title insurance is ever issued to the buyer.

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  • So you’re telling me I can’t get good title anywhere?
    I’m telling you to drop the phrase “good” title. Become an educated consumer and learn what traps to avoid when purchasing real estate. CAVEAT EMPTOR! A Latin phrase for BUYER BEWARE still exists for any consumer. Use the information available to you, the professional advice of your attorney, and the services of your real estate agent for your benefit. Ask questions and read your documents and disclosure notices. Purchase title products like policies or Abstracts of Title/title opinions, to be assured that you are getting what you believe you are purchasing.

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  • I have agreed to sell my property and the buyer says that I must pay for his title insurance. Why do I have to pay for title insurance when I won’t get the benefit of being the insured?
    First, do you really have to pay for the owner’s title insurance? It is customary for the seller to provide the owner’s policy or updated Abstracts of Title, but it is not written in stone. This is generally negotiable. Will it be a deal breaker? Have you considered figuring the title insurance premium and other closing expenses into your sales price before you begin negotiating with your buyer? Second, you are receiving a benefit, although indirectly, by providing your buyer with an owner’s policy. You will not be the policy insured, your buyer will be the insured. However, if a title claim should arise on the title policy, you will have provided your buyer with a title policy and should direct any inquiries to the title agent. You may be asked to execute some curative documents at the title company’s expense, not your expense.

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  • I inherited my mama’s ranch. I need to get a loan to payoff some income taxes and debts by my ex-wife. The bank is requiring me to pay for a loan policy. Is this a normal expense? Why do I have to provide a policy on land that has been in my family for over 50 years?
    You’ve already spoken volumes in title-speak. Family land is passed on from generation to generation by wills, trusts, gift deeds, etc. This involves probate, estate and inheritance taxes, properly executed deeds by all interested parties including court appointed officers, and these are among just a few of the many title concerns. You have also mentioned other title concerns that need to be addressed on your property even though it has been in your family for a long time. Your bank is not making an unusual request. This is a normal expense associated with all real estate loans. The loan policy protects the lender. If there is a fault in title covered by the policy, the lender will be paid for his loss.

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  • Mr. and Mrs. ** are selling their home property and I want to buy it. No real estate agent has been involved. We’ve agreed on a price and the bank said they’ll loan me the money. What do I do now?
    You need to determine if you want to hire an attorney or real estate agent to put your sales contract together. Some real estate agents will perform this service for a fee. All attorney’s charge a fee for this service. You can DIY (do it yourself), fill a contract form out between yourselves but you will need input from your banker. Your banker may require certain closing costs, inspections, surveys, appraisals, title insurance, MIP, etc. and you will need to determine which party pays for which items. Some loans require that the borrower can not pay for certain items. Contracts are legally binding instruments. Once you have a completed contract, you will need to bring the signed contract and any earnest money to the title office. Upon receiving this contract and earnest money, we’ll schedule for title work on the property and open escrow.

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  • I am paying cash for a ranch that I am buying. The Title Company called and gave me the amount for the Cashier’s Check that I need to bring to closing. Why isn’t my personal check good enough? I am offended at this request.
    If you are fortunate enough to pay cash for a large property purchase, the last thing the Title Company wants to do is offend you. If your name is Bill Gates and you are paying cash for a large property purchase, the last thing the Title Company wants to do is offend you. The Title Company, as a licensed title insurance agent operating under the rules and regulations promulgated by the Texas Department of Insurance and in accordance with Procedural Rule P-27 as provided for in Article 9.39 of the Texas Insurance Code, requires that “Good Funds” be received and deposited before a title agent may disburse from its trust fund account. Sterling Title Company requires a Certified Check or Cashier’s Check drawn on a financial institution insured by the FDIC or a wire transfer made payable to Sterling Title Company for the amount due at closing. So yes, everyone (even Billionaire Bill Gates) is required to bring in a Cashier’s Check for amounts over $500. No cash is accepted. We must be able to deposit all funds and then quickly disburse with good funds in this escrow account. Bouncing checks for whatever reason are unacceptable. All escrow accounts are audited by Texas Department of Insurance auditors and by a Certified Public Accountant of our choosing and at our expense every year. These stringent requirements are for everyone’s benefit.

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  • I bought a title policy when I purchased my property. Just what is a Stewart Title Guaranty?
    Sterling Title Company is a title insurance agent for a large title insurance underwriter known as Stewart Title Guaranty Company of Houston, Texas. Stewart Title Guaranty Company is a national underwriter with tremendous financial strength in the national market. Your policy is with Stewart Title Guaranty Company.

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  • I don’t understand why it takes longer than a day to get title work and a deed to some real estate. I want to buy four lots for about $7000 and I’m told the average turn around time is about 4-6 weeks? I can buy me a brand new pickup for $30,000 and I can get a pickup title and loan in less than a day. What’s the deal?
    The deal is that dirt has been around longer than a brand new pickup. Title work on real estate is a tedious, detail-oriented task that involves searching and examining a chain of title for years. Title documentation begins in the mid-1800s for Sterling County lands. Town lots are generally searched from the early 1900s to date, unless a title insurance policy has been previously issued on the same property. Other factors and professionals must be involved, such as getting a property tax search and certificate ordered and the necessary legal documents ordered from the attorney. If a loan is being obtained, the process is then additionally determined by the requirements of the lender being met. A brand new pickup may cost more in dollars but it has no title history, possibility of claims, and not subject to the legal scrutiny like real estate, which will endure long after we are gone. You don’t realize it, but you are really comparing apples to oranges.

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  • I’m buying this house and my lender is requiring a survey. The seller said that you have it on file. Can I have it?
    Let’s back up a bit. Most lenders are requiring surveys on residential purchases now and this practice has been common here, over the last 15 years or so. Some lenders do not require a survey at all. Many cash buyers never purchase a survey. So a “survey file” of all improvements to real estate in Sterling County does not exist in the public records or in the abstract office. If the seller purchased a survey when he bought the property, he should have an original or possibly the surveyor who surveyed the property could reproduce a copy if he desired to accommodate this request. If a survey was required by the lender when your seller bought and mortgaged the property, a copy may exist in the Title Company’s guaranty file IF the title insurance was purchased from this Abstract and Title Company. When a survey copy is in our guaranty files, a copy may be provided upon request. However, a new survey is required for many sales transactions or the addition of new improvements that request survey coverage on the policy.

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  • I’m selling my land and I need my abstracts. I’ll be by this afternoon to pick them up.
    Whoa Nellie! The Abstract Company compiles Abstracts of Title from their records that are maintained on a weekly basis. These records have been maintained from Sovereignty of the Soil or since the beginning of public record keeping for Sterling County lands (mid-1800s). We do not store Abstracts of Title for individuals or companies, since we do not have the facilities or wish to incur the liability for loss. Our business is to create abstracts of title from our records for your individual parcel of land. Compiling abstracts consists of determining which records are applicable, making a copy from the Clerk’s Office of these records, arranging them in chronological or abstract order, indexing and numbering the documents, and producing a caption and certification page. These documents are then bound into a volume for examination by an attorney. The charge for the abstract depends on the number of pages involved. Some land parcels have lengthy title records and some parcels have relatively few records. It depends on what legal documents have been filed on the property for the specific time period to be covered. Over a 140 year period, there may be hundreds or thousands of records posted to your land parcel. If you have Abstracts of Title in your possession and want them updated, you will need to bring them by the Title Company and order a supplemental abstract.

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  • Are you bonded? If I give you an earnest money check for $1500, how do I know that you do not use this money to pay your personal bills or use it to fund your vacation?
    Good question. To answer your question, I’m not interested in doing the time, so I won’t do the crime. As a licensed title agent and licensed escrow officer, I must maintain escrow accounts pursuant to the Texas Department of Insurance rules and regulations and meet the minimum escrow accounting standards set forth by this department. The title agency must maintain a title agent’s license and surety bond and an escrow officer’s license and surety bond. The funds in the escrow account are maintained separately from funds used in the general operating account. The escrow accounts must be audited and a final accounting of all funds held in escrow accounts must be sent to the Department of Insurance annually. The escrow fee that is collected at the closing goes to pay for the administrative expense in maintaining this account for you. The Texas Department of Insurance employs auditors that examine each agency to maintain compliance in all areas of title insurance, with particular emphasis on maintaining integrity of the escrow accounts.

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  • Do you have any forms I can fill out to use for a deed?
    No. I cannot supply you with a form. Some office supply companies sell forms, but they are seldom the correct form with the correct language that you need to use. Order your legal documentation through the Title Company. It will be prepared by an attorney experienced in real estate matters.

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  • Why do you have to get an attorney to prepare the deed?
    The State of Texas prohibits the unauthorized practice of law and the preparation of legal documents is considered practicing law. Sterling Title Company is a closely held corporation. The two major stockholders (one stockholder is the President/Manager/Licensed Escrow Officer) are non-attorneys. One does not have to be an attorney to own a title company, but it is advantageous. Sterling Title Company has access to attorneys who can provide competent legal services at a competitive price. Please be aware the deed must be approved by the Title Company before it can be utilized as an insurable conveyance.

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  • Do you have current blank Real Estate Sales Contracts?
    Yes, we usually have the Texas Real Estate Commission (TREC) forms for your use. Again, as explained in the answer to the previous question above, Sterling Title Company cannot fill out this form for you or give advice since the title agent is not an attorney or a licensed real estate broker/salesman. We keep the forms available for your use when preparing for a sale. If you are not capable of filling the form out, you will need to hire an attorney or licensed real estate professional to complete the offer for you. Please see our Links page for a link to TREC's website and forms.

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  • How do you come up with the title insurance premium amounts?
    Sterling Title Company doesn’t set the premium amount. The schedule of premiums for title insurance are prescribed by the Texas Department of Insurance. I must collect at closing the full premium amount as determined for the policy coverage dollar amount. Please see our Guides page for a link to a PDF of the current premium rates.

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  • When we were ready to close the transaction for purchasing my property, you called me and gave me an amount that I was to bring in for “closing costs.” Do these fees all go to you?
    No. As a closing and settlement agent, the Title Company holds in escrow all funds until the conditions for closing the transaction have been met by all parties as agreed. The Cashier’s Check is made payable to Sterling Title Company (as settlement agent) for the amount you need to bring to closing, which may include your down payment if you are obtaining a loan. This amount is deposited into the escrow account along with the other funds such as the loan principal amount being provided by the lender and your earnest money. To disburse the escrow funds, checks are written to the proper parties involved. For example, the seller will receive his sale proceeds; the lender will receive any funds collected for them; the attorneys, surveyors, appraisers, inspectors, Title Company, recording clerks, etc. will receive checks for services/fees preformed by them. The itemization of these closing costs are included on the Settlement Statement or HUD-1 that you signed at closing. The Title Company wears two hats at closing in that they provide the settlement services and also provide the title products. A Title Company may also pay for costs incurred on behalf of the parties such as tax certificates, courier fees, recording fees, copies, etc. and will be reimbursed at closing for these costs in addition to the title premiums or abstract fees, etc. So yes, the Cashier’s Check may be payable to the Title Company, but no, the whole amount seldom goes to pay only the Title Company for their services.

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  • I don’t want the IRS to know about me selling this property. Just give me my sale proceeds in cash.
    Sorry. The Title Company must give your sale proceeds by escrow check to show that you were properly paid for your sale. We must also report this sale on a 1099-S form for the reporting year period that the property was sold. You will be asked to furnish the proper TAX ID number or your social security number for this reporting purpose. Some sales are tax exempt for reporting purposes and you will be asked to fill out the proper certification form if your sale is exempt. There are substantial penalties/imprisonment for the reporting entity and the taxpayer not complying with this law.

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  • I thought I paid property taxes at closing, but I received a statement from the Tax Assessor/Collector for the total amount of taxes. I’m confused.
    Property taxes are one of the most misunderstood items dealt with at closing. Don’t be afraid to ask the settlement agent to clarify the tax matter if you do not understand. Many people assume that the current property taxes are due one year in advance. Property taxes are due in October for the current year. If it is the year 2000, taxes for the year 2000 are due in October 2000 and are delinquent in February 2001. Under normal procedures, the Title Company will handle your taxes in the following manner:

    If your closing is before the month of October, the taxes will be prorated from 1/1/2000 through the date of closing. The seller will have his portion of taxes deducted from his funds that he will receive at closing. This portion is then credited or added to the funds that are being paid for on the buyer’s behalf. The buyer has then received the dollar amount of the seller’s portion of taxes for the year. At the year’s end, the buyer will receive his tax statement and will pay the entire tax bill.

    If your closing is after the month of September, the Title Company will collect the seller’s portion of taxes (1/1/2000 to closing) and the buyer's portion of taxes (closing thru the end of the year), and all taxes due will be paid directly to the Tax Assessor/Collector Office for the current year.

    Generally, the Title Company will always prorate taxes at closing, unless instructions indicate otherwise. Please be aware that some other settlement agents, like lending institutions, private attorneys or do-it-yourselfers may not address the tax proration matter. Delinquent tax checks are necessary to protect the buyer from being liable for delinquent taxes. Property taxes follow the property, not the owner.

    Your lender may require you to escrow your taxes and hazard insurance. You will then pay your taxes and insurance for a determined amount of months in advance at closing to create an escrow account that will handle payment of taxes and insurance for you. Your monthly payments will include your principal loan amount, interest amount, tax and insurance amount, all payable to your lender.

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This publication is designed to provide accurate information and to address specific questions that may be unique to the Sterling County area with regard to the subject matter covered and local customs. It is furnished with the understanding that neither the author, employee, or officer of Sterling Title Company is engaged in rendering legal advice to specific individuals. If legal service or other expert assistance is required, the services of a competent professional should be sought.

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