Available Services

Abstracts of Title

An Abstract of Title is a compilation of the history of title to land as such title is recorded in the County Clerk’s records. An abstract does not purport to convey title or prove feasible title. It is an exhibit of the documents that affect the title to the subject parcel of land covering a specific time period. It is advisable to have Abstracts of Title examined by an experienced title attorney for an opinion as to the condition of the title.

Title Insurance

A title insurance policy insured the title in a given name, subject to noted exceptions and encumbrances listed on the policy and renders the insurer liable to compensate the insured for loss arising from error of search and legal interpretation in an amount not exceeding that stated on the policy. A title policy does not guarantee “good” title. A policy provides coverage for title that is considered insurable. A title search and examination are performed before a commitment for title insurance is issued. Once all requirements for closing have been satisfied, a policy will be issued subject to the noted conditions of the policy.

Which is Best?

Each form of title documentation has its own merits. Which form you use will depend upon the factors regarding your particular real estate transaction. In Sterling County, the abstract method has been used primarily over the last 100 years. It provides excellent information to complicated issues such as oil, gas and mineral estates, leasehold estates and historical data involving familial properties. It is important to protect the old abstracts from wear and the elements. The abstracts are supplemented and brought up to date from the last previous abstract. The expense of supplementing an abstract depends upon the number of documents filed for the specific time period.

Title Insurance is an industry standard in the mortgage and real estate industry. Rates, rules and regulations are set by the Department of Insurance for agents in Texas. Most financial institutions prefer the title policy over the abstract of title/attorney examination method. Government insured loans, like FHA and VA require title insurance. Conventional loans offered by local and regional financial institutions are more flexible. Generally, the seller provides abstracts or a title policy for the buyer in the ordinary transaction. Consider all factors of the transaction before you determine which method is best for you.

Mineral and Royalty Ownership

Mineral and Royalty Ownership relies upon the documentation found in abstracts of title. It is beneficial to preserve and maintain current abstracts that involve mineral and royalty interests. When making new oil and gas leases, keep lease provisions that provide for abstract supplements to be returned to the landowner.

Escrow Closings

Sterling Title Company performs escrow closings. An escrow account is maintained for the protection of the principals of a transaction. Monies or properties are placed in escrow and the title company maintains the deposited items (like earnest money, sale proceeds, loan proceeds) in accordance with the terms of a real estate agreement. When all provisions have been met and the closing is finalized, the escrow account is disbursed to the proper parties.

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.