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The appraisal is ordered by the buyer's lender. The appraiser represents
the interests of the lender, and is there to verify that your home
supports the value in the contract.
He/she will make an appointment to measure your home, inspect the
inside and compare it with other recent sales in the area.
Normally, contracts are contingent upon the buyer's loan approval,
and an appraisal supporting the contract price is a key component
in this process.
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The survey is usually ordered by the title company after inspections
are complete.
The surveyors will measure the land and exterior components of
your property. They do not need to come inside.
Buyers often see the survey at closing (or shortly before).
If there are any encroachments they will be revealed by the survey.
The buyer may then choose to accept the encroachment and proceed
with closing, or may choose to terminate the contract. For this
reason, it is best to disclose title issues early (if you are aware
of any).
Today buyers have the option of using an old survey on the property
if you have one available. It is a good idea to present a copy during
marketing. If your old survey is used, you will be asked to sign
an affidavit stating that no additions have been made to the house
since that survey was done, including decks, pools or fencing.
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The title company will conduct a title search of deeds, mortgages,
liens, deaths, divorces, etc. in the county property records relating
to the property.
They will issue a "commitment" to provide title insurance
to the buyer. You will receive a copy of the commitment in the mail
(or by email) about 2 weeks after contract.
If an unexpected title issue comes up, I will recommend that you
consult an attorney.
Title insurance insures against events which happened in the past
which affect the title to the property. The title company agrees
to defend the insured or pay losses if the title is challenged or
defective.
Some examples of hidden defects are: forgeries, lost wills, undisclosed
marriages, clerical errors, etc.
Title insurance rates are set by the State of Texas. Generally,
in resale contracts, the seller pays for the owner's policy of title
insurance, and buyer pays for lender's policy.
Sample approximate costs for title insurance are:
$200,000 - $1,423
$300,000 - $1,975
$500,000 - $3,079
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