KCAC Updates

Effective April 1, 2008, the Guaranty Fee that closing agents are required to collect for each policy issued will go from $1 per policy to $5 per policy. This fee is required by Texas Department of Insurance (TDI) and is used to fund an account held by TDI, the purpose of which is to pay claims made on title insurance policies issued by underwriters, and for escrow liabilities of title agents that have gone out of business. At this time, there is only one such company that has any material level of liabilities, and that is U.S. Life Title Company, which later became Title USA.

1031 Exchanges: We get a lot of questions about 1031 tax deferred exchanges. Many people have a basic idea of what they are and how they work, but there are still many questions raised. In its simplest form, an investment property being sold can be ‘exchanged’ for another investment property that is being purchased.