Title Insurance in Texas, in Plain English

Title insurance is one of those closing costs that nobody really explains. Here is the short version.

What "title" means

Title is your legal ownership of the property. A title company researches the property's history to make sure the seller actually owns it and that there are no unexpected liens, judgments, or claims against it.

What title insurance protects

Title insurance protects you if a problem with ownership shows up later that was not caught during the search. Examples include a forged signature in the property's history, an unknown heir, or a recording error. Unlike most insurance, you pay once at closing and the protection lasts as long as you own the home.

Two policies

• The owner's policy protects you, the buyer.
• The lender's policy protects your lender, and it is required if you have a mortgage.

Why prices are the same everywhere in Texas

In Texas, title insurance premiums are set by the Texas Department of Insurance. That means the premium for the same policy is the same at any title company. Escrow fees and other services can differ.

The title commitment

Early in your contract, the title company sends a title commitment. It lists what the policy will cover and any exceptions. Your contract gives you time to review it and object to issues. I always look through it with buyers, especially for easements and restrictions.

Choosing a title company

Your contract names the title company. Buyers and sellers often go with one the agents trust to communicate well and close on time.

Title work is mostly invisible when it goes well, and that is the goal. If you are under contract and have questions about your title commitment, I'm here to help.