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Title Insurance 101 – What Every Buyer Should Know

Title Insurance 101 – What Every Buyer Should Know

Protecting Your Property Investment in Texas

Purchasing a home or property in Texas is a major milestone—and often, one of the most significant financial investments a person will make. Amid the excitement of selecting a home, securing financing, and preparing for the move, many buyers are unaware of a crucial step in the closing process: purchasing title insurance. While it may seem like a small detail, title insurance plays a vital role in protecting your rights as a property owner.

Title insurance is a one-time policy purchased at closing that safeguards you from financial loss related to problems with the property’s title. Unlike other types of insurance that protect against future events, title insurance is designed to protect you from past issues—specifically, those that may not have been uncovered during a title search. These issues could include unpaid taxes or liens from previous owners, recording errors in public records, undisclosed heirs with legal claims to the property, forged signatures, or misfiled legal documents. Any of these could challenge your legal ownership and create costly, time-consuming problems after the transaction is complete.

In Texas, buyers typically purchase two types of title insurance policies: an owner’s policy and a lender’s policy. The owner’s policy protects you—the buyer—for as long as you or your heirs own the property. It covers both legal expenses and financial losses arising from title defects. The lender’s policy, which is usually required if you have a mortgage, protects the lender’s interest in the property until the loan is fully repaid. Both policies are issued at the same time during closing, and while buyers are responsible for obtaining the lender’s policy, it’s common practice in Texas for the seller to pay for the owner’s policy as part of the sales agreement.

One of the most common questions buyers ask is: “How much does title insurance cost?” Fortunately, in Texas, title insurance premiums are regulated by the Texas Department of Insurance. This means that prices are standardized across all title companies and based solely on the property’s sale price. For instance, on a $250,000 home, the base premium for title insurance is approximately $1,743. This amount may vary slightly depending on optional endorsements or special circumstances, but it remains a one-time fee—not something you’ll need to pay again.

When you work with a trusted title company like River Rock Title, the process includes a comprehensive title search to uncover any existing issues and ensure your investment is protected before you take ownership. If a problem does arise later, your policy will cover the cost to defend your title and, if necessary, reimburse you for losses related to the defect.

Title insurance offers peace of mind. It ensures that your claim to the property is legally sound, so you can move forward with confidence. In a state like Texas, where real estate law can be complex and title history stretches back generations, having that layer of protection is not just smart—it’s essential.

If you have questions about title insurance or the closing process, our team at River Rock Title is here to help. We believe that every buyer deserves a clear, secure path to ownership—and we’re proud to guide you every step of the way.

 

Closing Checklist for Buyers & SellersEssential Steps for a Smooth Texas Closing

For Buyers

Before Closing:

  • Submit the fully executed contract to the title company.

  • Deliver earnest money and option fee within the contract deadline.

  • Provide your lender with all required financial documents.

  • Avoid making major purchases or changes to your credit profile.

  • Review the title commitment issued by the title company.

  • Schedule inspections and negotiate any necessary repairs.

  • Stay in close contact with your lender and respond to requests promptly.

  • Obtain or review the existing survey (or order a new one if needed).

  • Shop for homeowner’s insurance and provide your lender with policy details.

  • Review your Closing Disclosure at least three days before closing.

  • Schedule a final walk-through of the property.

On Closing Day:

  • Bring a valid, government-issued photo ID.

  • Bring a cashier’s check or wire funds for closing costs and down payment (confirm wiring instructions with the title company ahead of time).

  • Sign all lender and title documents.

  • Receive keys once the transaction has funded and the deed is recorded.

For Sellers

Before Closing:

  • Provide the title company with mortgage payoff information.

  • Gather and submit any required documents (e.g., existing survey, warranties, utility info, HOA details).

  • Complete any agreed-upon repairs and keep receipts for proof.

  • Ensure the home is clean, empty (unless agreed otherwise), and in move-in condition.

  • Coordinate with the title company if closing remotely or via power of attorney.

  • If applicable, request or provide HOA resale certificates.

  • Notify utility companies and service providers of the move-out date.

On Closing Day:

  • Bring a valid, government-issued photo ID.

  • Review and sign all necessary closing documents.

  • Turn over house keys, garage remotes, and any manuals or access codes.

  • Receive proceeds from the sale (typically via wire transfer).

Tips for Both Buyers & Sellers

  • Respond promptly to title company requests to avoid delays.

  • Double-check all names, addresses, and financial information on documents.

  • Keep a copy of all closing paperwork for your records.

  • Communicate with your real estate agent throughout the process for support and updates.