If you’re buying or selling a home in Texas, you’ll encounter a flurry of documents, terms, and fees—many of which can feel overwhelming. Title insurance is one of the most misunderstood yet critically important parts of a real estate transaction.
What Is Title Insurance?
At its core, owner’s title insurance protects a buyer’s legal rights to a property. Just as a lender requires a title policy to protect their financial interest in the home, an owner’s title insurance policy protects the homebuyer from future legal and financial claims against the property.
In other words, it ensures that when you purchase a home, you’re getting clear ownership, free of hidden debts, legal disputes, or title errors that could arise down the road.
How It Protects You
Let’s say you’ve just closed on a new construction home, only to find out weeks later that the builder failed to pay a subcontractor. That subcontractor—say, the roofer—files a lien against your home for unpaid work. Without title insurance, that financial burden may fall on you.
This is just one scenario. Other common issues include:
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Unpaid taxes or HOA dues from the previous owner
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Errors in public records
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Unknown heirs claiming ownership
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Fraudulent signatures in the chain of title
In any of these cases, owner’s title insurance covers your legal fees and losses, protecting your investment.
Why It’s a Smart Choice in Texas
Texas homebuyers typically pay a one-time premium at closing for owner’s title insurance, which provides protection for as long as they own the home. That means no ongoing fees, no renewals, and peace of mind that their property rights are secure. However, depending on current market conditions and local norms, it’s not unusual for sellers to cover the cost of the owner’s title policy as part of the negotiated terms. Your real estate agent can help you navigate what’s customary in your area and guide you through this aspect of the transaction.
The Bottom Line
Title insurance might not be the flashiest line item at closing, but it could be the most valuable one. Whether you’re a buyer looking to safeguard your new home or a seller wanting to offer a smooth, secure transfer of ownership, understanding and securing title insurance is a powerful and wise move.
If you’re unsure whether you need it or want to learn more, talk to your real estate agent or visit homeclosing101.org for more information.
Remember, the more you know about title insurance, the better equipped you'll be to protect your investment. Don’t hesitate to reach out for guidance or further resources.
About the Author
Edwin Jones is a Private Client Real Estate Agent serving in the North Dallas Tollway corridor, from Park Cities to Plano to Prosper. An avid investor and serial entrepreneur, he holds an MBA and a bachelor's degree in Economics from Southern Methodist University. With a deep understanding of luxury home design, finance, marketing, and real estate investing, Edwin brings a well-rounded, strategic perspective to every client interaction. His writing reflects the same level of intentionality: starting with a compelling premise, organizing key insights, weaving in personal experience, and using AI to generate a first draft, which he then polishes through editing, fact-checking, and plagiarism screening. His commitment to excellence ensures that the content is informative and trustworthy for anyone navigating the world of luxury real estate.
