Texas is one of a handful of states where title companies, not attorneys, handle real estate closings.
If you’re coming from another state, this can feel completely different—but once you understand how title companies work, the process becomes much smoother.
When I represent buyers and sellers in North Texas, I stay in constant communication with the title company from the moment a contract is executed until the deal funds and records. A great title company keeps your transaction safe, efficient, and legally protected.
Here’s the simple, clear explanation.
1. What Is a Title Company in Texas?
A title company is a neutral third party that:
✔️ Verifies legal ownership of the property
✔️ Ensures the title is clear (no liens or claims)
✔️ Issues title insurance to protect the buyer and lender
✔️ Collects and distributes funds
✔️ Prepares closing documents
✔️ Records the deed with the county
✔️ Holds earnest money in escrow
Think of the title company as the quarterback of the closing process.
2. Why Texas Uses Title Companies Instead of Attorneys
Texas law allows title companies to handle the entire closing process.
This makes Texas closings:
✔️ Faster
✔️ Cheaper
✔️ More streamlined
✔️ More standardized
There’s no need to hire a real estate attorney unless a special legal issue arises.
3. What the Title Company Does After We Go Under Contract
Once our contract is executed, title immediately starts working behind the scenes.
Step 1: Open escrow
They receive and deposit your earnest money.
Step 2: Order a title search
They dig through decades of records to verify ownership.
Step 3: Review legal history
They check:
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Liens
-
Judgments
-
Delinquent taxes
-
HOA violations
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Bankruptcies
-
Child support liens
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Easements
-
Restrictions
-
Surveys
-
Boundary issues
Step 4: Issue the Title Commitment
This is one of the most important documents buyers receive.
Step 5: Coordinate with lender
They work with your lender on:
-
Closing Disclosure
-
Loan documents
-
Payoff statements
-
Appraisal requirements
Step 6: Prepare closing documents
This includes the deed, settlement statements, and final forms.
Step 7: Facilitate closing day
You sign everything at the title office (or mobile notary).
Step 8: Fund and record
Once funds are received, the deed is recorded with the county and the home officially becomes yours.
4. Understanding the Title Commitment
You will receive the Title Commitment during the transaction—usually within the first week.
It includes:
✔️ Schedule A — Basic facts
(Property description, purchase price, proposed insured parties)
✔️ Schedule B — Exceptions
(Easements, restrictions, HOA rules)
✔️ Schedule C — Requirements
(Items that must be cleared before closing)
✔️ Schedule D — Disclosure of ownership
(Who owns the title company, fee distributions)
I walk you through every page so you know exactly what you’re looking at.
5. What Title Insurance Covers in Texas
Title insurance protects you from:
✔️ Fraud
✔️ Forgery
✔️ Missing heirs
✔️ Incorrect surveys
✔️ Previous liens
✔️ Legal disputes over ownership
There are two policies:
-
Owner’s Policy — protects the buyer
-
Lender’s Policy — protects the lender
Together, they ensure you won’t face unexpected legal claims after you move in.
6. Who Pays for the Title Policy in Texas?
This is negotiable.
Northern half of DFW (Collin, Denton, Prosper, Frisco):
The seller traditionally pays.
Southern half (Dallas County, Tarrant County):
The buyer more commonly pays.
In competitive situations:
Buyers sometimes offer to pay to strengthen their offer.
I advise you based on our area and competition level.
7. Why a Good Title Company Matters in North Texas
Not all title companies are the same.
I choose companies that are:
✔️ Extremely responsive
✔️ Great communicators
✔️ Strong with difficult title issues
✔️ Efficient with lenders
✔️ Clear about deadlines
✔️ Experienced with new construction
✔️ Familiar with MUDs, PIDs, and HOAs
A great title company can save a deal.
A bad one can delay or kill it.
8. Common Title Issues I Watch For in North Texas
North Texas has unique challenges:
❗ MUD/PID tax bonds
❗ Drainage easements
❗ HOA violations
❗ Encroachments (fences, patios, sheds)
❗ Liens on the property
❗ Child support liens
❗ Outdated surveys
❗ Easement changes from new development
❗ Builder title requirements
I review these immediately when the Title Commitment arrives.
9. How I Work With the Title Company for You
When I represent you, I:
✔️ Confirm earnest money receipt
✔️ Track deadlines
✔️ Review the Title Commitment
✔️ Resolve Schedule C requirements
✔️ Coordinate invoice credits
✔️ Communicate with lender
✔️ Confirm closing disclosures
✔️ Attend closing whenever possible
✔️ Make sure the file funds and records
I don’t leave anything to chance.
10. How Texas Closings Actually Work
Texas uses wet funding, meaning:
✔️ All signatures + funds must be received
before
✔️ The home officially changes ownership
Once funding is confirmed, title records the deed with the county.
That’s when the home is officially yours.
Bottom Line: Title Companies Are the Backbone of Texas Closings
They protect your ownership, your money, and your legal rights.
And when I represent you, I make sure the title side of your transaction runs smoothly from start to finish.
Want a North Texas Realtor Who Works Closely With the Best Title Companies?
If you want a seamless, safe, well-managed Texas closing, I’d love to help.
