Your title policy is one of the most important forms of protection you get when buying a home in Frisco, Prosper, McKinney, Celina, Plano, Little Elm, Allen, Aubrey, Sherman, and across North Texas.
A lot of buyers skim past the title policy because it feels like a formality, but it’s actually what protects you from huge financial risk.
Let me break down—in simple, first-person terms—what a Texas title policy actually does, what it doesn’t do, and why it matters.
1. There Are Two Title Policies in Texas
When you close on a home, there are two separate policies:
A) Owner’s Title Policy (protects YOU)
Covers your ownership rights.
B) Lender’s Title Policy (protects the bank)
Required by your lender.
Does NOT protect you.
The good news: once you buy an owner’s policy, it lasts as long as you own the home.
2. What a Title Policy Does Cover
A Texas title policy protects you from multiple categories of hidden issues tied to ownership.
Here’s what it covers:
A) Unknown Liens
The policy protects you from:
✔️ Unpaid contractor bills
✔️ Unpaid taxes
✔️ Unreleased mortgages
✔️ Mechanic’s liens
✔️ HOA liens
✔️ Judgments against previous owners
These are some of the most common issues found during title searches.
B) Ownership Disputes
If someone claims they actually own the home, title insurance covers:
✔️ Legal defense
✔️ Court costs
✔️ Settlement if needed
✔️ Loss of the property (worst-case scenario)
This includes:
✔️ Missing heirs
✔️ Forged signatures
✔️ Fraudulent deeds
✔️ Clerical errors
✔️ Conflicting wills
This is more common than most buyers think.
C) Errors in Public Records
Government offices make mistakes.
The policy protects you from:
✔️ Misfiled documents
✔️ Incorrect legal descriptions
✔️ Clerical mistakes
✔️ Recording errors
These can cause massive issues if uncovered later.
D) Illegal or Improper Deeds
The policy covers issues caused by previous:
✔️ Minors signing documents
✔️ People who lacked mental capacity
✔️ Fraud
✔️ Undisclosed marriages
✔️ Forged signatures
✔️ Mistakes in deed preparation
Without a policy, you could lose your home over errors that happened decades ago.
E) Encumbrances Not Disclosed in the Policy
This includes:
✔️ Unrecorded easements
✔️ Unrecorded agreements
✔️ Missing releases
✔️ Deed restrictions affecting use
If it wasn’t disclosed before closing, you’re protected.
3. What a Title Policy Does NOT Cover
There are important limitations.
Here’s what it does not cover:
A) Boundary Disputes / Fences in the Wrong Place
Unless you purchase the optional Survey Coverage Endorsement (T-19.1), the policy will NOT protect you from:
❌ Encroachments
❌ Fence-line issues
❌ Setback violations
❌ Overlapping structures
This is why good surveys matter.
B) Zoning Restrictions
Your policy doesn’t handle:
❌ Zoning violations
❌ Future zoning changes
❌ Permitted-use changes
These issues are handled by the city, not title insurance.
C) Home Condition Problems
Title insurance does NOT cover:
❌ Roof condition
❌ HVAC issues
❌ Foundation problems
❌ Plumbing/electrical issues
❌ Mold or water damage
❌ Construction defects
Those fall under inspection and home warranty categories.
D) Mineral Rights
In Texas, mineral rights are a major separate category.
The title policy doesn’t cover:
❌ Who owns the minerals
❌ Rights to drill
❌ Oil or gas extraction
Most homes in North Texas do not include mineral rights.
E) Government Actions
The policy does not cover:
❌ Eminent domain
❌ Government seizure
❌ City-ordered demolition
❌ Zoning changes
These are outside private title protections.
F) HOA Violations You Inherit
If the seller broke HOA rules but the violation was already documented, it’s not covered unless the title company failed to disclose it.
4. What the Policy Covers Only If You Get Specific Endorsements
Texas allows optional endorsements to expand coverage.
The most common:
T-19 & T-19.1 Endorsements
These protect you from:
✔️ Encroachments
✔️ Boundary issues
✔️ Violations of recorded restrictions
✔️ Subdivision issues
I always recommend reviewing these during the title commitment stage.
T-36 Endorsement
For access issues like:
✔️ Landlocked property
✔️ No legal access easement
T-25 Endorsement
Protects you if restrictions impact:
✔️ Building
✔️ Selling
✔️ Renovating the property
These endorsements cost money, but they’re often worth it depending on the situation.
5. Why the Title Commitment Is So Important
Before closing, the title company provides a Title Commitment.
This shows:
✔️ Everything the policy will cover
✔️ Everything it will NOT cover
✔️ All liens
✔️ All easements
✔️ All restrictions
✔️ All exceptions
This is where I closely review:
✔️ Schedule A
✔️ Schedule B
✔️ Schedule C
✔️ Schedule D
I make sure you fully understand your rights and any potential risks BEFORE closing.
6. Who Pays for the Title Policy in Texas?
In most traditional resale transactions:
✔️ The seller pays for the title policy
BUT
This is negotiable.
Builders often require buyers to pay for title insurance if closing with their preferred title company.
I negotiate this based on market conditions.
7. How Long the Coverage Lasts
Your owner’s policy lasts:
For as long as you own the property.
It also covers:
✔️ Your heirs
✔️ Your beneficiaries
✔️ Anyone who inherits your interest
It’s a one-time fee for lifetime protection.
8. Why Title Insurance Is So Valuable in Texas
Texas real estate often comes with:
✔️ Historical easements
✔️ Oil & gas claims
✔️ Old liens
✔️ Multiple previous owners
✔️ Rapid development
✔️ Complex builder rights
Title insurance protects you from huge legal bills later.
9. My Rule of Thumb
If it happened before you bought the home—and affects ownership—your title policy is your shield.
Everything else falls under inspections, repairs, insurance, or legal review.
Bottom Line: Title Insurance Protects Your Ownership—But Only If You Understand What’s Covered
When I represent you, I make sure:
✔️ You understand what your policy protects
✔️ We review the title commitment together
✔️ We clear Schedule C issues
✔️ We confirm easements and restrictions
✔️ You know when to request endorsements
✔️ No surprises come up after closing
A strong title policy is one of the most important financial protections you get in a Texas real estate transaction—and I make sure you have the right coverage.
Want Me to Review a Title Commitment for You?
I’m always happy to walk through it line by line.
