Texas has very clear rules about what title insurance covers—but who pays for it is always negotiable.
And as of 2024–2025, we have new state-level rule changes that influence how title policies and premium splits work.
When I write offers for clients in North Texas, I walk them through the title policy costs, negotiation strategies, and county-specific norms so we know exactly how to structure the offer.
This article breaks down everything you need to know.
1. What Is a Title Policy in Texas?
A title insurance policy protects the buyer (and lender) from financial loss related to issues with ownership, such as:
✔️ Liens
✔️ Fraud or forgery
✔️ Missing heirs
✔️ Survey errors
✔️ Legal disputes
✔️ Improperly recorded documents
There are two policies:
Owner’s Title Policy — protects YOU (the buyer)
Lender’s Title Policy — protects the lender
The lender requires their policy.
The owner’s policy is optional but strongly recommended (and almost always purchased).
2. Who Typically Pays for the Title Policy in Texas?
This depends heavily on the county.
Traditional Norms (Not Rules):
✔️ Collin County — Seller usually pays
(Frisco, McKinney, Prosper, Allen, Plano, Celina, Melissa, Anna)
✔️ Denton County — Seller usually pays
(Frisco, Little Elm, Aubrey, Corinth, Lewisville)
✔️ Dallas County — Buyer more often pays
(Especially in competitive areas or older neighborhoods)
✔️ Tarrant County — Buyer more often pays
(Fort Worth, Keller, Southlake)
These are simply customs, not laws.
The contract allows either side to pay.
3. How the New Rule Changed Things (2024–2025 Update)
Recent changes to Texas title rules removed some of the older fee structures and clarified the way certain endorsements and premium calculations work.
The big takeaways:
✔️ Even though the premium itself is still standardized,
sellers and buyers can now negotiate more freely on specific endorsements.
✔️ Market norms shifted slightly in competitive neighborhoods.
Buyers are now more likely to offer to pay the title policy as part of a stronger offer.
✔️ Builders often require buyers to use the builder’s title company
in exchange for paying the title policy.
✔️ The rule reinforced that the premium is regulated—
title companies cannot discount it.
This makes strategy even more important.
4. How Much Does the Title Policy Cost?
Title premiums are set by the Texas Department of Insurance (TDI).
For example:
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On a $500,000 home, the policy is roughly $2,700–$2,900
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On a $700,000 home, the policy is roughly $3,600–$3,800
The cost increases on a sliding scale.
5. Why Title Policy Payment Matters in Negotiations
In a competitive Texas market, who pays the title policy can make or break an offer.
✔️ If I represent the buyer in a competitive situation:
I may recommend buyer pays the title policy to strengthen the offer without increasing the purchase price.
It’s a cleaner advantage than overpaying.
✔️ If I represent the seller:
I evaluate offers based on:
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Price
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Terms
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Concessions
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Who pays the policy
Two offers may be identical except for this line—and that can be the difference.
6. Who Should Pay? My Rules of Thumb
BUYER should pay if:
✔️ We’re in a competitive multiple-offer situation
✔️ The seller is receiving several offers
✔️ You want to win without increasing price
✔️ We’re buying from a builder
✔️ The home is a hot listing with high demand
SELLER should pay if:
✔️ Home has been on market over 14–30 days
✔️ We’re negotiating repairs
✔️ We’re in a buyer’s market
✔️ The offer price is strong
✔️ There are no competing buyers
There is no one-size-fits-all answer—it’s strategic.
7. What About Title Endorsements?
Endorsements modify the policy to cover additional risks.
Common examples:
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T-19.1
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T-23
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T-36
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T-38 (HOA lien coverage)
These are typically buyer-paid, but also negotiable.
I break these down for clients so they understand which ones they need.
8. Builders & Title Policies
Most new construction builders require:
✔️ Buyer uses the builder’s preferred title company
In exchange for the builder paying the title policy.
If you choose your own title company, the builder often makes you pay for the policy yourself.
I help you analyze the pros and cons of each option.
9. How I Advise Clients on Title Policy Strategy
When we write an offer, I consider:
✔️ County norms
✔️ Competition level
✔️ Seller motivation
✔️ Offer strength relative to others
✔️ Recent neighborhood trends
✔️ Whether title cost is worth trading for a stronger offer
Sometimes paying $2,700 for the policy saves you from raising the price $10,000.
That’s good strategy.
Bottom Line: Title Policy Payment Is a Strategic Advantage in Texas
Whether you’re buying or selling, this is more than a line item—it’s a negotiation tool.
When used correctly, it can help you win a home or maximize your proceeds.
My job is to help you use it strategically, not randomly.
Want a Realtor Who Understands Texas Title Strategy Inside & Out?
If you want to structure your offer or sale perfectly—including title negotiation—I’d love to help.
