Title Insurance in Texas: What Buyers Should Know

Buying in Oak Cliff and hearing a lot about title insurance? It can feel like one more line item on your Closing Disclosure, but it protects your ownership in ways other coverages do not. If you want confidence at closing and fewer surprises after you move in, understanding the basics will help. In this guide, you’ll learn what title insurance covers in Texas, who pays in Dallas, how rates work, and what to expect with common Oak Cliff title fixes. Let’s dive in.

What title insurance covers in Texas

Title insurance protects you against covered title defects that existed before closing. These can include undisclosed liens, forged documents, recording mistakes, or unknown heirs who later claim an interest. If a covered claim arises, the policy typically pays legal defense costs and covered losses up to the policy limit.

In Texas, you pay a one-time premium at closing. The policy stays in force for as long as you keep an insured interest. An owner’s policy protects your equity. A lender’s policy protects your lender’s lien up to the loan amount if you finance the purchase.

Texas regulates title insurance companies, policy forms, and premium rates through the Texas Department of Insurance. You can ask your title company for the TDI consumer booklet on title insurance to better understand statewide rules and what to expect in your closing package.

Owner’s policy vs. lender’s policy

Why you may need both

A lender’s policy is usually required by your mortgage lender and protects only the lender’s interest. It does not protect your equity. Buying an owner’s policy is the way to insure your ownership rights and get defense and indemnity for covered pre-closing defects.

What standard policies exclude

Standard owner’s coverage has exclusions and exceptions listed in the title commitment. Common exclusions include issues that arise after closing, zoning or use violations, and some survey or boundary matters unless you amend coverage or add endorsements. Review your commitment carefully and ask the title officer to explain each exception.

Endorsements that matter in Oak Cliff

In older Dallas neighborhoods like parts of Oak Cliff, endorsements can add valuable protection. Consider:

• Survey-related endorsements to reduce boundary risk if you have a current survey.
• Access and easement endorsements where alleys or historic utility easements exist.
• Restrictions-related endorsements if older covenants appear in the chain of title.

Your lender may require certain endorsements on the loan policy. You can choose owner endorsements based on the property’s specifics and your risk tolerance.

Who pays for title insurance in Dallas

In many Texas markets, it is common for the seller to pay for the owner’s policy and the buyer to pay for the lender’s policy. Local practice can vary by neighborhood and market conditions, and the contract controls. In Oak Cliff and the broader Dallas area, confirm who pays in your contract and negotiate as needed.

Rates, fees, and closing costs in Dallas County

Promulgated rates in Texas

Texas uses promulgated premium rates set by the state. You pay a single premium based on the insured amount. Because rates are regulated, the title insurance premium itself does not vary by company. Separate fees for endorsements, escrow or settlement services, and document preparation can vary. Ask for a written title quote that breaks down the premium and any additional fees.

Typical fees on your Closing Disclosure

Beyond the title premium, you may see:

• Escrow or settlement fees for conducting the closing.
• Recording fees paid to the Dallas County Clerk to record the deed and deed of trust.
• Endorsement charges for added coverage.
• Payoffs for liens or judgments that must be cleared before issuing the policy.

Texas does not have a statewide real estate transfer tax. Buyers moving from other states often find this notable, but you should still budget for county recording fees and any endorsements you select.

Curative work in Oak Cliff closings

Curative work is the process of fixing issues found in the title search so the title company can issue final policies. This might include obtaining lien releases, correcting deeds, addressing judgments, resolving probate gaps, or securing easement releases.

Common issues in older neighborhoods

Older Oak Cliff properties sometimes present:

• Old mortgages that were paid off but not released of record.
• Heir or probate gaps requiring affidavits or court action.
• Recorded judgments or tax liens that must be paid or released.
• Historic alley or utility easements that affect use.
• Boundary questions when no recent survey exists.
• Municipal code liens that need to be resolved.

Every property is unique, so rely on the title commitment to identify what applies to your purchase.

Typical timelines to resolve title defects

• Title commitment: often within several business days to 1–2 weeks after opening title.
• Simple items, like a routine lien release: a few days to a couple of weeks depending on the lienholder’s response time.
• Moderate issues, such as clearing a judgment or obtaining an heir affidavit: several weeks.
• Complex matters, like unresolved probate or boundary disputes: several months and possibly a delayed closing.

Dallas County supports eRecording, which can speed recordation after closing. Many documents record the same day or within a business day, subject to volume and complete documentation.

Smart ways to keep closing on track

• Open title promptly after your contract is executed so curative work starts early.
• Choose a title company experienced with Dallas County records and Oak Cliff property types.
• Order a current survey if the commitment shows survey-related exceptions and you want boundary coverage.
• Use escrow or holdback agreements only for minor items that can be cured shortly after closing. Avoid closing with major, unresolved risks unless you fully understand and accept the exceptions.

Buyer checklist for Oak Cliff

Use this quick list to stay organized:

• Confirm in your contract who pays the owner’s title policy and the lender’s policy.
• Request the preliminary title commitment and review all exceptions.
• Ask which endorsements your lender requires and which ones you should consider.
• Order a current survey if boundary questions are likely.
• Get written estimates for the title premium, endorsements, recording fees, and any known curative costs.
• Request an estimated timeline for curative work from the title company.
• Consult a Texas real estate attorney if major defects appear.

Working with your title company

Your title company is your partner in a smooth closing. Here are smart questions to ask:

• Please walk me through each exception in my title commitment.
• Which endorsements are included, required, or available, and what do they cost?
• Who is paying for the owner’s policy under our contract and local practice?
• What curative items have you found, and what is the expected timeline to resolve them?
• Can you provide a written title quote showing premiums, fees, endorsements, and recording costs?

Final thoughts

Title insurance is one of the most important protections you can buy when purchasing a home in Oak Cliff. The premium is paid once, the coverage lasts as long as you own, and it can safeguard your equity if a covered claim arises. Pair a careful review of your title commitment with the right endorsements and a clear plan for curative work, and you will head to closing with confidence.

If you want steady guidance from contract to close, including help navigating title and curative steps, reach out to Marla Sewall. Marla provides calm, high-touch buyer representation backed by deep Dallas market knowledge and Compass resources.

FAQs

Do I need an owner’s policy if my lender has a policy?

• Yes. A lender’s policy protects the lender’s lien, while an owner’s policy protects your equity and provides defense and indemnity for covered pre-closing defects.

Are title insurance rates negotiable in Texas?

• The premium is set by state regulation, but allowable fees, endorsements, and settlement charges can vary by company, so ask for a written quote.

Who usually pays for the owner’s policy in Dallas?

• It is common for sellers to pay for the owner’s policy and buyers to pay for the lender’s policy, but local practice varies and the sales contract controls.

How long does curative work take in Dallas County?

• Simple releases can take days to weeks, moderate issues can take several weeks, and complex probate or boundary matters can take months; ask your title company for estimates.

What happens if a title defect appears after closing?

• If it is covered and existed before the policy date, your owner’s policy typically covers defense costs and covered losses up to the policy limit; report the claim promptly.