Buying a home in Austin is exciting, but the title paperwork can feel like a different language. You are investing a lot, and you want to be sure you truly own what you are buying without hidden surprises. In this guide, you will learn what Texas title insurance is, what it covers, how owner and lender policies differ, what the title commitment means, and what timelines to expect in Travis County. Let’s dive in.
What title insurance covers in Texas
Title insurance is a one-time premium that protects you or your lender against covered problems tied to past events, such as unknown liens, recording errors, fraud in the chain of title, or undisclosed heirs. It also typically covers legal defense costs if a covered claim comes up.
This is different from homeowners insurance, which protects against future physical damage. Title insurance focuses on the legal ownership and marketability of your property based on the past.
In Texas, title insurance companies and premiums are regulated by the Texas Department of Insurance. Policies follow standard terms and exclusions. Typical exclusions include zoning issues, government actions, and matters created after the policy date unless an endorsement is purchased.
Owner vs. lender policy
Both policies are paid once at closing, but they serve different people and amounts.
- Lender’s policy: Protects the lender’s mortgage interest up to the loan amount. Most lenders require it when you finance. It does not protect your equity.
- Owner’s policy: Protects your ownership interest, usually up to the purchase price. It is optional but strongly recommended.
Coverage lasts as long as you have an interest in the property. The lender’s policy amount declines as you pay down the loan. The owner’s policy typically stays tied to your purchase price.
Who pays and what it costs in Austin
In many Texas transactions, including Austin, it is common for the seller to pay for the owner’s title policy premium. This is a custom, not a rule, and it is fully negotiable. Confirm who pays in your contract.
Premiums in Texas follow state-approved rate schedules. Because the Texas Department of Insurance regulates premiums, costs are generally consistent across title companies for the same coverage and endorsements. You will also see separate title-related fees, such as closing or escrow fees, recording fees, and endorsement charges. Ask for a written estimate so you know what to expect.
The title commitment, explained
The title commitment is the title company’s promise to issue a policy at closing, as long as specific requirements are met. It is your roadmap from contract to close and shows what will be insured and what will be excluded.
Most commitments include these parts:
- Schedule A: The basics. Legal description, proposed insureds, and policy amounts.
- Schedule B — Part I (Requirements): Items that must be handled before closing, such as paying off liens or providing affidavits.
- Schedule B — Part II (Exceptions): Things the policy will not cover, such as recorded easements, taxes not yet due, and restrictive covenants.
How it fits in your timeline:
- You sign the contract and deposit earnest money.
- Your agent opens title and escrow with the chosen title company.
- The title company searches public records and issues the commitment, often within several business days.
- You review the requirements and exceptions with your agent and title officer. Any issues are addressed before closing.
- At closing, the title company records documents and issues the final policy.
When you receive the commitment, verify the legal description, confirm you and your lender are listed correctly, and review exceptions that could affect how you plan to use the property. Ask the title officer to explain any legal terms in plain language.
Austin timeline: what to expect in Travis County
Local processes are efficient, but timing can vary based on the property and parties involved. Here are common ranges:
- Title commitment: about 3 to 10 business days after opening title.
- Seller mortgage payoff statement: about 5 to 10 business days after the payoff demand, sometimes longer with large national lenders.
- HOA estoppel letters for condos or HOA neighborhoods: often 7 to 14 days, so order early.
- Tax status and certificates: same day to several days.
- Recording: Travis County supports electronic recording. Many documents record the same business day or within 1 to 3 business days.
- Clearing title defects: simple items can be resolved in days. Complex heirship or chain-of-title issues can take weeks to months.
Common issues that slow closing in Austin
Being proactive helps you avoid delays. Watch for these items:
- Outstanding liens or judgments against the seller.
- Unreleased prior mortgages or deeds of trust.
- Easements or access questions revealed in the records.
- Survey problems, such as encroachments or boundary discrepancies.
- HOA disputes or unpaid assessments.
- Chain-of-title gaps, missing signatures, or past notary errors.
- Probate or heirship issues if a prior owner’s estate was never resolved.
Endorsements Austin buyers often consider
Endorsements add specific protections for known risks and cost an additional fee. In Austin, common endorsements include:
- Survey endorsement when you have a current, acceptable survey. This can address certain boundary or improvement matters.
- Access or ingress/egress endorsement for properties with private roads or unique access situations.
- Restrictive covenant endorsements when recorded covenants affect use.
- HOA or assessment endorsements for condos and HOA communities.
Your lender may require certain endorsements. Your title officer can explain what each endorsement does and the cost.
Estimating your exact title costs
Texas premiums follow state-approved rate tables, but your exact cost depends on your price point, loan amount, and endorsements. To get a precise number:
- Ask the title company for a written title premium quote and a full estimate of closing charges.
- Confirm the same endorsements and coverage levels when comparing estimates.
- Review your Closing Disclosure to verify who pays each premium and fee.
Buyer checklist: from contract to clear title
Use this simple checklist to stay on track:
Early in escrow
- Confirm who orders title and which company is selected. Request the title commitment as soon as it is ready.
- Request a written estimate of title premiums and closing fees, including likely endorsements.
- Provide an existing survey if available or order a new one if required by the lender or needed for endorsements.
- If the property is in an HOA, request estoppel information right away.
Reviewing the commitment
- Check Schedule A for the correct legal description and insured parties.
- Review Schedule B — Part I to see what must be cleared before closing.
- Review Schedule B — Part II to understand exceptions that will remain after closing, including easements and covenants.
- Ask the title officer to explain any unclear terms, timelines, or documents to be provided.
At or before closing
- Confirm which policies will be issued and who is paying each premium.
- Review endorsements and make sure they match your needs and lender requirements.
- Keep your owner’s policy after closing for long-term protection.
If an issue appears
- Ask whether the item will be cured before closing or listed as an exception.
- Prioritize clearing items that affect marketable title, such as liens, judgments, or unreleased prior loans.
How our team guides you
You do not need to decode title alone. Our team-based model pairs your agent with dedicated transaction coordination so details do not slip through the cracks. We stay in close contact with the title officer, lender, and HOA to keep timelines on track.
We help you review the title commitment, confirm who pays which premiums in your contract, and plan for any surveys or endorsements your lender may require. If a title hiccup appears, we work with the title company to understand your options, keep you informed, and protect your long-term interests.
Ready to move forward with confidence and a clear plan from contract to close? Reach out to KHG Development Corp, DBA The Kelvin Glover Team to get expert, Austin-focused guidance.
FAQs
What is title insurance in Texas and why do I need it?
- Title insurance is a one-time premium that protects against covered title defects tied to past events and typically pays defense costs. It helps protect your ownership and marketability of the property.
Do Austin buyers need an owner’s policy if the lender has one?
- Yes. The lender’s policy protects only the lender’s mortgage. An owner’s policy protects your equity and rights as the homeowner.
Who usually pays for the owner’s title policy in Austin?
- It is common in Texas for the seller to pay for the owner’s title policy, but it is negotiable. Confirm the payment terms in your contract.
How long does the title process take in Travis County?
- Title commitments often arrive within 3 to 10 business days. Routine clearing can take days to weeks, while complex issues can take longer. Recording often occurs the same day to 1 to 3 business days after closing.
Will title insurance cover zoning or future regulation changes?
- Generally no. Title insurance does not cover most zoning issues, eminent domain, or changes in government rules after the policy date unless a specific endorsement applies.
When do I receive my final title policy in Austin?
- After closing and recording, the title company issues the final policy reflecting the insured amounts and any endorsements. Keep this policy in your records for long-term protection.
