What Is Title Insurance?
When you buy a home, you're not just buying a building — you're buying the legal right to own and use that property. "Title" is the legal term for that ownership right. Title insurance protects you if someone challenges your ownership after you've already closed.
Think of It This Way
Imagine buying a used car, only to discover 6 months later that the seller didn't actually own it — it was stolen, or they still owed money on it. Title insurance is like protection against that exact scenario, but for your home. It covers problems in the property's ownership history that existed before you bought it.
What Title Insurance Protects Against
Ownership Disputes
- A previous owner's unknown heir claims they inherited the property
- Forged signatures on a past deed
- Errors in public records (misspelled names, wrong lot numbers)
- A previous sale where the seller didn't have legal authority to sell
Financial Surprises
- Unpaid property taxes from a prior owner
- Outstanding liens from contractors who weren't paid
- HOA (Homeowners Association) liens or assessments
- Unpaid child support or IRS (Internal Revenue Service) liens attached to the property
Two Types of Title Insurance
There are two separate title insurance policies involved in most home purchases. Understanding the difference is important because they protect different parties.
Owner's Policy
- Protects: You, the homebuyer
- Coverage amount: Full purchase price of the home
- Duration: Lasts as long as you (or your heirs) own the property
- Who pays in Texas: Traditionally the seller pays, but this is negotiable
- Required? Not legally required, but strongly recommended
Lender's Policy
- Protects: Your mortgage lender only
- Coverage amount: Loan amount (decreases as you pay down your mortgage)
- Duration: Lasts until the loan is paid off or refinanced
- Who pays in Texas: The buyer pays
- Required? Yes — virtually all lenders require it
Don't Make This Mistake
Many first-time buyers assume the lender's policy protects them too. It doesn't. If a title issue surfaces and you only have a lender's policy, the lender is covered but you could lose your entire investment. The owner's policy is your protection.
The Title Search Process
Before a title company issues insurance, they perform a thorough title search — a deep dive into the property's ownership history. Here's what happens:
Contract Signed
Once your offer is accepted, the title company is selected (in Texas, the buyer usually chooses). They begin researching the property immediately.
Record Search
The title company searches county records going back decades — deeds, mortgages, court judgments, tax records, liens, and easements. In DFW's fast-growing counties (Collin, Denton, Tarrant, Dallas), properties may have changed hands many times.
Title Commitment Issued
You receive a "title commitment" document listing everything the company found. This includes any exceptions — things the policy won't cover, like existing easements or known restrictions.
Issues Resolved
If problems are found (an old lien, a missing signature), they must be resolved before closing. The seller typically handles this, but your agent and title company manage the process.
Policy Issued at Closing
At closing, you pay a one-time premium and the title insurance policy is issued. No monthly payments — it covers you for as long as you own the home.
Title Insurance Costs in DFW
Texas is one of the few states where title insurance rates are set by the Texas Department of Insurance (TDI), meaning the price is the same no matter which title company you use. Here's what typical DFW buyers pay:
Good News for Buyers
When you buy the lender's policy at the same time as the owner's policy (which is almost always the case), you get a "simultaneous issue" discount. The lender's policy is significantly cheaper when bundled — typically only $100–$200 extra on top of the owner's policy premium.
What Is a Property Survey?
A property survey is a professional measurement of your property's physical boundaries and features. A licensed surveyor visits the property, measures it, and creates a detailed map (called a "plat") showing exactly where your property lines are and what's on the land.
Why It Matters
That fence your neighbor built? It might actually be on your property. That shed in the backyard? It might cross into an easement where the city has the right to tear it down. A survey reveals the truth about physical boundaries that visual inspection alone can't confirm.
What a Survey Shows
Boundaries & Size
- Exact property lines
- Total lot dimensions
- Corner markers (iron pins)
- Whether fences follow actual boundary lines
Structures & Features
- Location of the house, garage, shed, pool
- Driveways, patios, and decks
- Trees or landscaping near boundaries
- Any encroachments (structures crossing property lines)
Easements & Rights
- Utility easements (power, water, gas lines)
- Drainage easements
- Access easements (shared driveways)
- Setback requirements (how close you can build to the property line)
Survey Costs & When You Need One
Do You Always Need a New Survey?
Not necessarily. If the seller has a recent survey (within 5 years) and no changes have been made to the property (no new fences, structures, or additions), the title company may accept the existing survey. However, most lenders and title companies prefer a new survey, especially for:
Get a New Survey When:
- The existing survey is more than 5 years old
- Any structures, fences, or features have been added
- You're buying in a new development (new construction)
- The property has irregular lot lines or is near water
- Your lender requires it
Existing Survey May Work When:
- Survey is recent (less than 5 years) and seller provides an affidavit that nothing has changed
- Standard subdivision lot with no modifications
- Title company confirms acceptability
- Your lender approves (always check first)
Real Title & Survey Issues in DFW
These aren't rare edge cases. Title and survey problems come up regularly in the DFW market, especially given how fast North Texas has grown. Here are common scenarios:
🏗️ New Construction Easement Surprise
A buyer in Frisco discovered through their survey that a utility easement ran directly through where they planned to build a pool. The builder's marketing materials never mentioned it. Without the survey, they would have invested thousands before discovering the restriction.
🏚️ Old Lien From a Contractor
A home in Arlington had a mechanic's lien from a roofing company that was never paid by a previous owner 8 years ago. The title search caught it, and the seller had to resolve it before closing. Without title insurance, the new buyer might have inherited the debt.
🪧 Fence on the Wrong Side
A property in Plano had a neighbor's fence that was 3 feet over the actual property line. The survey proved the encroachment, giving the buyer leverage to negotiate the issue before buying rather than fighting about it later.
📋 Heir Nobody Knew About
A Fort Worth property was sold by the estate of a deceased owner, but a previously unknown child later claimed inheritance rights. The owner's title insurance policy covered the legal defense and protected the buyer's ownership.
Key Takeaways
Title insurance protects your ownership rights — it's a one-time cost at closing with no monthly premiums
The lender's policy only protects the lender — make sure you get an owner's policy too
A property survey confirms exact boundaries, structures, and easements on your land
Texas title insurance rates are state-regulated — same price everywhere, so choose your title company based on service
Order your survey early — 2-3 week turnaround can cause closing delays if you wait
Review your title commitment carefully and ask your agent about any exceptions listed