Greater Houston buyer guide
What does title insurance cover when you buy in Houston?
An owner’s title policy protects the buyer against covered ownership risks. A loan policy protects the lender’s interest. Before closing, review the title commitment, its requirements and its exceptions; paying for a policy does not mean every property issue is covered.
Source for the policy distinction: Texas Department of Insurance: Title insurance.
How are the owner’s policy and lender’s policy different?
Owner’s policy
This insures the buyer against the covered risks in the policy. TDI explains that it addresses ownership problems arising before purchase that were unknown at purchase. Keep the policy and read its coverage, exceptions and conditions.
Loan policy
This protects the lender’s interest. It does not replace an owner’s policy for the buyer. Ask your lender which policy and endorsements the loan requires.
Title insurance is separate from homeowners and flood insurance. It does not insure the physical condition of the house or replace an inspection. TDI also cautions that title insurance does not guarantee that you can sell the property or borrow against it.
Source: TDI title-insurance FAQ.
Who pays for title insurance in a Texas home purchase?
Read the signed contract. In the TREC One to Four Family Residential Contract (Resale), paragraph 6A identifies the title company and whether the seller or buyer pays for the owner’s policy. Do not treat customary practice as the agreement for your purchase. Other transaction types may use a different contract.
Source: Current TREC resale contract, paragraph 6A. For the broader cost categories, see Houston closing costs and who pays.
What should I compare in a title-company estimate?
Texas title-insurance premium rates are regulated. Compare the actual policy and endorsements being quoted, then separate the policy premium from escrow, recording and other closing charges. TDI notes that some closing fees can differ between companies. Ask for an itemized explanation rather than assuming every line is title insurance.
Source: TDI: What is title insurance?
What is the title commitment, and how should I review it?
The commitment comes before the policy. It describes the conditions under which the company will issue insurance. It is not a guarantee of issue-free title. Request the documents behind listed exceptions and ask the title team and your attorney to explain matters that affect your planned use.
Source: TDI: Commitment versus policy.
- Schedule A: the transaction being insured
- Check the proposed insured, policy amount, ownership interest and legal description against the transaction documents.
- Schedule B: exceptions from coverage
- Identify the listed matters the policy will not cover. Ask for the underlying recorded documents and an explanation of their effect on the property.
- Schedule C: requirements to resolve
- Ask which items must be satisfied for issuance, who is responsible for each and what evidence the title company needs.
- Schedule D: disclosures and premium information
- Review the company and agent disclosures, estimated premium and related information. Ask about any line you cannot reconcile.
Sources: TDI Commitment Form T-7, Schedules A–C; TDI procedural rule P-21, Schedule D.
Which questions should I resolve before closing?
Compare the commitment with the contract and survey. Ask title to explain or correct a discrepancy before relying on the documents.
Bring up a planned addition, fence, pool, rental use or access concern. Ask whether an easement, restriction, survey issue or other exception matters to that plan.
Ask the title professional about applicable exclusions, optional endorsements and any survey-related coverage choice. Obtain the actual terms; do not assume that a policy covers every boundary or mineral issue.
Track unresolved items with the title team, lender and attorney. The signed contract sets the relevant delivery and objection provisions. Have those dates identified for your transaction rather than using a generic countdown.
Call the title team using an independently established phone number before sending funds. Verify changed instructions with that trusted contact rather than relying on a new email or text.
These checks are a working list and do not submit information. Print the page if you want a copy for your closing folder.
Coverage review: TDI Commitment Form T-7. Contract dates: TREC resale contract, paragraph 6. Payment verification: TDI wire-fraud guidance.
What should I keep after closing?
Keep the issued owner’s policy with your closing documents. The commitment is not the final policy. Ask the title company when and how it will deliver the policy, and contact it if you need a copy or have a potential claim. For a coverage question, use the actual issued policy and the title insurer’s instructions.
Source: TDI: Keeping and obtaining your owner’s policy.
Want help organizing your closing questions?
We can use a 30-minute buyer conversation to sort the property questions, documents and next steps. I can help coordinate the real-estate work and identify questions for your title professional, lender or attorney.
Plan a 30-minute buyer conversationGeneral buyer education, not legal advice or a promise of coverage. Your contract and issued policy control; a title professional or attorney should address questions about your transaction. Sources checked October 7, 2026.
