Reviewed and approved by Samuel Corso, licensed Texas insurance agent.

Published September 9, 2026 · Updated October 1, 2026

Who pays for title insurance in Texas?

Title insurance is one line in a Texas home purchase, and who pays for it is a question for the buyer and seller. This guide answers it using the Texas Department of Insurance (TDI) pages on title insurance.

The short version. In Texas, who pays for title insurance is something the buyer and seller can settle between them. The Texas Department of Insurance (TDI) says in its Title insurance FAQ: "The buyer and seller may negotiate who pays the premium." The same FAQ says the premium rate is set by TDI and that each title agent is required to charge the same premium for a policy.

Here's what we'll cover: what TDI says title insurance is, whether Texas requires it, the two kinds of policy and how they are priced together, what TDI says about premiums, which closing costs can differ, who picks the title company, what the title commitment does, what a title policy generally doesn't cover, and how title insurance sits next to home insurance.

What title insurance actually insures

Title insurance in Texas covers problems with the ownership of a property, and TDI treats it as separate from insurance against damage. TDI's FAQ defines it this way: "Title insurance insures against financial loss caused by defects in title to real estate." The FAQ adds that title insurance companies defend against lawsuits attacking the title or, in the case of a covered loss, reimburse the insured up to the policy limit.

The same FAQ says title insurance protects against losses from ownership problems that arose before you bought the property but were not known at the time you bought it. It also says title insurance doesn't insure against fire, flood, theft, or any other type of property damage or loss, and doesn't guarantee that you will be able to sell your property or borrow money on it.

TDI's tip sheet, What is title insurance?, gives three examples of problems that existed before a purchase: unpaid property taxes, fraud or forgery of previous paperwork, and a spouse or unknown heir who claims they own the property. The FAQ says title insurance agents check for problems by looking at public records, including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, and maps.

Put simply, a title policy looks back at the history of the property, where a home policy looks ahead to what might happen to the building.

Is title insurance required in Texas?

Texas does not require title insurance, according to TDI's FAQ, which also says the lender will require a loan policy, while TDI's Loan Policy page says most lenders will. The FAQ answers the question in two sentences: "Texas does not require title insurance. The lender will require you to buy a Loan Policy of Title Insurance to protect their interest."

The Loan Policy page's wording is that most lenders will require a loan policy as a condition of the mortgage. That page also says the loan policy is issued to the mortgage lender, protects the lender's interest in the property until the borrower pays off the mortgage, and covers up to the amount of the principal on your loan.

The owner's policy protects the homeowner and the loan policy protects the rights of the lender, according to TDI's tip sheet. So a loan policy that a lender requires is written for the lender, and an owner's policy is a separate purchase.

Our guide on whether home insurance is required in Texas covers the same question for the other policy in a closing file.

The two title policies and how the loan policy is priced

Texas title insurance comes in two types, an owner's policy and a loan policy, according to TDI's FAQ. An owner's policy lasts as long as you or your heirs own the land, per TDI's Owner’s Policy page, and loan policies remain in effect until you repay the loan, per its Loan Policy page.

The price of the loan policy depends on whether an owner's policy is bought with it. The Loan Policy page puts it this way: "When an owner’s policy and a loan policy are purchased at the same time, the loan policy is issued at a discounted price of $100, plus any fees for endorsements required by the lender." Both that page and the FAQ go on to say that if you decide not to purchase an owner's policy, you will pay full price for the loan policy. The FAQ's version of the $100 sentence does not mention the fees for endorsements required by the lender.

In practice, this means declining an owner's policy changes the price of the loan policy as well. If you are weighing that choice, you can ask your title agent for the loan policy price with an owner's policy and without one, so that you compare the two totals.

What TDI says about title premiums

Title insurance rates in Texas are regulated, and TDI's FAQ says: "All title companies will charge the same premium for a policy." Rates are based on the property's sale value, the same answer says. Can you get a discount on the price of your policy? The FAQ answers no, because the premium rate is set by TDI and each title agent is required to charge the same premium for a policy. On what the cost is based on, TDI's tip sheet separates the two policies: the owner's policy on the property's sale price and the loan policy on the amount of the loan.

TDI's pages give different example figures, so the date of each page matters. The FAQ, last updated March 19, 2024, gives a basic premium for a $50,000 property and a $100,000 property and gives no effective date for those examples. TDI's rate chart, Texas Title Insurance Basic Premium Rates, lists basic premiums for rates effective March 1, 2026, by policy face amount, and is the later-dated of the two.

For a policy above $100,000, the rate chart gives a calculation and worked examples, including a basic premium of $1,612 for a $268,500 policy at the rates effective March 1, 2026. The rate chart does not say whether its figures describe an owner's policy or a loan policy, and the Loan Policy page gives separate pricing for a loan policy purchased at the same time as an owner's policy: $100, plus any fees for endorsements required by the lender. These are TDI's published figures as the pages stood on October 1, 2026. They are examples, and your title agent can give you the figure for your purchase.

What does the premium include? In Texas, per the FAQ, it includes charges for additional services such as the title search, the title examination, and closing the transaction, and you only pay the title policy premium once, at the closing of the sale. TDI's Owner’s Policy page adds a qualifier: you pay for title insurance only once, when you buy the policy, unless you decide later to add more coverage. A homeowners premium is paid every year, according to the tip sheet, which our guide on escrow and your mortgage walks through.

Since TDI says the premium is the same from one title company to the next for a policy, comparing companies on the premium alone will not show a difference. The costs that can differ are covered in the next section.

Which closing costs can differ between title agents?

Escrow fees and closing costs around a Texas title policy can differ between title agents. TDI's FAQ says you can shop around for cheaper escrow fees, or closing costs, and that these differ between agents. There may be differences in some closing cost fees, in the words of TDI's tip sheet.

What are the extra charges? Most title companies add them for things like tax certificates and escrow fees, recording fees, and delivery expenses, according to the FAQ, which suggests reviewing any extra charges carefully and asking for documentation of the true cost of these services. You may ask to see your closing papers in advance and may have an attorney attend the closing with you, the same answer says.

If two title companies give you different totals, the list of fees is the place to compare them. Steps you can take:

• Ask for the closing papers in advance. The FAQ says you may ask to see them.
• Ask for documentation of the extra charges. The FAQ names tax certificates, escrow fees, recording fees, and delivery expenses as examples.
• Compare the fee lines one by one. The FAQ says escrow fees and closing costs differ between agents.

Who picks the title company?

In Texas, you may choose the title company, according to TDI. The FAQ says: "You may choose any title company you want; you don’t have to use a company selected by a real estate agent, builder, or lender." Your real estate agent, builder, or lender may recommend a title company, but you can choose any company you want, per TDI's tip sheet.

On licensing, the FAQ says you should always buy from a licensed company. To verify a license, it says, you can call TDI's Consumer Help Line at 800-252-3439 or check online. If you buy from an unlicensed company, the FAQ warns, your claims could go unpaid.

The TDI pages above describe a recommendation as a recommendation, with the choice left to you.

What the title commitment does

In a Texas purchase, the title commitment comes before closing and the title policy is issued after closing, according to TDI's FAQ. The commitment says that a title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems, the same answer explains.

What does the commitment do? Per the FAQ, it lists potential issues, exclusions, or exceptions, and alerts the buyer to issues that exist and could cause problems in the future. It does not guarantee that there are no current issues or that none will arise in the future. TDI's suggestion there is to discuss how to clear potential issues with the title agent, and it notes you may want to review potential issues with a lawyer.

Why read it carefully? Because, the FAQ explains, these items can become exclusions or exceptions under Schedule B of your policy. It defines the terms: "Exceptions and exclusions are items not covered by the policy."

On the policy wording, title policy forms in Texas are standardized, most of the policy language is the same regardless of which company sells the policy, and title agents are required to use the standardized forms, according to the FAQ. The parts that may be changed are the property description in Schedule A, the Exceptions in Schedule B, and the Exclusions. You can request corrections if you notice an error, the same answer says, and the agent may be able to remove an exception if a title problem is cleared up or if you buy additional coverage.

The FAQ also suggests checking the policy's legal description of the land against your survey, and says: "Title insurance does not protect against boundary disputes with your neighbor, unless you purchase additional coverage."

For a buyer, the commitment lists items that can become exceptions or exclusions in the policy, so reading it before closing gives you time to ask the title agent about any of them.

What TDI says a title policy doesn't cover

A Texas title policy has general exclusions, and TDI's FAQ says a title policy generally won't cover mistakes or defects, financial issues, or rights issues. The FAQ lists ten items under that answer. Credify has grouped them below into four plain-language groups, and the grouping is ours.

• Defects created later or known to you. The FAQ lists defects that are created after the policy is issued, and defects that you create or had knowledge of, among the things a title policy generally won't cover. You can ask the title agent whether anything you already know about the property appears on the commitment.
• Mortgage, tax and assessment matters. Problems that arise because of your failure to pay your mortgage, and certain taxes and assessments, are on the same list of things a title policy generally won't cover. You can ask the title agent which taxes or assessments are shown as exceptions for your property.
• Rights that other people may hold. The list of things a title policy generally won't cover includes losses resulting from rights claimed by someone else occupying the land, for which the FAQ notes the title company may need to inspect the property and there may be a charge for the inspection. It also includes homestead, community property, or survivorship rights of a policyholder's spouse, and claims from other people who may have certain rights if your property is near a body of water or has a river or stream flowing through it. You can ask whether an inspection is planned and what it would cost.
• Land-use rules and restrictions. A title policy generally won't cover violations of building and zoning ordinances and other laws and regulations related to land use, land improvements, land division, and environmental protection, per the FAQ. The same list has problems that arise from failure to obey applicable laws or restrictive covenants that were disclosed to you, disclosed restrictive covenants limiting how you may use the property, and condemned land, unless a condemnation notice appeared in the public record on the policy date or the condemnation occurred before the policy date. TDI suggests requesting copies of restrictions and having your attorney explain them.

The word "generally" is TDI's, and the exceptions and exclusions on your own policy depend on what appears on your commitment. If an item above describes your purchase, you can raise it with the title agent or your own attorney before closing.

If someone files a lien or claims an interest in your property after you buy, the FAQ says to notify your title company immediately and that failure to do so could jeopardize your claim. It says to contact the underwriter listed on the policy and follow their claim-filing procedures.

How title insurance fits with home insurance

Title insurance and home insurance sit in the same Texas closing file and cover different things. TDI's tip sheet says title insurance protects your ownership of the property and is paid one time, when you close on the sale, while homeowners insurance protects you from losses due to fire, weather, other types of property damage, or theft and is paid every year.

On home insurance in general, TDI's Home insurance guide says that if you still owe money on your home, your lender will require you to have home insurance. That guide is about home insurance and does not set a closing deadline.

Home insurance is a separate purchase from title insurance. You can ask your lender what proof of coverage it needs and when.

Our guide on home insurance when buying or selling a home in Texas covers the sequencing. If the house is older or the roof has age on it, home insurance for older homes and home insurance with an old roof cover those topics. If you're building, home insurance while building a house covers the coverage that runs during construction.

Credify is an independent licensed insurance agency, and Texas home insurance is Credify's area of expertise. Credify does not sell title insurance. This page exists because the title insurance question comes up in the middle of a home purchase, when the home insurance question comes up too.

What to do with this

These are steps you can take when title insurance comes up in a Texas home purchase. The facts inside each step come from the TDI pages linked above.

• Raise who pays during negotiation. TDI's FAQ says the buyer and seller may negotiate who pays the premium.
• Ask your title agent for two loan policy figures. TDI's Loan Policy page says the loan policy is $100, plus any fees for endorsements required by the lender, when it is purchased at the same time as an owner's policy, and full price if you decide not to purchase an owner's policy.
• Compare the fees. TDI's FAQ says all title companies will charge the same premium for a policy, and that escrow fees and closing costs differ between agents.
• Ask to see the closing papers in advance. You may ask, per TDI's FAQ.
• Check the license. The Consumer Help Line, 800-252-3439, is one way TDI's FAQ gives to verify that a company is licensed.
• Read the title commitment, including Schedule B. Items on the commitment can become exclusions or exceptions under Schedule B of your policy, according to TDI's FAQ.
• Check the legal description against your survey. TDI's FAQ says title insurance does not protect against boundary disputes with your neighbor unless you purchase additional coverage.
• Take questions about restrictions to your own attorney. Having your attorney explain restrictive covenants is TDI's suggestion in the FAQ.
• Ask your lender about home insurance. You can ask what proof of coverage it needs and when.

Key facts

• TDI's Title insurance FAQ says the buyer and seller may negotiate who pays the title insurance premium.
• The premium rate is set by TDI, each title agent is required to charge the same premium for a policy, and rates are based on the property's sale value, according to the same FAQ.
• Texas does not require title insurance and the lender will require a loan policy, per TDI's FAQ, while TDI's Loan Policy page says most lenders will require one as a condition of the mortgage.
• When an owner's policy and a loan policy are purchased at the same time, the loan policy is issued at a discounted price of $100, plus any fees for endorsements required by the lender, and you pay full price for the loan policy if you decide not to purchase an owner's policy, according to TDI's Loan Policy page.
• TDI's FAQ, last updated March 19, 2024, gives example basic premiums of $496 for a $50,000 property and $832 for a $100,000 property, while TDI's rate chart, Texas Title Insurance Basic Premium Rates, lists $465 and $780 for policy face amounts of $50,000 and $100,000 at rates effective March 1, 2026.
• You can shop around for cheaper escrow fees, or closing costs, which differ between agents, per TDI's FAQ.
• TDI's FAQ says you may choose any title company you want and that you can verify a company's license by calling 800-252-3439.
• Title insurance does not protect against boundary disputes with your neighbor unless you purchase additional coverage, and items on the title commitment can become exclusions or exceptions under Schedule B of your policy, according to TDI's FAQ.

Sources: Texas Department of Insurance, Title insurance FAQ (last updated March 19, 2024), What is title insurance?, Owner’s Policy, Loan Policy, Texas Title Insurance Basic Premium Rates and Home insurance guide. This page is general information, not legal advice; for a question about your own purchase, speak to your attorney or contact the Texas Department of Insurance.

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