Title Insurance in Texas: What Dallas Buyers Should Know

Buying a home in Dallas County should feel exciting, not confusing. Yet when title insurance shows up on your Closing Disclosure, it can raise questions fast. You want to protect your ownership and keep closing costs in check. You also want to know what is required in Texas and what is optional.

In this guide, you’ll learn what title insurance does, how it works in Texas, what Dallas-area buyers typically pay, and how the process fits into your closing timeline. You’ll also get a practical checklist and the most common North Texas title red flags to watch. Let’s dive in.

What title insurance covers

Title insurance protects you from covered defects in ownership that already exist at or before closing. If someone later claims a right to your property based on a past issue that falls under your policy, the insurer typically provides legal defense and covers losses up to your policy limits.

There are two policies in a typical purchase:

• Owner’s policy. Protects you, the buyer, up to the purchase price.
• Lender’s policy. Protects the lender up to the loan amount. It does not protect you as the owner.

You pay a single, one-time premium at closing. There are no recurring premiums for title insurance.

Common protections an owner’s policy provides:

• Unknown liens, such as tax, judgment, or mechanics’ liens missed in public records.
• Fraud or forgery in prior deeds.
• Undisclosed heirs or probate issues that cloud ownership.
• Errors in public records or improper recording of documents.

What title insurance is not:

• It is not a home warranty. It does not cover future physical defects like HVAC, plumbing, or appliances.
• It usually does not cover zoning or code changes after closing unless an endorsement adds that coverage.
• It does not cover items listed as exceptions in the title commitment.

How title insurance works in Texas

Texas regulates both title insurance rates and policy forms through the Texas Department of Insurance. That means the base premium is set statewide. For the same purchase price, you will see the same base owner’s premium whether you buy in Dallas, Irving or Richardson. Differences in total cost come from endorsements, closing and recording fees, any available discounts, and who pays for the owner’s policy.

Title search and the title commitment

Once your contract is executed and escrow opens, the title company searches public records and issues a title commitment. The commitment outlines:

• Requirements to satisfy before the policy can be issued, such as lien payoffs.
• Exceptions the policy will not cover, like recorded easements or restrictions.
• A schedule of documents examined.

Read the commitment closely. Ask your agent or title officer to explain any exceptions or easements and how they might affect use, access, or future improvements.

Common endorsements in Texas

Endorsements modify or extend coverage for specific risks. Common examples include:

• Survey coverage for certain boundary matters when you accept an existing or new survey.
• Plat endorsements when relying on a recorded subdivision plat.
• Restrictions or HOA-related endorsements.
• Zoning or access endorsements when the lender requires confirmation of access.

Each endorsement has a separate fee and will be listed on your closing statement.

Reissue and simultaneous issue discounts

If there is a recent owner’s or lender’s policy for the property, your title company may apply a reissue or simultaneous issue credit when issuing new policies, subject to company practice and Texas rules. Ask for any available credits when you request your estimate.

Dallas-area costs and who pays

The main cost is the one-time owner’s title insurance premium, based on the purchase price and Texas’s promulgated rate schedule. You will also see other title-related fees on your closing statement:

• Title search and examination
• Commitment and document preparation
• Endorsements requested by your lender or you
• Closing or escrow fee charged by the title company for conducting the closing
• Courier and recording fees paid to the county clerk
• Lender’s policy premium if you finance, based on the loan amount

Important Texas points for Dallas buyers:

• Texas has no state or local real estate transfer tax.
• The base owner’s premium does not vary by city. Dallas, Irving/Las Colinas, and Richardson follow the same statewide premium schedule.
• Recording fees come from the county clerk and can differ by county. Parts of Richardson are in Dallas County and parts are in Collin County, so recording fees and procedures can vary by location.

Who typically pays the owner’s policy? It depends on local custom and your contract. In some Dallas-area transactions the buyer pays; in others the seller covers some or all of it. Do not assume. Confirm with your agent and the signed contract.

How to get an estimate: Your title company can provide a good-faith title quote after the contract is opened. For financed purchases, exact figures appear on the Closing Disclosure a few days before closing.

Practical cost drivers for Dallas buyers:

• Purchase price
• Endorsements your lender or you request
• Whether a new survey is needed
• Any title issues that require extra work or lien payoffs
• Location in Dallas County versus Collin County, which affects county recording fees

Timeline from contract to policy

You will follow a fairly standard process across Dallas County:

1. Open escrow and order title. This usually happens as soon as the contract is executed.
2. Title search and examination. The title company reviews public records for liens, judgments, easements, and claims.
3. Title commitment issued. You and your agent should review it promptly and ask questions.
4. Cure of defects. The title company, seller, or you address any liens, judgments, or other requirements. If issues are complex, this step can extend the timeline.
5. Closing and settlement. You sign documents, pay the premium and fees, and the deed and loan documents are recorded.
6. Policy issuance. The lender’s policy is typically issued quickly after recording. The owner’s policy is delivered after all requirements are satisfied, often within a few weeks.

Where closings occur: Most Dallas-area closings take place at title company offices or attorney-led closing locations affiliated with a title company. Location does not change the title premium but may affect the escrow or closing fee.

Documents you should receive:

• Title commitment or preliminary report
• Closing Disclosure for financed purchases with itemized title premiums and fees
• Final owner’s title policy after recording, or a notice that it will be issued soon

Common North Texas title issues

Here are issues that appear frequently in Dallas-area transactions:

• Unreleased mortgages or judgments from prior owners
• Past due property taxes or municipal tax liens
• Easements and access concerns in both older lots and newer master-planned communities
• HOA or POA covenant enforcement, plus any pending assessments or litigation
• Boundary disputes or encroachments where no recent survey exists
• Probate or estate transfers that need extra documentation

Red flags to raise with your title examiner or agent:

• The title commitment shows unresolved liens or judgments
• Exceptions for unrecorded rights or claims that suggest potential unrecorded interests
• Gaps in the chain of title or multiple deeds recorded for the same property
• Survey exceptions when you plan improvements near lot lines

Questions to ask your agent and title company:

• Who pays the owner’s policy under our contract?
• What endorsements are included or recommended for this property and lender?
• Are there exceptions or easements that limit access or use?
• Do I need a new survey, or can we rely on the seller’s existing survey?
• Are there outstanding liens or probate issues that must be cleared before closing?
• When will the owner’s policy be delivered after closing?
• Can I see a sample title commitment and policy form?

Dallas, Irving, and Richardson differences

The base premium does not change by city because Texas sets the rates statewide. What does change across Dallas, Irving/Las Colinas, and Richardson are practical line items and the deal structure:

• County recording fees differ, especially where Richardson crosses county lines into Collin County.
• Local special districts or assessments can affect payoffs and closing requirements.
• Neighborhood norms vary on whether the buyer or seller pays for the owner’s policy. Your agent will advise based on current market conditions and the specifics of your contract.

Translation: When you compare closing costs across these cities, expect differences from property price, endorsements, county recording fees, and any special assessment payoffs, not from the state title premium schedule.

Buyer checklist for Dallas County

Before you write an offer:

• Ask your agent what is customary in the neighborhood for paying the owner’s policy
• Confirm which county you are in if you are shopping Richardson, since recording fees depend on county

After contract execution:

• Request the title commitment as soon as it is issued and review exceptions with your agent or title officer
• Ask whether the seller has a recent survey; discuss if a new one is advisable
• Request HOA documents if applicable and look for pending special assessments or litigation
• Review your Closing Disclosure early and confirm title premium and endorsement line items

At and after closing:

• Keep copies of your closing package and final policy in a safe place
• Verify your deed and loan are recorded
• Confirm you receive the owner’s policy after recording

The bottom line for Dallas buyers

Title insurance is a one-time purchase that protects your ownership from covered defects tied to the property’s past. In Texas, the base premium is set statewide, so your focus should be on the details that do vary: endorsements, who pays per your contract, county recording fees, and clearing any issues in the title commitment. When you review the commitment early and ask the right questions, you reduce surprises and keep your closing on track.

If you would like a clear walkthrough of your title commitment, help comparing closing costs in Dallas, Irving/Las Colinas, or Richardson, or guidance on who typically pays in your target neighborhood, reach out to the team at Carter Signature Properties. Start your Signature Experience with a plan that gets you from contract to clear title with confidence.

FAQs

What is title insurance in Texas?

• Title insurance protects you from covered losses due to past defects in ownership and usually includes legal defense. It is a one-time premium paid at closing.

Do Dallas buyers pay the owner’s policy?

• It depends on local custom and your contract. In some Dallas-area deals the buyer pays, in others the seller pays. Confirm the allocation in your executed agreement.

How much does title insurance cost in Dallas County?

• The owner’s premium is based on the purchase price using Texas’s statewide rate schedule. Total costs vary with endorsements, closing fees, and county recording charges.

What endorsements are common for Texas purchases?

• Common endorsements include survey or boundary coverage, plat endorsements, restrictions or HOA-related endorsements, and zoning or access endorsements.

How long after closing will I get my owner’s policy in Dallas?

• After recording and once all requirements are satisfied, the owner’s policy is typically delivered within a few weeks, while lender policies are issued sooner.

Is there a real estate transfer tax in Texas?

• No. Texas does not charge a state or local real estate transfer tax.

Do I need a new survey for a Dallas County purchase?

• Your lender and title company will advise. You may be able to use a seller’s existing survey if acceptable, or you might need a new one depending on the property and lender.

What should I look for in the title commitment as a Dallas buyer?

• Focus on requirements to be cleared and exceptions that limit coverage, like easements or restrictions. Ask about any liens, judgments, or access issues before you close.