Title insurance in Texas protects against losses from ownership problems that existed before you bought the home but were not known at closing, such as a forged deed, an unknown heir, or an old lien. It is not homeowners insurance. If you finance your purchase, the mortgage company will require a loan policy that protects its interest. An owner’s policy is the separate policy that protects you. Washington is talking about title insurance this month, but for a Texas home purchase, the basics still come from the state and your TREC contract.
TL;DR
- Texas does not require title insurance, but the company funding your loan will require a loan policy. The owner’s policy is what protects your ownership.
- Texas sets title insurance premiums. Every title company charges the same premium for the same policy, but escrow fees and other charges can differ.
- The October 22, 2026 executive order on title insurance is about certain refinances, not home purchases, and it does not change owner’s policies.
- Read your title commitment as soon as it arrives. Schedule B lists what the policy will not cover, and Schedule C lists what has to be fixed before the policy is issued.
- Your TREC contract gives you a limited number of days to object in writing to title and survey problems. Miss the deadline and you may waive the objection.
Why title insurance is in the news this fall
On October 22, 2026, the White House issued Executive Order 14438, “Decreasing Housing Costs for the American People.” Section 4 tells the director of the Federal Housing Finance Agency (FHFA) that, if he determines it is in the best interests of Fannie Mae, Freddie Mac, and the public and consistent with safety, soundness, and the law, he may direct the two companies to turn their title acceptance pilot into an ongoing nationwide program. Under that program, Fannie Mae or Freddie Mac could accept an automated title review or another FHFA-approved title-risk assessment instead of a loan policy on eligible refinances. The order also asks the director to consider expanding eligibility and adding providers, and it requires passing any savings through to borrowers. The Federal Register published it on October 28.
Two points matter for Texas buyers. First, the order covers eligible refinance transactions, not home purchases. Second, it is about the policy that protects the mortgage company. It says nothing about owner’s policies, which protect you.
Not everyone welcomes the change. The American Land Title Association (ALTA) said it supports making homeownership more affordable but warned that removing title protections can shift risk to consumers. ALTA said 59% of the title companies it surveyed saw seller impersonation fraud attempts in 2025, up from 28% in its 2024 survey. The pilot itself started in 2024.
Earlier this month, Fannie Mae’s Selling Guide Announcement SEL-2026-09 (October 7, 2026) also widened the use of attorney opinion letters in place of title insurance. Among other changes, it removed the exclusion for Texas Section 50(a)(6) home equity loans and for loans signed under a power of attorney. Those rules apply to the companies that fund loans. They don’t mean a Texas buyer can skip title work on a purchase.
Owner’s policy vs. loan policy
The Texas Department of Insurance (TDI) describes two kinds of title policies.
- Loan policy: protects the interest of the company funding your mortgage. Texas does not require title insurance, but that company will require a loan policy.
- Owner’s policy: protects you, the buyer. Under the standard TREC resale contract, it is issued for the sales price.
The loan policy does not protect your ownership interest. The Consumer Financial Protection Bureau explains that most mortgage companies require a policy that protects the amount they lend, and that an owner’s policy can help protect your own investment in the home. When you buy an owner’s policy and a loan policy at the same time, TDI says the loan policy is issued at a discounted price.
What title insurance can cover
TDI lists examples of title defects, including:
- Documents that are invalid because of forgery, fraud, or impersonation, or that were signed under an invalid power of attorney
- Ownership claims by undisclosed or missing heirs
- Undisclosed or unrecorded easements and problems with access to the land
- An improper prior foreclosure
- Liens from a previous owner’s unpaid mortgage, judgment, tax, special assessment or homeowners association charge, and certain contractor and mechanic’s liens
If a claim is covered, the title company defends you in court and pays covered losses up to the policy amount. If someone files a lien or claims an interest in your property after you close, notify your title company right away.
What title insurance does not cover
Title insurance does not cover fire, flood, theft,t or other damage to the home. TDI also lists exclusions, including defects created after the policy is issued, defects you created or knew about, certain taxes and assessments, a spouse’s homestead or community property rights, zoning and building code violations, and restrictive covenants that were disclosed to you. A standard policy does not protect against a boundary dispute with a neighbor unless you buy additional coverage.
How title insurance in Texas is priced
Texas is different from many states. According to the TDI title insurance FAQ, TDI sets title premiums; every title company charges the same premium for the same policy, and you cannot get a discount. The premium is based on the property’s value; you pay it once at closing, and in Texas it includes the title search, the title examination, and closing the transaction. TDI ordered a 6.2% reduction in the basic premium schedule, effective March 1, 2026 (Commissioner’s Order 2025-9697).
The state does not set other charges. TDI says you can shop for escrow fees and closing costs, and that most title companies add charges for items such as tax certificates, recording, and delivery. Ask for an itemized list and documentation of those charges.
A few more rules from TDI:
- You can choose your title company. You don’t have to use one chosen by a real estate agent, builder, or mortgage company. Section 9 of the Real Estate Settlement Procedures Act (RESPA) bars a seller from requiring you to use a specific title insurance company as a condition of the sale.
- Use a licensed company. Selling title insurance in Texas without a license is illegal. You can verify a license online or through TDI’s Consumer Help Line.
- Who pays is negotiable. The buyer and seller can negotiate who pays the premium.
That negotiation appears in Paragraph 6A of the TREC resale contract, where a box indicates whether the owner’s policy is furnished at the seller’s or the buyer’s expense. Read which box is checked in your contract instead of assuming. Our guide to lowering closing costs in Texas covers other fees you can compare.
The title commitment: read it before closing day
TDI explains that the title commitment comes before closing and the policy is issued after closing. The commitment says the title company is willing to issue a policy under certain conditions, provided certain problems are fixed. It lists potential issues, exclusions, and exceptions, and it does not guarantee that there are no problems.
Texas title policy forms are standardized, so most of the language is the same from company to company. The parts that change from one home to the next are the ones to read closely:
Schedule A: the property description
Check the legal description against your contract and your survey. TDI recommends this step to confirm that you’re buying what you agreed to.
Schedule B: exceptions
Schedule B items are not covered by the policy. Paragraph 6A of the TREC resale contract lists the standard exceptions a buyer accepts, including restrictive covenants common to the subdivision, standby fees, taxes and assessments, liens from your own financing, utility easements in the plat, marital rights, waters and tidelands, a TDI-approved minerals exception, and the survey exception for boundary discrepancies, shortages in area, and encroachments. The contract also includes a box indicating whether that survey exception will remain as written or be amended to read “shortages in area,” and who pays for the change. TDI notes that an agent may be able to remove an exception if the title problem is cleared up or if you buy additional coverage.
Schedule C: requirements
Schedule C lists what must be resolved before the title company will issue the policy, such as problems the seller has to fix. Under Paragraph 6D of the contract, these requirements are not waived even if you miss your own objection deadline.
Surveys and the T-47 affidavit
Paragraph 6C of the TREC resale contract requires a survey by a registered professional land surveyor acceptable to the title company and the company funding your loan. The contract offers three options, and your offer checks one:
- The seller provides an existing survey plus a Residential Real Property Affidavit (T-47) or Declaration (T-47.1), forms promulgated by TDI. If the title company or the company funding your loan will not accept them, the buyer orders a new survey at the expense stated in the contract.
- The buyer obtains a new survey at the buyer’s expense.
- The seller provides a new survey at the seller’s expense.
When the survey arrives, look at the practical picture: fences, driveways, sheds, pools, easements, and anything that crosses a property line. Ask about anything you do not understand while you still have time to object. A home inspection answers a different question: the house’s condition. Our guide to the option period and home inspection in Texas covers that part of the timeline.
Your TREC title deadlines
The TREC One to Four Family Residential Contract (Resale), TREC No. 20-19 (form dated 05-04-2026) sets the title timeline in Paragraph 6. Confirm the blanks in your own signed contract.
- Commitment (6B): within 20 days after the title company receives a copy of the contract, the seller must furnish the commitment and, at the buyer’s expense, copies of the documents behind the exceptions. If they are late, the time is automatically extended up to 15 days or 3 days before closing, whichever is earlier. If they still are not delivered, the buyer may terminate, and the earnest money is refunded.
- Your objections (6D): you may object in writing to defects, exceptions, or encumbrances shown on the survey or in the commitment, other than the standard exceptions. You must object by the earlier of the closing date or the number of days written in the contract after you receive the commitment, the exception documents, and the survey. If you do not object in time, you waive the right to object.
- Seller’s cure period (6D): the seller doesn’t have to spend money, but the contract gives the seller 15 days after receiving timely objections to cure them, and the closing date is extended as needed. If they are not cured, you have 5 days after the cure period ends to terminate and have your earnest money refunded, or waive the objections.
- Attorney review (6E): the contract advises the buyer to have the commitment promptly reviewed by an attorney of the buyer’s choice because of the time limits on objections.
Title charges on your Loan Estimate and Closing Disclosure
Title charges appear on the Loan Estimate you receive after you apply and on the Closing Disclosure you get before closing. Before you sign, check:
- The owner’s policy. Does it match who pays under Paragraph 6A of your contract?
- The loan policy. Is it shown, and is it being issued together with the owner’s policy?
- Other title and escrow charges. Escrow fees, tax certificates, recording, and delivery are separate from the premium and can differ by title company.
- Names and property details. Your name, sales price, address, and legal description should match your contract.
Ask questions before the signing appointment, not at the table. And treat wire instructions as a security risk: confirm any instructions by phone using a number you found yourself, not one in an email. Our guide to wire fraud when buying a home in Texas explains how.
Title insurance do’s and don’ts
Do
- Read the commitment and exception documents the day they arrive.
- Put your Paragraph 6D objection deadline on your calendar.
- Compare the legal description in the commitment with your survey and contract.
- Ask for an itemized list of escrow, tax certificate, recording, and delivery charges.
- Use a licensed title company and call an attorney of your choice about any exception you do not understand.
Avoid
- Assuming the loan policy protects your ownership.
- Skipping Schedule B because it looks like standard legal language.
- Waiting until closing day to ask about an easement, encroachment, or Schedule C item.
- Sending a wire based only on emailed instructions.
FAQ: title insurance in Texas
Is title insurance in Texas required?
Texas does not require title insurance. If you finance the purchase, the company funding your loan will require a loan policy. Whether you also get an owner’s policy, and who pays for it, depends on your contract.
Can I shop for a lower title insurance premium in Texas?
No. TDI sets the premium, so every title company charges the same premium for the same policy. You can compare escrow fees and other charges, which vary by company.
Does the new executive order mean I can skip title insurance on a purchase?
No. Executive Order 14438 directs FHFA to consider expanding a program for certain eligible refinances, and it addresses the policy that protects the mortgage company. It does not apply to purchases or to owner’s policies.
Who pays for the owner’s title policy in Texas?
It is negotiable. Paragraph 6A of the TREC resale contract has a box for seller’s expense or buyer’s expense. Check your signed contract.
What happens if a title problem shows up after closing?
Notify your title company right away and follow the claim instructions in your policy. Whether a problem is covered depends on the policy, its exceptions, and the facts.
Plan your Texas closing with a mortgage broker
Your title work, survey, and financing must all come together on the same closing date. The Texas Mortgage Pros is a mortgage broker. We can help you compare home purchase loan options from the wholesale mortgage companies we work with, subject to qualification and program availability, and walk you through the title and closing charges on your Loan Estimate. Buying for the first time? Start with our first-time homebuyer loans page. Already own and thinking about a refinance? We can explain how title work fits into that process too.
Questions about title insurance in Texas and your loan? Call (877) 280-4833, apply online, or contact us.
Official sources
- The White House: Executive Order 14438, Decreasing Housing Costs for the American People (October 22, 2026; Federal Register, October 28, 2026) (linked above)
- American Land Title Association: White House Executive Order Includes Expansion of Title Acceptance Pilot; ALTA Stresses Consumer Protections (October 22, 2026) (linked above)
- Fannie Mae: Selling Guide Announcement SEL-2026-09 (October 7, 2026) (linked above)
- Texas Department of Insurance: Title Insurance FAQ (linked above)
- Texas Department of Insurance: Commissioner’s Order No. 2025-9697 (title insurance basic premium hearing) and the basic premium chart effective March 1, 2026 (tdi.texas.gov)
- Texas Real Estate Commission: One to Four Family Residential Contract (Resale), TREC No. 20-19 (form dated 05-04-2026), Paragraph 6 (linked above)
- Consumer Financial Protection Bureau: What is owner’s title insurance? (linked above)
Wikipedy is not affiliated with or endorsed by the Texas Department of Insurance, the Texas Real Estate Commission, the Consumer Financial Protection Bureau, the Federal Housing Finance Agency, Fannie Mae, Freddie Mac, the American Land Title Association or the White House, and this is not a government document.
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