Title Insurance In Texas: Coverage, Cost, And Timing

Buying a home in McKinney or anywhere in Collin County is a big step. You want clear answers about what title insurance covers, how much it costs, and when you actually get your policy. You also want to know what can slow things down and how to keep your closing on track.

This guide breaks down owner and lender policies, standard exceptions, Texas pricing rules, common endorsements, and the local timeline from commitment to final policy. You will also see common curative items in Collin County and how title companies resolve them. Let’s dive in.

What title insurance covers

Title insurance protects you from covered losses tied to defects in the title that existed on the policy date. There are two main policies in a Texas home purchase.

Owner’s policy vs. lender’s policy

• An owner’s policy protects you, the owner, up to the policy amount, which usually equals the purchase price. Covered risks can include forged documents, recording errors, undisclosed liens, or missing heirs.
• A lender’s policy protects the lender’s interest up to the loan amount. It does not protect your equity.

Both policies focus on defects that existed at the policy date. They indemnify you for covered losses and provide a defense for covered claims, subject to the policy terms and exceptions. They do not insure you against future changes in title unless a specific endorsement adds limited coverage.

What is typically covered

• Forged signatures or invalid deeds
• Errors in the public record or improper recording
• Undisclosed liens such as judgment, tax, or mechanic’s liens
• Improper marital or spousal releases

What is typically not covered

• Zoning or building code issues
• Matters already in the public record that appear as exceptions in the commitment
• Rights of parties in possession unless insured by endorsement
• Unrecorded easements or boundary matters unless specifically insured
• Encumbrances you create after you buy the home

Standard exceptions you will see in Texas

Your title commitment and policy include standard exceptions. The exact wording on your commitment controls, so review Schedule B carefully.

Common exceptions include:

• Recorded easements, covenants, restrictions, and rights of way
• Taxes and assessments not yet due and payable
• Rights of parties in possession not shown by public records
• Survey-related exceptions unless removed or reduced with a survey endorsement
• Mineral reservations or severed mineral rights
• Matters created by the insured

Mineral interests are often handled separately in Texas. Many owner policies exclude mineral title unless a specific endorsement or separate analysis applies.

Cost in Texas: how premiums are set

Texas uses promulgated rates for title insurance. That means insurers follow state-approved rate schedules to calculate premiums. There is very little room for negotiation on the premium itself.

• The owner’s premium is based on the purchase price, using tiered state-approved rates.
• The lender’s premium is based on the loan amount.
• Endorsements add cost, and each has its own filed price.
• Title company closing fees, escrow fees, and recording charges are separate from the insurance premium and can vary by provider.

Who pays the premium in Texas

Customarily, the seller pays for the owner’s policy in Texas and the buyer pays for the lender’s policy. This is local custom and is negotiable in the purchase contract. Always check your contract to confirm your arrangement.

Credits and discounts you may see

• Simultaneous issue credit: When the owner and lender policies are issued at the same closing, the combined premiums can be reduced by a state-approved credit.
• Reissue rate: If a qualifying prior policy exists, a reissue discount may apply under Texas Department of Insurance guidance. Whether it applies depends on the prior policy and the insurer’s rules.

If you want exact premium amounts for a McKinney or Collin County home, your title company will apply the Texas rate schedule, then add endorsement charges and closing fees.

Endorsements to consider in Collin County

Endorsements expand coverage to fit your property and loan. Your lender may require specific endorsements.

• Survey endorsement: Reduces or removes certain survey exceptions, subject to underwriter approval. You will typically need a current survey for this endorsement.
• Homestead endorsement: Addresses homestead-related matters that can affect title in Texas.
• Restrictions or restrictive covenants endorsements: Provide limited coverage tied to recorded community rules and restrictions.
• Zoning or municipal-related endorsements: Limited protection around permitted uses, based on the endorsement form and underwriter approval.

Endorsements carry additional fees. Review your commitment with your title company, lender, and agent to decide which endorsements make sense for your situation.

Timeline in McKinney and Collin County

The title process follows a predictable sequence, although timing can vary by file and title company.

From contract to final policy

1. Contract executed. The buyer and seller sign the agreement. The title company is selected and receives the order.
2. Title search and commitment. The title company searches the public record and issues a title commitment. This is often delivered within a few days to a couple of weeks, depending on complexity and workload.
3. Review and curative. The commitment lists exceptions and requirements. The title company coordinates payoff statements, releases, affidavits, and other items needed before closing.
4. Curative work. Any exceptions that must be resolved are addressed, such as lien releases, judgments, or missing signatures.
5. Closing and recording. You sign documents, funds are disbursed, and documents are recorded with the Collin County Clerk.
6. Final policy issuance. After recording and final confirmations, the title insurer issues and delivers your policies.

Commitment vs. policy

A commitment is a promise to issue a policy if its conditions are met. It is not coverage. Coverage under the final policy is effective as of the policy date and subject to the policy terms and exceptions. Some title companies provide an interim binder at closing, then send the final policy after recording.

When you receive your policy

Lender policies are often issued at or shortly after closing, once the loan is funded and recorded. Owner policies are typically finalized and delivered after recording and after all curative work is complete. Delivery can take from a few days to several weeks after closing, depending on recording and release timelines.

Local recording practices

In Collin County, title companies aim for same-day or next-day recording if documents arrive before the county’s cutoff time. Holidays, high volume, or document issues can delay recording. Delayed lien releases can also affect how quickly your owner’s policy is finalized and delivered.

Common curative issues in Collin County

Curative work resolves exceptions so your policy can be issued with the coverage you expect. Here are frequent items and how they are handled.

Judgment and tax liens

• Issue: Recorded judgments or delinquent property taxes must be satisfied or released.
• Curative: Obtain payoff statements, pay the balances, and record releases. Title companies may escrow funds until the release posts to public record.

Existing mortgages and payoff timing

• Issue: The seller’s mortgage must be paid off and released. Some lenders take time to send the release.
• Curative: The title company obtains an official payoff, sends payoff funds, and follows up for the recorded release. Funds may be held in escrow until the release records.

Name discrepancies and heirs

• Issue: Mismatched names, missing spousal signatures, or estates in probate.
• Curative: Affidavits, corrective deeds, certified probate documents, or, in complex cases, a quiet title action. Underwriters may accept corrective documentation when adequate evidence exists.

Easements and rights of way

• Issue: Recorded easements can affect use and access; unrecorded easements can surface during a survey.
• Curative: Recorded easements are usually excepted unless specifically insured. A survey endorsement or negotiations with the seller may help address unrecorded items when possible.

Survey gaps and boundary issues

• Issue: No recent survey or visible encroachments.
• Curative: Order a new ALTA/NSPS survey. If approved by the underwriter, add a survey endorsement to reduce or remove certain survey exceptions. Corrective actions or boundary agreements may be needed.

Mineral reservations

• Issue: Mineral rights can be severed from surface rights in Texas.
• Curative: Most owner policies exclude mineral title unless specifically endorsed. Additional endorsements or separate legal analysis may be required if mineral coverage is requested.

HOA and assessment items

• Issue: Unpaid assessments or community restrictions.
• Curative: Obtain an HOA estoppel letter, pay or escrow dues, and review recorded covenants and restrictions. Standard exceptions for restrictions usually remain unless specifically modified by endorsement.

How to avoid surprises

A little preparation keeps your closing calm and predictable.

• Order title early. As soon as the contract is executed, open title so the commitment and curative review can start.
• Ask for a survey plan. If the seller cannot provide a recent survey, order one early. This helps you evaluate a survey endorsement and avoid delays.
• Read Schedule B. Highlight any exceptions that affect your plans and ask what will remain after closing.
• Coordinate with your lender. Confirm any required endorsements so costs and timing are clear.
• Plan for payoffs and releases. If you are selling, request payoff statements early and understand release timelines.
• Expect escrow holdbacks if needed. If a release or document is pending, the title company may hold funds and issue the policy after recording.

Guidance for first-time buyers

• Understand what is insured. Title insurance covers defined risks tied to the policy date. It is different from homeowner’s insurance.
• Separate premium from fees. The insurance premium follows Texas rates. Settlement, escrow, and recording fees are separate and can vary.
• Budget for endorsements. Your lender may require certain endorsements. Ask for a fee quote before closing.
• Keep your documents. Save a copy of the commitment, closing statement, and final policy for your records.

What to do next

If you have a signed contract, open title quickly and request the commitment as soon as it is ready. Review Schedule B with your title officer and your agent. Confirm who is paying for the owner and lender policies, which endorsements you need, and whether a survey is required. If an issue appears, ask how it will be cured and whether a holdback or evidence of release is needed.

If you want help navigating the process in McKinney or greater Collin County, connect with a local expert who manages details from contract to keys. Schedule Your Complimentary Consultation with Melissa Manemann to move forward with confidence.

FAQs

Who usually pays for title insurance in a Texas home sale?

• Customarily the seller pays the owner’s policy and the buyer pays the lender’s policy, but this is negotiable and set in the purchase contract.

When will I receive my final owner’s policy after closing in McKinney?

• After recording and completion of curative items, delivery often takes from a few days to several weeks, depending on releases and county processing.

How are Texas title insurance premiums calculated?

• The owner premium is based on purchase price and the lender premium on loan amount, using Texas promulgated rate schedules, plus endorsements and separate closing fees.

What is a title commitment versus a title policy?

• The commitment is a promise to issue a policy if conditions are met; the policy provides coverage as of the policy date, subject to terms and listed exceptions.

Do I need a new survey to address survey exceptions?

• Often yes; a current survey is typically needed for a survey endorsement that reduces or removes certain survey-related exceptions, subject to underwriter approval.

What happens if a judgment lien appears during the title search?

• The title company will obtain a payoff, arrange payment at closing, and pursue a recorded release before or shortly after issuing the final policy.