A lien from years ago
A contractor, a lender or the IRS says the property still owes them money from before you owned it.
TITLE POLICY
The protection that outlives the deal.
Before a property changes hands, someone confirms the person transferring it actually owns it, free of old liens, unpaid taxes, or a claim nobody knew about. The policy is proof that check was done, and coverage if something from the past ever surfaces anyway.
Contract walkthrough
What it protects you from
The problems you'd
never see coming.
Someone else claims it
An heir nobody knew about, a forged signature in the chain, or a deed that was never recorded right.
Unpaid taxes
Back taxes on the property that should have been paid before it changed hands.
Most of these get caught and cleared before closing. The policy covers the ones that weren't findable.
What you get
Two policies.
Only one covers you.
Owner's policy
Covers you, for as long as you own it.
Protects the buyer's ownership. Paid once at closing. Coverage lasts as long as you or your heirs own the property.
TDI forms T-1R (1 to 4 family homes) · T-1 (everything else)
Lender's policy
Covers the bank, not you.
Most lenders require one to protect their loan. It pays the lender if there's a problem. It doesn't protect your equity.
TDI forms T-2 · T-2R (short form residential)
Common add-on coverage
Endorsements
Restrictions, encroachments, minerals
Covers issues with deed restrictions, a fence or building over the line, and mineral rights damage.
T-19 · T-19.1
HOA communities
Extra coverage for homes in a planned development.
T-17
Property taxes
Covers taxes for the current year being handled correctly.
T-30
Environmental liens
Covers a government environmental cleanup lien.
T-36
Home equity loans
Required coverage when you borrow against your home.
T-42 · T-42.1
How it works
You'll know what's in the way early.
- 01
The search
The property's records get pulled and checked: past owners, liens, taxes, judgments and recorded restrictions.
- 02
The commitment
You get a written list of what was found and what has to be cleared before closing. Anything that could hold you up shows up here.
- 03
The policy
Once everything is cleared and the deal closes, the policy is issued and sent to you.
What it costs
Texas sets the price.
Title insurance premiums in Texas are set by the state, so the policy costs the same at every title company. It's paid once, at closing. Your contract says who pays for the owner's policy, and the fee estimate shows every line well before closing day.
What people ask
Straight Answers.
The lender's policy only protects the lender. Without an owner's policy, a claim against your title comes out of your pocket.