Title insurance and surveys are two of the less visible parts of buying a home, and two of the line items that surprise buyers most at closing. Both protect you against problems that are hard to see: a lien you did not know about, a claim to the property from someone else, a fence that is not on the lot line, or a neighbor's building that sits partly on your land. This guide explains what each one does, how they show up in a Texas contract, and what to ask before you sign. Rules and costs can change, so confirm details with your title company and agent.
THE BASICS
What Title Insurance Is
When you buy a home, you want to own it free of surprises. A title company researches the property's public records, looking for liens, unpaid taxes, ownership disputes, and other claims, and then insures against covered problems that were missed. You pay a one-time premium at closing, and the coverage continues as long as you or your heirs own the property. It protects against hidden defects in the title, not against future events or issues that the policy specifically excludes.
TWO POLICIES
Owner's Policy vs. Lender's Policy
There are usually two policies. The lender's policy protects the mortgage company and is required if you finance. The owner's policy protects you, and it is optional but strongly recommended. In Texas, the standard residential contract has the seller pay for the owner's policy and the buyer pay for the lender's policy, though this is negotiable, so check what your contract says. Title insurance premiums in Texas are set by the state, so the premium is generally the same no matter which title company you use. Companies differ in service, escrow fees, and responsiveness instead.
THE COMMITMENT
Reading the Title Commitment
Early in the process, the title company issues a commitment that lists what it will insure, what it requires before closing, and what it will exclude. The exceptions deserve attention.
- Easements for utilities, drainage, or access that may limit where you can build or put a pool
- Restrictive covenants and HOA rules that affect how you can use the property; see the HOA communities guide
- Liens, unpaid taxes, or judgments that the seller must clear before closing
- Mineral or water rights that were reserved by a prior owner
THE SURVEY
What a Survey Shows
A survey is a map of the lot made by a licensed surveyor. It shows the boundaries, the location of the house and other improvements, easements, and sometimes encroachments, such as a fence or shed that crosses a line. For a home on a lot with a pool, an addition, or a shared fence, a current survey can reveal problems before you own them. It also matters more on larger lots and rural property; see our land buying questions.
THE CONTRACT
Who Orders and Pays for the Survey
The Texas residential contract gives options for the survey: the seller may provide an existing survey, and in some cases the buyer orders a new one at their own cost. A title company may accept an existing survey if the seller signs an affidavit that nothing has changed, or it may require a new one. If the survey exception is not amended, you may be insured against only what a survey would not show. Confirm which option your contract uses, and decide early whether a new survey is worth the cost for your situation.
BUDGETING
What It Adds to Your Closing Costs
Title charges and survey costs are part of your total costs at closing. The lender's policy, escrow and recording fees, and a new survey, if you need one, are the usual buyer-side items, and an owner's policy is paid by the seller unless your contract says otherwise. See Closing Costs in Texas for the full breakdown, and seller closing costs for the other side of the table.
WATCH-OUTS
Common Problems and How to Handle Them
Most title searches come back clean, but when they do not, you want time to respond. Liens can usually be paid off from the seller's proceeds at closing, while boundary or easement problems may need negotiation or an amendment. Raise questions during the option period or the objection period rather than at the closing table, and keep the timing in mind; see From Contract to Keys. Also, be careful with wire instructions from anyone, and verify them by phone with a number you already trust.
NEXT STEP
Ask Before You Close
If you are buying in New Braunfels, Todd Spencer can introduce you to local title companies, explain your commitment line by line, and help you decide whether a new survey makes sense. Start with the buyer's guide.
Common questions
Frequently asked questions.
Do I need title insurance in Texas?
If you finance, your lender requires a lender's policy. An owner's policy is optional but recommended, since it protects your own investment against covered title problems that were not found in the records.
Who pays for title insurance in Texas?
In the standard Texas residential contract, the seller pays for the owner's policy and the buyer pays for the lender's policy, but this can be negotiated. Check your contract.
Can I shop around for title insurance?
You can choose your title company. Premiums are set by the state, so the price of the policy is generally the same, and the differences are service quality and fees such as escrow charges.
What does a survey tell me?
A survey shows the property's boundaries, the position of the house and other improvements, and easements or encroachments. It can reveal issues such as a fence on the wrong side of the line or a structure that crosses an easement.
Who pays for the survey?
It depends on the contract. The seller may provide an existing survey, or the buyer may pay for a new one. Confirm the contract's survey option and ask your title company whether an existing survey will be accepted.
What happens if the title search finds a problem?
Many issues, such as liens, can be cleared at or before closing from the seller's proceeds. Others, such as boundary or easement conflicts, may require negotiation, so raise any concern within the objection deadlines in your contract.
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