Title Insurance in Texas: Farmers Branch Guide

Buying in Farmers Branch and feeling unsure about title insurance? You are not alone. Between lender requirements, closing costs, and the title commitment, it can feel like a lot. In a few minutes, you will understand what title insurance does in Texas, who usually pays in the Dallas–Fort Worth area, and how to spot the key items in your title paperwork so you can close with confidence. Let’s dive in.

What title insurance does in Texas

Title insurance helps protect you from financial loss due to title defects that already existed before closing. Think forged documents, unpaid liens that were overlooked, recording errors, or an unknown heir with a claim. It is a one-time premium you pay at closing. The protection lasts as long as you own your home if you buy an owner’s policy.

If you get a mortgage, your lender will require a separate lender’s policy. That policy protects the lender’s interest for the life of the loan. It does not protect your equity, which is why buyers often choose to purchase their own owner’s policy at the same time.

For consumer guidance and regulation details, the Texas Department of Insurance oversees title insurance across the state. You can learn more directly from the Texas Department of Insurance, the Texas Land Title Association, and the American Land Title Association for forms and endorsements.

• Texas Department of Insurance: title insurance consumer resources
• Texas Land Title Association: how title insurance works in Texas
• American Land Title Association: policy forms and endorsements

Owner’s policy vs. lender’s policy

Owner’s policy basics

• Protects your ownership and equity against covered defects that existed before your policy date.
• One-time premium at closing, coverage lasts while you own the property, and in many cases extends to your heirs or certain successors based on policy language.
• Recommended even when your lender requires their own policy.

Lender’s policy basics

• Protects the lender’s loan interest for the amount they lend.
• Required by most mortgage lenders as a condition of financing.
• Coverage declines as you pay down the loan and ends when the loan is paid off.

Simultaneous issue savings

If you purchase an owner’s policy and a lender’s policy at the same time, you often get a reduced combined rate compared to buying them separately. In Texas, rates and available discounts are governed by regulation and insurer rate schedules.

What is covered and what is not

Common covered risks

• Forged, defective, or missing signatures on recorded documents that affect title.
• Recorded but overlooked liens and judgments that existed before your policy date.
• Errors in public records, like incorrect legal descriptions or recording mistakes.
• Unknown heirs making a claim because of probate issues.
• Marital status or spousal signature mistakes that cloud title.

Common exclusions

• Zoning, land-use restrictions, or building code enforcement.
• Unrecorded matters, such as informal boundary disputes, unless specifically insured.
• Environmental contamination and most pollution claims.
• Rights or interests not shown in the public record unless covered by an endorsement.
• Issues created after your policy date, such as new liens you incur.

Texas-specific items to watch

• Mineral rights: In Texas, surface rights and mineral rights can be separate. Standard policies may not cover prior mineral severances. If you have questions, ask about endorsements or a specific mineral-rights search.
• Community property and spousal signatures: Texas is a community property state. Missing spouse signatures or incorrect marital affidavits can delay closing and may appear as requirements in your title commitment.
• Homestead rules: Texas homestead protections affect certain liens and creditor rights. Your title commitment may include related exceptions and requirements.
• Boundary and survey: Surveys matter. Some policies exclude boundary disputes unless you add a survey-related endorsement.

Who usually pays in Farmers Branch

In the Dallas–Fort Worth area, which includes Farmers Branch, local custom often has the seller paying for the owner’s policy. This is not a law. It is a negotiable term in your purchase contract. The borrower typically pays for the lender’s policy, although concessions can shift that. Make sure your offer clearly states who pays which premiums and fees.

How Texas title premiums work

Texas regulates title insurance rates, and premiums are generally based on the purchase price for an owner’s policy and the loan amount for a lender’s policy. Because rates follow published schedules, you can request the exact amount from any title company before you sign your final closing documents. On your Closing Disclosure, these charges appear under title fees and will be collected by the title company at closing.

What your title company does before closing

• Title search and exam: The company searches Dallas County records for deeds, liens, easements, and judgments tied to your property.
• Title commitment: You receive a preliminary report that lists the proposed insured parties, legal description, exceptions, and requirements to close.
• Clearing requirements: The title team may require payoffs of liens, releases of judgments, affidavits, proof of marital status, corrected legal descriptions, or other curative items.

Local records for Farmers Branch properties are held by the Dallas County Clerk and the Dallas Central Appraisal District. For background or updates, visit the Dallas County Clerk and the Dallas Central Appraisal District.

Your title commitment checklist

When you receive the commitment, review these items with your agent and title officer:

1. Schedule A details

• Confirm the proposed insured names and property’s legal description.
• Make sure the sales price and loan amount match your contract and lender documentation.

2. Schedule B exceptions

• Review recorded easements, covenants, or restrictions that will remain after closing.
• Look for any outstanding liens, taxes, or judgments that require payoff or release.
• Note any mineral reservations or rights that may affect your property use.

3. Requirements to close

• Identify what the seller must resolve, such as liens or missing signatures.
• Confirm any affidavits, marital status confirmations, or HOA documents needed.

4. Legal description and survey

• Compare the legal description to your survey. Discrepancies are a common cause of claims.
• Ask about survey-related endorsements to limit boundary exceptions when possible.

Surveys and endorsements to consider

A current survey can reveal encroachments, recorded easements, and improvements that cross boundary lines. Lenders often require a survey and may ask for a survey endorsement to the lender’s policy. You can ask about similar coverage for your owner’s policy. Other endorsements may address access, zoning matters, or certain mineral issues. Not every endorsement is available for every property, so review options with your title agent and lender.

Choosing your title company

Either party can request a specific title company, and both sides must agree. Although rates are regulated, title companies compete on service, responsiveness, and their ability to navigate complex issues. Ask your agent for recommendations, then compare:

• Communication speed and clarity.
• Turnaround times for commitments and curative work.
• Experience with local issues such as HOA payoffs, survey cures, and mineral exceptions.
• Availability of endorsements you may need.

Smart negotiation tips for Buyers in Farmers Branch

• Clarify who pays for the owner’s policy in your initial offer. The local norm often has the seller paying, but it is negotiable.
• Ask the seller to provide a current survey if available, or negotiate who will pay to obtain one.
• Request the title commitment as early as possible so any issues surface well before your option period ends.
• If mineral rights or access concerns matter to you, request the needed endorsements in the contract.

Closing and what happens after

At closing, the title company collects funds, pays off liens, records your deed and the mortgage, and then issues the final title policies. You should receive your owner’s policy after recording and issuance. Timing can vary by company, so keep your closing documents in a safe place until your policy arrives. If you discover a covered title problem later, contact the issuing title insurer and follow the claim instructions in your policy.

For consumer questions or complaints about title insurance in Texas, you can contact the Texas Department of Insurance.

Local, practical guidance for Farmers Branch buyers

Buying in Farmers Branch means your records live in Dallas County, and your transaction will follow Texas rules for rates and policy forms. Pay close attention to Schedule B exceptions, survey notes, and any signs of severed mineral rights or missing spouse signatures. These items are common in North Texas and are often fixable with the right plan and timeline.

If you want help reviewing your title commitment and coordinating with a trusted local title team, reach out. Our team knows how to flag red flags early and keep your closing on track.

Ready to move forward with a smart plan for your Farmers Branch home purchase? Connect with the local team that puts your interests first. Schedule your consultation with Baker Realty Group and let’s map out your next step.

FAQs

Is title insurance required for homes in Farmers Branch?

• Lenders require a lender’s policy for most mortgages. An owner’s policy is optional for you, but it is strongly recommended to protect your equity.

Who typically pays for the owner’s policy in DFW?

• In the Dallas–Fort Worth area, sellers often pay for the owner’s policy by custom. It is negotiable, so make sure your contract states who pays.

How much will an owner’s policy cost in Texas?

• It is a one-time premium based on the purchase price using state rate schedules. Ask your title company for an exact quote before closing.

Will my lender’s policy protect my ownership?

• No. The lender’s policy protects only the lender’s loan interest. You need an owner’s policy to protect your ownership and equity.

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

• After recording and issuance by the title company. Timing varies, so keep your closing documents safe until your policy arrives.