Shopping for Title Insurance

No. The premium rate is set by the Texas Department of Insurance. Each title agent is required to charge the same premium for a policy.

In Texas, the premium includes charges for additional services such as the title search, the title examination, and closing the transaction. You only pay the title policy premium once, at the closing of the sale. The buyer and seller may negotiate who pays the premium.

You can shop around for cheaper escrow fees, or closing costs. These differ between agents.

Most title companies add extra charges for things like tax certificates and escrow fees, recording fees, and delivery expenses. Review any extra charges carefully. Ask for documentation of the true cost of these services. You may ask to see your closing papers in advance. You may also have an attorney attend the closing with you.

When an owner’s policy and a loan policy are purchased at the same time, the loan policy is issued at a discounted price of $100. If you decide not to purchase an owner’s policy, you will pay full price for the loan policy.

Title insurance agents will identify problems with the title that need to be corrected before you buy your home or property. Agents check for problems with your title by looking at public records, including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, and maps.

You should always buy from a licensed company. It’s illegal to sell title insurance without a license in Texas. If you buy from an unlicensed company, your claims could go unpaid.

To verify that a company is licensed, call TDI’s Consumer Help Line at 800-252-3439. You can also check online.

You may choose any title company you want; you don’t have to use a company selected by a real estate agent, builder, or lender.

Section 9 of the Real Estate Settlement Procedures Act (RESPA) prohibits sellers from conditioning the home sale on the use of a specific title insurance company. You may contact the Consumer Financial Protection Bureau, who regulates RESPA, if you have a complaint.