In Texas, the buyer and seller negotiate which party pays for each title policy, per TDI. Both premiums are one-time charges collected at closing under rates set by the Texas Department of Insurance.
Use the cash-to-close calculator to see how title insurance affects your total funds needed at closing.
Who Pays at Closing in Texas
- Owner’s title policy: Protects the buyer’s ownership for as long as the buyer or their heirs hold title to the property, per TDI.
- Lender’s title policy: The mortgage lender requires this policy before funding the loan, per TDI. Coverage lasts until the borrower repays the loan.
- Who pays is negotiated: The buyer and seller negotiate who pays the premium, per TDI.
2026 TDI Premium Examples
- $300,000 owner’s policy: $1,768 under the TDI rate schedule effective March 1, 2026. Formula: subtract $100,000 from the policy amount, multiply by 0.00494, round to the nearest dollar, add $780.
- $350,000 owner’s policy: $2,015 under the same schedule.
- $500,000 owner’s policy: $2,756 under the same schedule.
- Simultaneous lender’s policy: $100 when the loan amount does not exceed the owner’s policy amount, per TDI Rate Rule R-5.
What the Premium Includes
- Title search and exam: In Texas, the premium includes charges for the title search, the title examination, and closing the transaction, per TDI.
- Extra charges: Title companies add extra charges for tax certificates, escrow fees, recording fees, and delivery expenses, per TDI. You can shop around for these charges, per TDI.
What Title Insurance Covers
- Covered: Title insurance protects against loss due to title defects, liens, or other similar matters, and claims of ownership by other parties, per TDI.
- Not automatically covered: Boundary disputes with a neighbor require additional coverage, per TDI.
- One-time cost: The title policy premium is paid once, at the closing of the sale, per TDI. The buyer and seller negotiate who pays the premium, per TDI. The owner’s policy lasts as long as the owner or their heirs own the land, per TDI.
Who pays for title insurance in Texas?
The buyer and seller negotiate which party pays for each title policy, per TDI. Both premiums are one-time costs collected at closing.
How much is a title policy in Texas in 2026?
Texas title insurance premiums are set by the Texas Department of Insurance under a rate schedule effective March 1, 2026. An owner’s policy on a $300,000 home costs $1,768. On a $350,000 home, the owner’s policy is $2,015. When the lender’s policy is issued simultaneously with the owner’s policy and the loan amount does not exceed the owner’s policy amount, the lender’s policy premium is $100 under Rate Rule R-5. These are basic premiums before endorsements or extra settlement charges.
Is title insurance required in Texas?
Texas does not require title insurance, per TDI. The lender will require a loan policy of title insurance to protect the lender’s interest, per TDI.
The Bottom Line Up Front
In Texas, the buyer and seller negotiate which party pays for each title policy, per TDI. Under the TDI rate schedule effective March 1, 2026, an owner’s policy on a $350,000 home costs $2,015 and the lender’s policy is $100 when issued simultaneously and the loan amount does not exceed the owner’s policy amount. Each title agent is required to charge the same premium for a policy, per TDI, but title companies can be compared on escrow fees, settlement charges, and service quality. This guide covers the 2026 rate schedule, the simultaneous issue rule, what title insurance does and does not cover, and what to review on your title commitment before closing.
Owner’s Policy vs Lender’s Policy
Two separate title insurance policies exist in a financed Texas real estate transaction. They protect different parties, last for different lengths of time, and cost different amounts. Understanding the distinction matters because each policy protects a different party and costs a different amount.
| Item | Owner’s policy | Lender’s policy |
|---|---|---|
| Who it protects | Buyer and their heirs | Mortgage lender |
| Policy amount | Set at the value of the policy | Up to the amount of the principal on the loan, per TDI |
| Who pays in Texas | Buyer and seller negotiate, per TDI | Buyer and seller negotiate, per TDI |
| Required? | Not required by state law, per TDI | Required by the mortgage lender, per TDI |
| Duration | As long as the owner or heirs own the land, per TDI | Until the borrower repays the loan, per TDI |
| 2026 cost on a $350,000 home | $2,015 under TDI rate schedule | $100 when issued simultaneously, per Rate Rule R-5 |
- Why the owner’s policy matters: The owner’s policy protects against losses from ownership problems that arose before the buyer purchased the property, including fraud, errors or omissions in previous deeds, or forgery of a previous deed, per TDI. The policy lasts as long as the owner or their heirs own the land, per TDI.
- Why the lender’s policy exists: The loan policy is issued to the mortgage lender and protects the lender’s interest in the property until the borrower pays off the mortgage, per TDI. The loan policy protects the lender’s interest, not the buyer’s, per TDI.
- Without a mortgage lender: The lender requires the loan policy, per TDI. For buyer-side charges at closing, see the buyer closing costs in Texas guide.
2026 Texas Title Insurance Costs
Title insurance rates in Texas are regulated, and all title companies charge the same premium for a policy, per TDI. The premium rate is set by the Texas Department of Insurance. The current schedule took effect on March 1, 2026.
Owner’s Policy Premium by Purchase Price
| Purchase price | 2026 TDI basic premium | Calculation |
|---|---|---|
| $200,000 | $1,274 | $100,000 x 0.00494 + $780 |
| $250,000 | $1,521 | $150,000 x 0.00494 + $780 |
| $300,000 | $1,768 | $200,000 x 0.00494 + $780 |
| $350,000 | $2,015 | $250,000 x 0.00494 + $780 |
| $400,000 | $2,262 | $300,000 x 0.00494 + $780 |
| $500,000 | $2,756 | $400,000 x 0.00494 + $780 |
| $750,000 | $3,991 | $650,000 x 0.00494 + $780 |
| $1,000,000 | $5,226 | $900,000 x 0.00494 + $780 |
For policies from $100,001 to $1,000,000 the formula is: subtract $100,000 from the policy amount, multiply the result by 0.00494, round to the nearest dollar, then add $780. Policies up to $100,000 use a separate lookup table published by TDI. Policies above $1,000,000 use different rate tiers with decreasing multipliers.
The Simultaneous Issue Rule
- Rate Rule R-5: When the owner’s policy and lender’s policy are issued simultaneously, bear the same date, cover the same land, the loan amount does not exceed the owner’s policy amount, and the owner’s policy shows the lien or liens insured by each loan policy as an exception, the lender’s policy premium is $100. This applies per loan policy.
- When the loan exceeds the owner’s policy: If the loan amount exceeds the owner’s policy amount, the lender’s policy premium is calculated as the basic rate for the combined loan amount, minus the basic rate for the owner’s policy amount, plus $100 per loan policy.
- What this means: When the owner’s policy and loan policy are purchased at the same time, the loan policy is issued at a discounted price of $100, plus any fees for endorsements required by the lender, per TDI.
- Without an owner’s policy: If you decide not to purchase an owner’s policy, you will pay full price for the loan policy, per TDI.
Endorsements and Additional Coverage
- Area and boundary amendment: The standard policy excepts area and boundary matters. This exception can be amended to delete all except shortages in area, per TDI Procedural Rule P-2. For an owner’s policy on residential property, the amendment costs 5% of the basic premium with a minimum of $20, per TDI Rate Rule R-16. On a $350,000 home with a $2,015 basic premium, the amendment is $101. On a lender’s policy the amendment costs $0.
- What the premium includes: In Texas, the premium includes charges for the title search, the title examination, and closing the transaction, per TDI. Title companies add extra charges for tax certificates, escrow fees, recording fees, and delivery expenses, per TDI.
- What you can compare: Each title agent is required to charge the same premium for a policy, per TDI. You can shop around for escrow fees, tax certificate charges, recording fees, courier and delivery expenses, responsiveness, and familiarity with the county where the property is located, per TDI.
Who Pays by Transaction Type
The buyer and seller negotiate who pays for each title policy, per TDI.
| Transaction type | Owner’s policy | Lender’s policy | Notes |
|---|---|---|---|
| Financed resale purchase | Buyer and seller negotiate, per TDI | Lender requires, per TDI | See the seller closing costs guide. |
| New construction | Buyer and seller negotiate, per TDI | Lender requires, per TDI | The buyer and seller negotiate who pays the premium, per TDI. |
| Refinance | Remains in effect, per TDI | Lender may require, per TDI | Your lender may require a new loan policy if you refinance, per TDI. The original owner’s policy from the purchase remains in effect, per TDI. Under TDI Rate Rule R-8, the credit is calculated on the Basic Premium of the written payoff balance or the original loan amount, using the amount that does not exceed the other: 50% for 4 years or less since the original policy, 25% for over 4 but less than 8 years. The new premium cannot be reduced below the minimum Basic Premium. |
What Title Insurance Covers and Does Not Cover
Title insurance protects against losses from problems that arose before the buyer bought the property, per TDI. It does not cover problems that arise after the buyer takes ownership.
- Covered claims: Title insurance protects against loss due to title defects, liens, or other similar matters, per TDI. It protects against claims of ownership by other parties and losses from problems that arose before the buyer purchased the property, per TDI. Covered matters include fraud, errors or omissions in previous deeds, and forgery of a previous deed, per TDI.
- Not automatically covered: Boundary disputes with a neighbor are not covered by the standard policy unless the buyer purchases additional coverage, per TDI. A title policy will not cover defects created after the policy is issued, defects the buyer creates, failure to pay the mortgage, certain taxes, zoning violations, and disclosed restrictive covenants limiting how the buyer uses the property, per TDI.
- Post-closing issues: The policy covers only defects that existed before or at the time of closing. Problems that arise after the buyer takes ownership fall outside the policy’s scope.
- Policy amount: The buyer is covered for the value of the policy. If the home increases in value over time, the buyer can purchase an increased value endorsement to cover the increase, per TDI.
The Title Commitment
The title commitment comes before closing; the title policy is issued after closing, per TDI. The title commitment lists potential issues, exclusions, or exceptions, per TDI. A title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems, per TDI.
- Schedule A: Contains the property description, per TDI. Verify that the property description and dollar amounts are correct.
- Schedule B: Lists exceptions from coverage, per TDI. Items on Schedule B are risks the final policy will not insure against. If you see an item you do not understand, ask the title officer to explain it before closing.
Who Chooses the Title Company in Texas
You may choose any title company you want; you do not have to use a company selected by a real estate agent, builder, or lender, per TDI. Under Section 9 of the Real Estate Settlement Procedures Act, a seller may not require a buyer to purchase title insurance from a particular company as a condition of sale. Since the base premium is identical at every company, the choice comes down to service quality, ancillary charges, and experience.
- Title-company selection: You may choose any title company you want, per TDI. You do not have to use a company selected by a real estate agent, builder, or lender, per TDI.
- What to compare: Escrow fees, tax certificate charges, recording fees, courier and delivery expenses, responsiveness, and familiarity with the county where the property is located. Each title agent is required to charge the same premium for a policy, per TDI.
- Verify licensing: Confirm that the title company or agent is licensed by the Texas Department of Insurance.
Negotiating Title Insurance Costs
Each title agent is required to charge the same premium for a policy, per TDI. The buyer and seller negotiate who pays each policy, per TDI.
- What you can compare: You can shop around for cheaper escrow fees or closing costs, per TDI. Compare title companies on escrow fees, tax certificate charges, recording fees, courier and delivery expenses, responsiveness, and familiarity with the county where the property is located.
- Use the calculator: Use the cash-to-close calculator to model how title insurance costs affect total funds needed at closing.
Where Title Charges Appear on Closing Paperwork
In covered mortgage transactions, title insurance charges appear on the Loan Estimate and the Closing Disclosure, per the CFPB. These forms do not apply to reverse mortgages, HELOCs, manufactured or mobile home loans not secured by real estate, or certain subordinate homebuyer-assistance loans.
- Loan Estimate: Title service fees are listed in Section B or C of page 2 of the Loan Estimate, per the CFPB. If you choose to purchase owner’s title insurance, it will be listed in Section H of the Loan Estimate, per the CFPB. Use this estimate to budget for title costs before you reach the closing table.
- Closing Disclosure: Title service fees are listed in Section B or C of page 2 of the Closing Disclosure, per the CFPB. Compare it to your Loan Estimate and ask the title company or your lender to explain any differences.
- Buyer closing costs guide: For buyer-side charges at closing, see the buyer closing costs in Texas guide.
Getting Title Insurance From Contract to Closing
For the purchase timeline, see the closing timeline guide.
- Title search: The title agent verifies ownership by looking at public records, including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, and maps, per TDI.
- Title commitment delivery: The title commitment comes before closing, per TDI. It lists potential issues, exclusions, or exceptions. Review it carefully.
- Clearing title: A title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems, per TDI.
- Policy issuance after closing: The title policy is issued after closing, per TDI. The title policy premium is paid once, at the closing of the sale, per TDI.
- Wire fraud verification: Before wiring closing funds, verify the wiring instructions by calling the title company at a phone number you found independently, not from an email.
Frequently Asked Questions
Who pays for title insurance in Texas?
The buyer and seller negotiate which party pays for each title policy, per TDI. Both premiums are one-time costs paid at closing.
How much is title insurance on a $300,000 Texas home in 2026?
Under the TDI rate schedule effective March 1, 2026, the owner’s title insurance policy on a $300,000 home costs $1,768. The lender’s policy is $100 when issued simultaneously with the owner’s policy and the loan amount does not exceed the owner’s policy amount, per Rate Rule R-5. These are basic premiums before endorsements or other settlement charges.
Why is the lender’s title policy sometimes only $100?
TDI Rate Rule R-5 sets the lender’s policy premium at $100 when the owner’s policy and lender’s policy are issued simultaneously, bear the same date, cover the same land, the loan amount does not exceed the owner’s policy amount, and the owner’s policy shows the lien or liens insured by each loan policy as an exception. If the loan amount exceeds the owner’s policy amount, the lender’s policy is calculated differently using the basic rate formula.
Can I choose my own title company in Texas?
Yes. TDI states that you may choose any title company you want and do not have to use a company selected by a real estate agent, builder, or lender. Under Section 9 of the Real Estate Settlement Procedures Act, a seller may not require a buyer to purchase title insurance from a particular company as a condition of sale. Since the base premium is the same at every company, compare title companies on escrow fees, other settlement charges, responsiveness, and experience with your county’s records.
Is owner’s title insurance worth it for a cash buyer?
The lender requires the loan policy, per TDI. Texas does not require title insurance, per TDI. The buyer and seller negotiate who pays for the owner’s policy, per TDI.
Do I need new title insurance when I refinance?
The owner’s policy lasts as long as the owner or their heirs own the land, per TDI, so it remains in effect through a refinance. Your lender may require a new loan policy if you refinance, per TDI. Loan policies remain in effect until the borrower repays the loan, per TDI. Under TDI Rate Rule R-8, the credit is calculated on the Basic Premium of the written payoff balance or the original loan amount, using the amount that does not exceed the other: 50% for 4 years or less, 25% for over 4 but less than 8 years. The new premium cannot be reduced below the minimum Basic Premium.
Does title insurance cover boundary disputes in Texas?
The standard title insurance policy does not cover boundary disputes with a neighbor unless the buyer purchases additional coverage, per TDI. For residential properties, the area and boundary endorsement costs 5% of the basic premium with a minimum of $20, per Rate Rule R-16. On a $350,000 home, that endorsement is $101. Ask the title company about this endorsement before closing if boundary coverage matters to you.
What is a title commitment?
The title commitment comes before closing; the title policy is issued after closing, per TDI. The title commitment lists potential issues, exclusions, or exceptions, per TDI. Schedule A contains the property description, and Schedule B lists exceptions from coverage. Review it carefully and ask the title officer to explain any item you do not understand.
What should I look for on Schedule B?
Schedule B lists exceptions from coverage, per TDI: risks the final policy will not insure against. Items on Schedule B are not covered by your policy. If an exception concerns you, ask the title company whether it can be removed or whether an endorsement is available to address it.
How much does the area and boundary endorsement cost?
For an owner’s policy on residential property, the area and boundary endorsement costs 5% of the basic premium with a minimum of $20, per TDI Rate Rule R-16. On a $350,000 home with a $2,015 basic premium, the endorsement is $101. On a lender’s policy, the amendment costs $0. This amendment changes the area-and-boundary exception to delete all except shortages in area, per TDI Procedural Rule P-2.
Data and Methodology
Title insurance rates in this guide come from the Texas Department of Insurance 2026 Basic Premium Rate Schedule, effective March 1, 2026. The simultaneous issue rule is from TDI Rate Rule R-5 in the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in Texas. The refinance credit rule is from TDI Rate Rule R-8. The area and boundary endorsement rate is from TDI Rate Rule R-16. Coverage and consumer guidance statements cite the TDI title insurance FAQ and the TDI owner’s policy and loan policy consumer pages. Title service fee placement on closing documents cites the Consumer Financial Protection Bureau. Title company selection rights cite TDI and Section 9 of the Real Estate Settlement Procedures Act. No figures from commercial real estate portals, GPT-generated reviews, or unsourced industry estimates are used in this guide.
