Who picks the title company in Texas, and what happens at closing?

Quick answer: In Texas you can use any licensed title company. Your agent, builder or lender can recommend one, but you don't have to use it, and federal law says a seller can't make the sale depend on using a certain title company. The title insurance premium is the same at every company because the Texas Department of Insurance sets the rates. Other closing fees, like escrow fees, can differ. Who pays for the owner's policy is negotiated in the contract.

By Matt Pruitt, NMLS 846749 · Last updated

Who picks the title company in Texas?

You can. The Texas Department of Insurance says you can choose any title company you want. Your agent, builder, or lender may recommend one. You don’t have to take it.

There’s a federal rule too. TDI points to Section 9 of RESPA, which says a seller can’t make the home sale depend on using a specific title insurance company.

In practice, the title company gets named in the contract. On the TREC resale contract, it’s in Paragraph 6A. So if you have a preference, say so before the offer goes in.

Whoever you pick, make sure they’re licensed. TDI’s help line is 800-252-3439, and TDI has licensing lookups on its site.

Why is title insurance the same price everywhere?

Because the state sets it. TDI regulates title insurance rates, and every company has to charge the same premium for the same policy. You can’t get a discount on the premium.

The premium also covers more than the policy. TDI says it includes the title search, the title examination, and closing the transaction. You pay it once, at closing.

TDI set new basic premium rates that took effect March 1, 2026, a reduction from the prior rates. Your title company will quote yours from the current chart.

What can differ between companies is the other fees. TDI lists examples like escrow fees, tax certificates, recording fees, and delivery charges. Those are worth comparing. Ask for them in writing.

What’s the difference between an owner’s policy and a loan policy?

Two policies, two people protected.

Texas doesn’t require title insurance by law. But your lender will require a loan policy. The owner’s policy is the one that protects you if someone later claims an ownership problem from before you bought.

Title insurance isn’t homeowners insurance. It doesn’t cover fire, hail, or theft. It covers problems with the ownership title, like an unpaid lien from a prior owner, a forged document, or an heir who claims they own the house.

Who pays for the owner’s policy?

It’s negotiated. TDI says the buyer and seller can negotiate who pays the premium. On the TREC resale contract, Paragraph 6A has a box: seller’s expense or buyer’s expense. Your agent will talk with you about it when you write the offer.

What is a title commitment?

It’s the title company’s promise to issue a policy, with conditions. On the TREC resale contract, the seller has to furnish it within 20 days after the title company gets the contract.

The commitment lists what the policy won’t cover and what has to be fixed before closing. Read it. Items on it can become exceptions in your policy, which means they’re not covered.

You get a set time after receiving the commitment and the survey to object in writing to problems. Your agent tracks that deadline. If something on it confuses you, ask the title company or a real estate attorney.

The survey is part of this too. If the seller is using an old survey with a T-47, the title company decides if it’s acceptable. More in the T-47 article.

What does the title company do between contract and closing?

I work with the title company on the loan side, so the loan documents and the numbers line up for closing.

What happens on closing day?

You sign at the title company, or wherever they set up the signing. Bring the ID they ask for. Your loan documents, the deed, and the settlement statement all get signed.

If you’re doing a Texas home equity loan, like a cash-out refinance on your homestead, there’s an extra rule. The Texas Constitution says it can only close at the lender’s office, an attorney’s office, or a title company. More on that on my Texas cash-out refinance page.

After closing, the policy coverage starts right away. TDI says you’ll get the paper copy of the policy about 30 days later. Keep it with your house papers.

How do I protect myself from wire fraud?

Real estate closings are a target. TDI’s tips:

If you ever get an email saying wire instructions changed, stop. Call the title company at a number you already have, and call me at 817-873-6288.

What I’d do

This isn’t legal advice. For questions about your title policy or commitment, check with your title company or a real estate attorney. For the loan side of closing, call me at 817-873-6288. If you’re buying around Fort Worth, I can tell you what to expect on timing.

Common questions

Can I pick my own title company in Texas?

Yes. TDI says you can choose any title company you want. You don't have to use one picked by a real estate agent, builder, or lender. Make sure it's licensed by TDI.

Can I get a discount on title insurance in Texas?

Not on the premium. TDI sets the rates and every company charges the same premium. Other fees, like escrow fees, can differ between companies.

Who pays for the owner's title policy in Texas?

It's negotiated. On the TREC resale contract, Paragraph 6A has a box for whether the seller or the buyer pays for the owner's policy.

Is title insurance required in Texas?

Texas doesn't require it. Your lender will require a loan policy to protect its interest. The owner's policy protects you.

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