Legal Question in Real Estate Law in Texas

Re: title policy

A "title policy" is a type of insurance policy. The purpose is to verify for the purchaser, and to insure the purchaser, that he is receiving a good, clear title to the property from you.

You or the purchaser will need to contact a title insurance company in your county and give them the legal description and survey of your property. The company will research the deed records of the county, verify the title you have to the property, determine any easements or legal restrictions on the property, and then give you and the purchaser a "title commitment" describing the title policy they will issue.

Title insurance policies can be complicated because of various exclusions and exceptions which the title insurance company will carve out of the policy. However, in Texas, title insurance companies and the rates they can charge are regulated by the Texas Insurance Commission so policies from different companies will be very similar.

Usually, the purchaser of a piece of property will have his attorney review the title commitment to make sure that there are no title questions which need to be resolved prior to closing.

Your contract with the purchaser, or your negotiations with him, will determine who pays for the title policy.