In Texas, who pays for the owner’s title policy is negotiable. The TREC resale contract has a box for “Seller’s” or “Buyer’s” expense, and the buyer pays for the lender’s policy. The cost is set by the state, so every title company charges the same basic premium: under the Texas Department of Insurance rates in effect since March 1, 2026, a $350,000 owner’s policy costs $2,015. Here’s how the math works, what each policy covers, and what changes on a new build.
Brock Bremmer | U.S. Air Force Reserves Veteran | Real Estate Agent | eXp Realty | San Antonio Metro Area
Buyer and Seller Specialist
Also see: The Texas Option Period | How to Sell Your Home in San Antonio | First-Time Buyer Guide
What Does Title Insurance Cover?
The Texas Department of Insurance (TDI) describes title insurance as protection against financial loss from defects in title, meaning ownership problems that came up before you bought the home but weren’t known at closing. Examples TDI lists include forged documents, ownership claims by undisclosed or missing heirs, documents not properly recorded, and lien issues such as contractor’s and mechanic’s liens.
There are two policies:
- Owner’s policy: Protects you, the buyer, up to the purchase price
- Loan policy: Protects your lender. TDI notes that Texas doesn’t require title insurance by law, but your lender will require a loan policy
Texas Insurance Code Section 2704.051 says that when a title company issues a lender’s policy on a home that’s being sold, it must also issue an owner’s policy to the buyer. Under Section 2704.052, the buyer can turn down the owner’s policy only by signing a written rejection on the state’s form at or before closing.
Who Pays for Title Insurance in Texas?
On TREC’s One to Four Family Residential Contract (Resale), Paragraph 6A has a checkbox: the seller furnishes an owner’s policy at “Seller’s” or “Buyer’s” expense. TDI says the buyer and seller may negotiate who pays.
- Owner’s policy: Whoever is checked in Paragraph 6A. Either side can pay; it’s a negotiating point, not a rule
- Loan policy and lender endorsements: Listed as a buyer’s expense in Paragraph 12 of the resale contract
- Escrow fee: Split between buyer and seller in Paragraph 12
- Survey amendment: Paragraph 6A(8) lets the parties choose whether the boundary exception gets amended, and at whose expense
How Much Does Title Insurance Cost in Texas?
TDI sets the basic premium, so it doesn’t change between title companies. For policies from $100,001 to $1,000,000, the formula in the March 1, 2026 rate chart is: subtract $100,000, multiply by 0.00494, round to the nearest dollar, and add $780.
| Sales Price | Owner’s Policy Basic Premium | Survey Amendment (5%) |
| $250,000 | $1,521 | About $76 |
| $350,000 | $2,015 | About $101 |
| $450,000 | $2,509 | About $125 |
A few more promulgated rules affect the total:
- Simultaneous loan policy: Under TDI Rate Rule R-5, when an owner’s and loan policy are issued together and the loan doesn’t exceed the price, the loan policy premium is $100
- Survey amendment: Under Rate Rule R-16, amending the area and boundaries exception on a residential owner’s policy costs 5% of the basic premium, with a $20 minimum. On a loan policy it’s $0
- What isn’t fixed: TDI says escrow fees and other closing charges, like tax certificates, recording, and courier fees, vary by company. Those are worth comparing
Can You Choose Your Own Title Company?
Yes. TDI says you can pick any title company and don’t have to use one chosen by a real estate agent, builder, or lender. Section 9 of the federal Real Estate Settlement Procedures Act (RESPA) bars a seller from requiring you to buy title insurance from a particular company as a condition of the sale.
That matters most on new construction. Many large builders have affiliated title companies. Lennar, for example, lists Lennar Title among its affiliates. Builder incentives are sometimes tied to the builder’s preferred title company or lender, so read the incentive terms before you decide. The premium is the same anywhere, but the incentive might not be.
How Does Title Work on a New Construction Home?
- Who pays: TREC’s New Home Contract has the same “Seller’s or Buyer’s expense” choice in Paragraph 6A. Many builders use their own purchase agreements, so read who pays for the owner’s policy and the survey amendment
- Restrictions and HOA: Your title commitment lists the subdivision’s restrictive covenants and easements. Read them during your review period
- Liens: TDI lists contractor’s and mechanic’s liens among the lien issues that can cause title defects. On a home that was just built, ask the title company how it handles those at closing
I cover more questions to ask before signing with a builder in 5 Questions You MUST Ask Before Buying a New Construction Home in San Antonio on my YouTube channel.
What Should You Review in the Title Commitment?
The commitment comes before closing and lists the conditions for issuing the policy. Under Paragraph 6B of the TREC resale contract, the seller must furnish it within 20 days after the title company receives the contract. TDI says these are the parts of the policy that can change, so review them carefully:
- Schedule A: The property description. Check it against your survey and ask for corrections if something is wrong
- Schedule B: Exceptions the policy won’t cover, like easements and restrictive covenants
- Commitment conditions: Items the seller has to fix before the title company will issue the policy
Paragraph 6D of the contract lets you object in writing to title problems within the number of days filled in on the contract, or by closing if that’s earlier. Missing that deadline waives the objection, so put it on your calendar the day the commitment, exception documents, and survey arrive.
Frequently Asked Questions: Title Insurance in Texas
Is title insurance cheaper at some Texas title companies?
No. TDI sets title insurance premiums, and every title company has to charge the same basic premium for the same policy. Escrow fees and other closing charges do vary, so compare those instead.
Do I need an owner’s title policy if I’m getting a mortgage?
Your lender requires a loan policy, and Texas law requires the title company to issue an owner’s policy with it on a home that’s sold. You can decline the owner’s policy only by signing a written rejection at or before closing.
Ready to Buy or Sell With Clear Title?
Brock Bremmer with eXp Realty is a U.S. Air Force Reserves veteran who has helped buyers and sellers close 120+ homes across the San Antonio metro. He helps buyers and sellers negotiate who pays closing costs, review title commitments and survey items, and keep contract deadlines on track for resale and new construction.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 📅 Schedule a free consultation
Also see: New Construction Inspections | Builder Lenders vs Outside Lenders | Property Taxes in San Antonio | VA Loan Guide for San Antonio
Sources: TDI, Texas title insurance basic premium rates effective March 1, 2026; TDI Basic Manual, Rate Rules R-5 and R-16; TDI, title insurance FAQ; Texas Insurance Code Chapter 2704; TREC One to Four Family Residential Contract (Resale), Paragraphs 6 and 12; TREC New Home Contract (Incomplete Construction); Lennar community page, Lennar affiliates (viewed October 23, 2026).