Title Insurance In Texas: A Cypress Buyer Guide

Buying a home in Cypress is exciting, but the paperwork around closing can feel like a maze. One term you will hear a lot is title insurance. You want to know what it actually covers, what it costs in Texas, and whether you really need it. This guide breaks it all down in plain English so you can protect your investment and move toward a smooth closing. Let’s dive in.

What title insurance covers in Texas

Title insurance protects you from past title problems connected to the property that could impact your ownership after you close. Common covered risks include:

• Forged or defective deeds
• Undisclosed heirs or missing signatures in past transfers
• Unknown liens or judgments, including unpaid taxes or contractor liens
• Recording mistakes or other public record errors
• Fraud or impersonation affecting previous transfers

There are also limits. Title insurance generally does not cover:

• Future issues created after closing
• Ordinary property wear-and-tear or structural problems
• Zoning violations unless you add a specific endorsement
• Problems you knew about and accepted
• Some boundary or encroachment issues unless covered by a survey or endorsement

If you want a quick consumer overview, the Consumer Financial Protection Bureau explains title insurance basics.

One-time premium, long-term protection

You pay for title insurance one time at closing. There is no monthly premium. An owner’s policy stays in effect for as long as you own the property, and usually protects your heirs after you. A lender’s policy protects the lender until the mortgage is paid off.

Policies follow standard formats and include:

• Schedule A: who is insured, policy amount, and legal description
• Schedule B: exceptions from coverage like easements or recorded restrictions
• Schedule C or requirements: items that must be cleared before the policy is issued

Owner’s policy vs. lender’s policy

Both policies sound similar, but they protect different interests.

• Owner’s policy. Protects your equity and your ownership rights, typically up to the purchase price. It is optional from the lender’s point of view but strongly recommended if you want your equity protected against covered title defects.
• Lender’s policy. Protects your lender’s lien position up to the loan amount. Your lender almost always requires this as a loan condition.

A practical note for your budget: when owner’s and lender’s policies are issued together at the same closing, Texas allows a discount on the combined premium. Ask your title company about the simultaneous issue discount.

For more background on policy types and standards, you can review the American Land Title Association.

How pricing works in Texas

In Texas, title insurance premium rates are set by the state. That means the base premium for a given purchase price is consistent. Endorsements, extended coverage, and any eligible discounts can affect your final numbers. You can explore how Texas regulates title insurance through the Texas Department of Insurance.

Key takeaways:

• The premium is a one-time cost paid at closing.
• Rates are regulated, which makes costs more predictable.
• Discounts may apply when owner’s and lender’s policies are issued together.

Cypress closing basics and local roles

In the Houston area, including Cypress, title insurance companies commonly act as the escrow agent. They examine the title, issue the title commitment, hold and disburse funds, and coordinate closing. The Harris County Clerk maintains the official land records. After closing, the title company typically handles recording with the county.

• Contracts: In most residential transactions, parties use standard forms from the Texas Real Estate Commission. Those forms outline how the title process works, who selects the title company, and who pays for various costs.
• Recording: You can learn about land records and recording at the Harris County Clerk.

Who usually pays for the owner’s policy in Cypress

Texas custom often has the seller paying for the owner’s title policy, and this is common across the Houston area. That said, it is not guaranteed. The sales contract and your negotiation determine who pays. Confirm what your contract says and ask your agent or title company what is typical for your specific neighborhood or price point.

Surveys, mineral rights, and HOA items to watch

Cypress buyers frequently see these items in their title commitments:

• Surveys and boundary matters. Lenders commonly require a recent ALTA/NSPS-type survey. If you rely on an older survey or do not have one, the title company can list broad survey exceptions. Boundary and encroachment coverage often requires a survey and, in some cases, a survey endorsement.
• Mineral rights. In Texas, mineral rights are often severed. Many properties in Harris County have mineral reservations or oil and gas leases of record. Title commitments usually note these as exceptions. This can impact surface use and value. Review any mineral exceptions and ask questions if you see leases or reservations.
• Easements and restrictive covenants. Most Cypress subdivisions have recorded deed restrictions, HOA rules, and utility easements. These are standard Schedule B exceptions. Read them closely so you know what you can and cannot do with the property.
• Homestead and community property. Texas homestead rules and marital status can affect who needs to sign. The title examiner will flag these items and list any required signatures.

What to review before closing

Use this quick checklist to stay ahead of issues:

• Get your title commitment early and read Schedules A and B.
• Confirm who pays for the owner’s and lender’s policies per your contract.
• Ask for an existing survey or order a new ALTA/NSPS survey.
• Compare the survey to the property to spot encroachments or fence-line issues.
• Review Schedule B exceptions for easements, restrictions, tax liens, or judgments.
• Ask about any mineral reservations or oil and gas leases listed as exceptions.
• Confirm closing and recording logistics with the title company.
• Request cost estimates for any endorsements you plan to add.

If you want a plain-language refresher on how title insurance fits into closing costs, the CFPB has a helpful overview.

Endorsements Cypress buyers often consider

Endorsements add or clarify coverage for specific risks. Availability and cost vary, so ask your title company which options fit your property and loan program.

• Survey or encroachment endorsement. Addresses certain boundary and encroachment issues when supported by a current survey.
• Zoning endorsement. Limited protection related to zoning matters noted by the municipality.
• Mechanic’s lien endorsement. Helps protect against some contractor liens that might not appear in public records.
• Mineral or royalty endorsements. If offered and applicable, can address concerns around severed minerals or leases.
• Homestead or community property endorsements. Used when marital or homestead issues need to be accounted for.
• Access or environmental endorsements. Considered when legal access or past land use could be a concern.

Red flags that should pause your purchase

Call out and resolve these items before you proceed to closing:

• Unreleased mortgages or liens that are not shown as paid or cleared
• Pending probate or unclear heirs tied to the chain of title
• Unrecorded easements or unclear legal access
• Significant mineral reservations or active oil and gas leases
• Multiple large liens, judgments, or federal tax liens
• Active legal actions involving the property

Simple timeline from contract to closing

While every deal is unique, most Cypress transactions follow this general flow:

1. Contract executed. The contract specifies who chooses the title company and who pays for title premiums.
2. Title search begins. The title company examines Harris County records and issues a title commitment.
3. Review and clear requirements. Any liens, payoffs, signatures, or other items on the commitment’s requirements list must be resolved.
4. Survey obtained or approved. You provide an existing survey or order a new one as needed.
5. Final numbers. You receive closing disclosures that include title premiums, endorsements, escrow fees, and recording fees.
6. Closing and recording. You sign, funds are disbursed, and the title company submits documents to the county for recording.

The bottom line for Cypress buyers

An owner’s title policy is one of the most practical ways to protect your equity from hidden past issues. Texas regulates rates, which keeps base premiums predictable, and many Houston-area sellers cover the owner’s policy by custom. Still, the best protection comes from reading your title commitment early, asking questions, and selecting endorsements that fit your property.

When you are ready for local guidance and a smooth, well-managed closing, reach out to Erica Stietenroth - The Realty Chick. We will help you review your title commitment, coordinate the right endorsements, and keep your Cypress transaction on track.

FAQs

What does title insurance cover for Texas buyers?

• It covers past title defects like forged deeds, undisclosed heirs, unknown liens, and recording errors, but not future issues or property condition problems.

What is the difference between owner’s and lender’s policies?

• The owner’s policy protects your equity and ownership rights, while the lender’s policy protects the lender’s mortgage lien up to the loan amount.

Who usually pays for the owner’s policy in Cypress?

• It is common for the seller to pay in the Houston area, but it depends on your contract and negotiation, so always confirm your agreement in writing.

How long does an owner’s title policy last?

• It typically lasts for as long as you own the property and usually protects your heirs after you.

Will title insurance cover boundary or encroachment issues?

• Only if supported by a survey and, in some cases, a specific endorsement that adds coverage for boundary or encroachment concerns.

Are mineral rights covered by standard title insurance?

• Standard policies often list mineral reservations and oil or gas leases as exceptions, so you should review these closely and ask about available endorsements.