Before you sign at the closing table in Texas, you will receive a title commitment. It is not your purchase contract, closing disclosure, or homeowner's insurance policy. It is not a guarantee that title is clean. It is the title company's preliminary agreement to issue a title insurance policy — subject to conditions and exceptions. Most buyers glance at it, set it aside, and trust that everything is fine. That is a mistake. Understanding what the commitment says, and what it deliberately does not cover, is one of the most important things you can do before closing on a Texas property.

What Is a Title Commitment?

A title commitment is a document issued by the title company after they have searched the public records for your property. It commits to insuring the title — but only if certain conditions are satisfied and only subject to specific exceptions the title company has already identified.

It is not the policy itself. The actual title insurance policy is issued at closing or shortly after. Think of the commitment as the title company's draft terms: here is what we found, here is what we will and will not cover, and here is what still needs to be resolved before we issue the policy.

In Texas, there are two types of title insurance relevant to a standard residential purchase. An Owner's Policy protects you, the buyer, against covered title defects. A Lender's Policy protects the mortgage lender if one is involved. When you finance a purchase, both policies are typically issued simultaneously. The lender will almost always require their policy as a condition of the loan. The Owner's Policy is optional under Texas law — but declining it is rarely advisable.

Title insurance in Texas is regulated by the Texas Department of Insurance, which sets the premium rates. Unlike many other states, rates are not negotiated — they are based on the coverage amount and set by TDI. What varies is the quality of service, the thoroughness of the title search, and how efficiently the company handles requirements at closing.

What Title Insurance Does and Does Not Cover

Title insurance is backward-looking protection. It covers title defects that existed before the policy date — things that happened in the property's history that could later threaten your ownership.

Covered risks typically include prior liens that were not properly released, fraud or forgery in a prior deed, missing heirs who later make a claim, clerical errors in public records, and problems with prior conveyances that were not properly executed. These are real risks. Chains of title in Texas can stretch back more than a century, and problems buried deep in the records occasionally surface years after a purchase.

What title insurance does not cover is equally important to understand. It does not protect you against issues that arise after the policy date — a lien you create by not paying a contractor, for example. It generally does not cover survey matters unless a survey endorsement is specifically added to the policy. And it does not cover items that are expressly listed as exceptions in Schedule B of the commitment. Those exceptions are the heart of what you need to read carefully.

Schedule A: The Basic Facts

Schedule A is the administrative foundation of the commitment. It states the effective date of the title search, the proposed policy amounts for the Owner's and Lender's policies, the type of estate being conveyed (almost always fee simple in a standard residential sale), the legal description of the property, and the names of the proposed insured parties — you and your lender.

Schedule A is where you verify that the property being described matches what you are buying. Confirm the legal description against your purchase contract and the survey, if you have one. Errors in legal descriptions are rare but worth catching early. This schedule is mostly administrative — significant problems rarely originate here.

Schedule B: The Exceptions (Read These Carefully)

Schedule B is where your attention belongs. This schedule lists items that the title policy will expressly not cover. These are not necessarily problems with the property — but they are conditions of your coverage, and you need to understand each one before closing.

Note: Schedule B exceptions should be reviewed before your option period ends, not the day before closing. If you are still within the option period and receive a title commitment with items you do not understand, that is the time to ask questions — and, if needed, the time to walk away with your option fee as your only cost.

Common Schedule B items include utility and drainage easements, deed restrictions and restrictive covenants, HOA declarations and recorded amendments, mineral rights reservations, and various other recorded instruments affecting the property. The presence of these items does not mean the property is unsellable or that something has gone wrong. It means the title company has identified recorded instruments that affect the property and will not insure against claims arising from those instruments.

An exception exists because the title company found something in the public record. Your job as a buyer is to understand what that thing is, what it means for this specific property, and whether it affects your intended use.

Schedule C: The Requirements

Schedule C is the commitment's to-do list. It lists conditions that must be satisfied before the title company will issue the actual policy at closing.

Common Schedule C requirements include confirmation that the seller's existing mortgage is paid off and released, satisfaction of any outstanding liens against the property (contractor liens, judgment liens, tax liens), payment of delinquent property taxes or HOA assessments, and execution of specific affidavits the title company needs from the seller, buyer, or both.

Review Schedule C alongside your real estate agent. Most items here are routine and resolved through the normal closing process — the seller's lender is paid from proceeds, taxes are prorated and cleared. But occasionally Schedule C will surface something unexpected: an old lien that the seller did not disclose, a tax delinquency, a judgment that needs to be addressed. Finding these items in Schedule C before closing, rather than at the closing table, gives everyone time to resolve them properly.

Common Schedule B Items Explained

Understanding what each type of exception actually means helps you evaluate whether it matters for your purchase.

Easements are rights granted to a utility company, municipality, neighbor, or other party to use a portion of your property for a specific purpose. Utility easements — for electric lines, water mains, gas pipelines, or telecommunications infrastructure — are nearly universal in DFW residential properties. They typically run along property lines and do not affect daily use of the home. Access easements for a neighbor's benefit are less common and warrant more attention. If an easement covers a significant portion of the usable yard or conflicts with planned improvements, that is worth discussing with the title company and potentially an attorney.

Utility rights are closely related to easements and represent the recorded rights of power, water, gas, and telecom providers to maintain infrastructure crossing the property. These are standard and expected in virtually every residential transaction.

Deed restrictions are recorded limitations on how the property can be used. In older DFW subdivisions, deed restrictions may limit fence height, prohibit certain outbuildings, restrict commercial use, or regulate parking. In newer communities, they are typically part of the HOA's governing documents. Deed restrictions run with the land — a violation is the owner's problem regardless of when the restriction was first recorded. If you plan to use the property in a non-standard way (short-term rental, home-based business, ADU addition), review any deed restrictions carefully before closing.

HOA declarations are the recorded CC&Rs, bylaws, and amendments that govern the subdivision. The title commitment will list them as exceptions. The actual content is typically found in the HOA resale certificate and governing documents, which you should review separately. Title insurance will not cover a claim arising from an HOA covenant you violated.

Mineral reservations reflect the fact that Texas law allows the surface estate and the mineral estate to be owned separately. Prior owners may have severed and retained mineral rights before selling the surface. For most urban and suburban DFW buyers purchasing a home in an established neighborhood, a mineral rights reservation is largely informational — there is no active drilling, and surface use is not meaningfully affected. In rural or semi-rural transactions, or where oil and gas activity is more proximate, this exception warrants closer review.

Liens identified during the title search may appear in either Schedule B or Schedule C depending on their nature. A lien that must be paid off before closing appears as a requirement in Schedule C. A lien that the title company is not committing to resolve may appear in Schedule B. If you see any lien in Schedule B, ask directly why it is there and what the title company's position is on that item.

Note: If any Schedule B exception is unclear, ask the title company to explain it in plain language specific to this property. A good title officer will walk you through each item. You are not required to accept unexplained exceptions on the assumption that they are routine.

Why a Title Commitment Is Not a Clean Bill of Health

One of the most persistent misconceptions among first-time Texas buyers is that receiving a title commitment means the title has been cleared. It has not. The commitment tells you what the title company found in the public records and what they are willing and unwilling to cover.

A long Schedule B is not automatically a problem — most DFW properties will have multiple easements, deed restrictions, and HOA documents listed, and that is completely normal. But a Schedule B you have not read is a set of limitations on your coverage that you do not understand. The time to understand them is before you close, not after a dispute arises.

Similarly, a short Schedule C does not mean closing will be seamless. Requirements still need to be satisfied on time. Delays in lien releases, unexpected payoff issues, or missing affidavits can push a closing date. Staying in communication with your agent and the title company through the final weeks before closing helps surface these issues before they become emergencies.

When to Consult a Real Estate Attorney

Texas does not require buyers to have an attorney at closing. Many buyers close without one. But certain situations call for legal review of the title commitment before you proceed.

Consider retaining a real estate attorney when the commitment discloses an unusual easement — particularly a blanket easement, a pipeline easement, or an access easement for a neighboring property. If mineral rights seem materially relevant to your intended use of the property, an attorney can help you evaluate the implications. If deed restrictions may conflict with how you plan to use the property, you want an attorney's opinion before closing, not after. And if Schedule C contains items that are unusual, unresolved, or difficult to interpret, an attorney can advise on whether they can realistically be satisfied before closing.

Note: The option period — typically 7 to 10 days in a standard Texas residential contract — is the right window to review the title commitment with an attorney if needed. During the option period, you can terminate the contract for any reason and receive your option fee as your only cost. After the option period ends, your earnest money is at risk if you back out for a non-contractual reason.

12 Questions to Ask Before Closing

Bring these questions to your title officer or real estate attorney when reviewing the commitment:

  • What does each Schedule B exception mean for this specific property?
  • Does any exception affect my intended use of the property?
  • Can survey coverage be added to the Owner's Policy, and what does it cost?
  • What exactly must happen to satisfy each Schedule C requirement, and who is responsible for it?
  • Are there any pending assessments, judgments, or special district obligations affecting the property?
  • Is there any active litigation affecting this property or the seller's title?
  • What is the exact legal description and does it match the survey I received?
  • Are there any recorded violations of the deed restrictions that the seller is aware of?
  • Is the seller's mortgage confirmed to be paid off at closing, and has a payoff been requested?
  • Are there any delinquent HOA dues that will need to be resolved before or at closing?
  • What is the effective date of the commitment and when does it expire?
  • Who should I contact if I have questions about a specific exception between now and closing?

You are entitled to clear answers to every one of these questions. If you do not understand an answer, ask again.

Frequently Asked Questions

Who typically pays for title insurance in Texas?

In Texas, it is customary — though not legally required — for the seller to pay for the Owner's Policy and for the buyer to pay for the Lender's Policy if they are financing the purchase. This is a negotiable term in the purchase contract. In a buyer's market, sellers may offer to pay both policies as an incentive. In a competitive market, buyers sometimes agree to cover both. Your purchase contract should specify who is responsible for each policy.

Can the title company revise the commitment after it is issued?

Yes. The title company can issue updated or amended commitments if new information is discovered during the search or if circumstances change. If a lien is discovered after the initial commitment is issued, it may be added to Schedule C as a requirement. If the effective date needs to be extended, the commitment is updated. Always review any updated commitment carefully — changes from the prior version are what matter most.

Is a title policy the same as homeowner's insurance?

No. These are entirely separate products covering entirely different risks. Homeowner's insurance covers physical damage to the structure and personal property from events like fire, storms, and theft. Title insurance covers legal defects in ownership — prior liens, fraud, missing heirs, recording errors — that existed before you purchased the property. Both are typically required by a mortgage lender, but they serve different purposes and are issued by different companies.

What happens if a title defect is discovered after closing?

If a covered title defect surfaces after closing — for example, a prior lien that was not properly released or a forged deed in the chain of title — you file a claim with your title insurance company. The title insurer will defend your ownership in court and, if necessary, compensate you up to the policy amount. This is exactly what the Owner's Policy is designed for. The claims process can be complex; having documentation of your purchase and the policy itself is important for any future claim.

Does a title commitment guarantee that title is clear?

No. A title commitment is not a guarantee of clear title. It is a conditional commitment to issue a policy, subject to the exceptions in Schedule B and the requirements in Schedule C. The exceptions represent known items that will not be covered. The requirements represent conditions that must be met. Even after the policy is issued, it covers only the risks listed as insured — not those listed as exceptions. Clear title is the goal of the process, but the commitment itself is not that declaration.

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