Who Pays for Title Insurance in Texas?

The short version

• In most of Texas, including Houston, the seller customarily pays for the owner's title policy and the buyer pays for the lender's policy
• It's negotiable—the standard TREC resale contract has a line for who pays the owner's premium
• Texas premiums are set by the state (TDI), so they're identical at every title company
• The owner's premium is based on the sales price; the lender's policy is discounted when issued at the same closing
• Other closing charges (escrow fee, endorsements, recording) are separate from the premium

Who customarily pays in Houston

Texas real estate has long-standing local customs, and in the Houston area the seller usually pays for the owner's title policy while the buyer usually pays for the lender's policy tied to their loan. But "customary" is not the same as "required." Everything is negotiable, and the standard TREC resale contract includes a checkbox for whether the buyer or seller pays the owner's premium. In a competitive market a buyer may offer to cover it; in a slower market a seller may agree to more.

Why the premium is the same everywhere

This surprises a lot of buyers: in Texas you cannot shop around for a cheaper title-insurance premium. Rates are promulgated (set) by the Texas Department of Insurance, so the basic owner's premium for a given sales price is the same at every licensed title company in the state. What does differ is service—turnaround time, accuracy of the commitment, communication, and how smoothly your closing runs. Choose your title partner on that, not on a price that can't legally change.

Costs, discounts, and timing

The owner's premium scales with the sales price of the home. When the owner's and lender's policies are issued at the same closing, the lender's policy is issued at a steeply reduced simultaneous-issue rate, which keeps your total title cost lower than buying them separately.

Keep in mind the premium is only one line on your settlement statement. You'll also see items like the escrow/closing fee, any endorsements, tax certificates, and county recording fees—these can vary by company and by transaction, so ask for an estimate up front.

On timing, the policy is paid once at closing, and owner's coverage lasts as long as you own the home—there's no monthly bill. Sorting out who pays early, in the contract, prevents last-minute surprises on your Closing Disclosure. If you're not sure who's covering what in your deal, ask your agent or title officer to walk you through the contract before you sign.