Texas Title Insurance in 2026: What Dallas Buyers and Sellers Actually Pay

What Is Texas Title Insurance and Who Pays for It?

Texas title insurance comes in two forms: an owner's policy that protects the buyer, and a lender's policy that protects the mortgage company. In a standard Dallas-area transaction, the seller pays the owner's policy premium and the buyer pays the lender's policy premium. Texas is one of only two states where the government sets a single promulgated rate that every title company must charge, so you cannot shop for a lower price on the base premium. As of March 1, 2026, those rates dropped by 6.2% under Commissioner Order No. 2025-9697.

By Paul Blair | October 8, 2026

If you're buying or selling a home in the Dallas area, title insurance will show up as a line item on your closing disclosure, and it'll probably be the one you didn't expect.

In most states, the buyer pays for their own title protection. In Texas, the seller does. That's just the start of what makes Texas title insurance different from everywhere else.

Here's the full picture for 2026, including what changed in March.

Two Policies, One Closing

Every financed purchase in Texas closes with two title insurance policies issued simultaneously by the same title company.

The owner's policy protects you as the buyer. It covers the full purchase price of your home for as long as you or your heirs own the property. If someone comes forward after closing with a claim against the title (a lien that wasn't caught, a forged deed in the chain of title, an undisclosed heir), the owner's policy defends your ownership and covers your loss up to the policy amount.

The lender's policy protects your mortgage company. It's required by virtually every lender as a condition of financing, and it covers the outstanding loan balance, declining as you pay down the principal and expiring when the loan is paid off.

Both policies are issued at the same closing table, which matters a lot for what you'll actually pay.

What You'll Pay at a Dallas Closing in 2026

Texas is one of only two states where the Department of Insurance sets a single promulgated rate schedule for title insurance. Every title company in the state must charge the same base premium. There is no shopping for a lower price.

On March 1, 2026, Texas Commissioner Order No. 2025-9697 took effect, reducing basic title insurance premiums by 6.2%. Here's what the owner's policy costs at different price points under the new schedule:

• $200,000 home: approximately $1,274 owner's policy premium
• $300,000 home: approximately $1,852
• $400,000 home: approximately $2,264
• $500,000 home: approximately $2,847
• $600,000 home: approximately $3,293

For a $700,000 home in Plano or Frisco, you're looking at roughly $3,700 to $3,800.

These figures are the owner's policy only. Now here's the part that surprises most buyers.

The $100 Lender's Policy

When both policies are purchased simultaneously from the same title company, Texas Rate Rule R-5 kicks in. The lender's policy drops to a flat $100, regardless of loan size.

Without simultaneous issue, the standalone lender's policy would run approximately 40% of the owner's policy rate. On a $400,000 purchase, that's around $900 for the lender's policy alone. With simultaneous issue: $100. That's $800 in savings that flows automatically when both policies come from the same company at the same closing.

This is why it almost never makes sense to try to skip the owner's policy to save money. If you go without the owner's policy and only get the lender's policy, you're paying the full standalone rate and you have no protection for yourself.

Who Pays What in Dallas (Custom vs. Law)

In a standard Dallas or Collin County transaction, here's the customary split:

The seller pays the owner's policy premium. The reasoning behind this goes back to the seller's obligation to deliver clear, marketable title. The seller is essentially saying: I'm so confident this title is clean that I'll insure it for you.

The buyer pays the lender's policy premium, which is usually just that $100 simultaneous issue rate.

It's worth saying clearly: this is local custom, not state law. Either side can negotiate. In competitive markets, buyers sometimes absorb the owner's policy premium to make their offer more attractive. At new construction developments, builders routinely require buyers to pay for both policies. If you're buying a new build in Prosper, Celina, or Anna, budget for both.

Whatever the contract says governs. The customary split is just the starting point.

What Title Insurance Protects You From

Title insurance covers problems that existed before you bought the home, not things that happen after.

That's what makes it different from home insurance. Home insurance covers future events (fire, flood, storm damage). Title insurance covers past events that could surface and threaten your ownership.

Common claims include:

• Unpaid property taxes from a previous owner
• Contractor liens from work done before your purchase
• Forgery in the chain of title (a fraudulent deed transfer several owners back)
• An undisclosed heir or ex-spouse with a claim on the property
• Boundary disputes revealed by a new survey
• Errors in public records

You pay a one-time premium at closing. That's it. The coverage lasts for as long as you own the home. Given that the coverage is permanent and the Texas Department of Insurance just cut the rates, it's genuinely good value compared to what you're protecting.

A Note on Endorsements

The base owner's policy covers the standard set of title defects, but you can purchase endorsements to expand coverage. The most common for Texas buyers is the T-19.1 endorsement, which adds protection for mineral interests, encroachments, and deed restriction violations.

If you're buying in a neighborhood where mineral rights have been severed from surface rights (common in parts of North Texas), or if you want extra protection around survey issues, ask your title company about the T-19.1 at closing. It typically runs 5% to 10% of the owner's policy premium, added to your closing costs. For context, on a $400,000 purchase that's an additional $113 to $226 for coverage that could be worth far more if a mineral rights dispute ever surfaces.

What You Can (and Can't) Shop on Price

Since the base premium is state-regulated, all title companies charge the same for the policy itself. What you can compare is service quality, turnaround time, how organized the preliminary title commitment is, and how experienced the closer is.

In a competitive market where timelines are tight, the speed and reliability of your title company matters more than any price difference. Your agent will usually have a recommendation, but you're free to choose your own. Just confirm they're active in your specific county and familiar with the local records system.

For Collin County transactions, the county's deed history can be more complex in fast-growth areas like McKinney, Frisco, and Prosper, where subdivision plats and recorded easements are relatively recent. Working with a title company that knows those records makes a real difference when your closing deadline is approaching.

Frequently Asked Questions

Is title insurance required in Texas?

The owner's policy is not required by Texas law, but your lender will require the lender's policy as a condition of financing. While the owner's policy is technically optional, skipping it exposes you to uncovered title claims and also costs you the simultaneous issue discount, making the standalone lender's policy significantly more expensive.

Why does the seller pay for title insurance in Texas?

It's a long-standing custom rooted in the seller's obligation to deliver marketable title. By paying the owner's policy premium, the seller is certifying that the title is clean enough to insure. This custom is not required by state law and can be negotiated in any transaction.

What changed about Texas title insurance rates in 2026?

Effective March 1, 2026, Commissioner Order No. 2025-9697 reduced basic title insurance premiums in Texas by 6.2%. On a $500,000 home, the owner's policy now costs approximately $2,847 under the new TDI rate schedule. All title companies must use the new promulgated rates for policies issued on or after that date.

Can I shop around for a lower title insurance price in Texas?

No, not on the base premium. The Texas Department of Insurance sets a single rate schedule that every title company must follow. You can compare title companies on service quality, turnaround time, and endorsement expertise, but the base policy premium is identical at every company in the state.

Does title insurance cover problems found on a survey?

The standard owner's policy does not automatically cover survey-related issues like encroachments or boundary disputes. You can add the T-19.1 endorsement for additional protection, which covers mineral interests, deed restriction violations, and certain encroachment and boundary issues. Ask your title company or agent about this option if survey issues are a concern.

Title insurance doesn't make headlines the way mortgage rates or list prices do, but it's one of the most consequential line items at your closing table. In Dallas and across the DFW area, understanding who pays what, and why, gives you a cleaner picture of your real costs before you get to the table.

If you're working through what your closing costs will look like, I'm happy to pull the numbers together for your specific situation. Sellers: get your home's current market value here. Buyers and sellers both: reach out directly at greysq.com/contact.

About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.