Understanding Title Protection in Texas Real Estate Buying a home or commercial property in Texas is an exciting milestone—but before you sign the closing documents, it’s essential to make sure the property’s title is clean and protected. At Aaron C. Lee Law Firm, we guide buyers, sellers, and investors through every stage of their real estate transaction, ensuring there are no hidden surprises after closing. One of the most common questions we hear is: What does title insurance actually cover? Below, we’ll explain what title insurance is, why it matters, and what you should know before you close on your next property in Collin County or anywhere across North Texas. What Is Title Insurance? Title insurance is a one-time policy that protects property owners and lenders against losses from defects in a property’s title. In plain terms, it’s designed to ensure that the person selling you the property truly owns it—and that there are no legal claims, liens, or ownership disputes that could threaten your rights later. In Texas, title insurance is regulated by the Texas Department of Insurance (TDI) , which means premiums are consistent statewide. You’ll typically see two policies at closing: Owner’s Policy – Protects the buyer’s ownership interest in the property. Lender’s Policy – Protects the mortgage lender’s interest until the loan is paid off. Why Title Insurance Matters Real estate ownership in Texas carries with it a long paper trail. Every time a property changes hands, new deeds, liens, and releases are recorded. A simple filing mistake, unpaid contractor bill, or forgotten heir from decades ago can create serious complications for new owners. Without title insurance, you could face: Expensive legal fees to defend your ownership rights. Unexpected claims from prior owners, contractors, or taxing authorities. Delays or even cancellation of future sales or refinances. Title insurance ensures that if a covered issue arises, your policy pays for the legal defense and—if needed—reimburses you for your loss. It’s one of the few times in real estate where a single payment provides long-term protection. How the Title Process Works Before you close, a title company conducts a comprehensive title search to verify ownership history and identify potential problems. Here’s how that process typically unfolds in Texas: Title Search – The title company examines county records for liens, judgments, easements, and prior transfers. Title Commitment – A preliminary report showing any issues that must be resolved before closing. Curative Work – The attorney or title team clears defects (e.g., obtaining releases or correcting deed errors). Issuing the Policy – Once the property is confirmed clear, title insurance is issued at closing, and you receive your final policy after recording. At Aaron C. Lee Law Firm, we coordinate this process through our trusted partner, Alamo Title , providing clients a seamless experience from contract to closing. What Title Insurance Covers While each policy is specific to the property, most title insurance in Texas covers: Errors in recorded deeds or documents Undisclosed heirs or ownership disputes Forged or fraudulent signatures Improperly recorded releases or liens Unpaid taxes or special assessments Mistakes in the public record If any of these issues come to light after your purchase, your title insurance will typically cover the legal defense costs or financial loss up to the policy amount. What Title Insurance Does Not Cover It’s just as important to understand what isn’t covered. Title insurance doesn’t protect against issues that arise after the date of purchase or matters you were already aware of. Typical exclusions include: Boundary disputes or survey errors not shown in records Zoning violations or land-use issues Environmental or structural problems Easements or restrictions you accepted during the purchase Liens or claims that appear after closing An attorney’s review before closing ensures you know exactly what’s on your title commitment and helps identify any potential risks your policy might not cover. Common Title Issues in Texas Even with careful recordkeeping, Texas properties often come with unique title challenges. Common examples include: Unreleased Deeds of Trust: A prior loan was paid but never properly released. Mechanic’s Liens: A contractor or subcontractor wasn’t paid and filed a lien. Probate-Related Claims: A previous owner died without a will, leaving uncertain heirs. Boundary or Easement Conflicts: Recorded easements can affect property use or access. Errors in Legal Descriptions: A minor typo can impact property boundaries or ownership records. Our firm frequently identifies and resolves these problems before closing to ensure you receive clear title. Challenges Clients Often Face Many buyers assume the title company handles everything, but title companies cannot provide legal advice. Without attorney involvement, clients might sign documents they don’t fully understand or overlook exceptions in the title commitment that affect ownership rights. Common issues include: Misunderstanding what “Schedule B” exceptions mean in a title commitment. Failing to notice easements or HOA restrictions that limit property use. Not addressing minor defects that can become major problems when selling later. With legal guidance, these issues can be spotted and solved early—often saving time, money, and stress. How Aaron C. Lee Law Firm Can Help Our firm works directly with Alamo Title and other trusted local partners to streamline the closing process. We review title commitments, resolve curative issues, and explain every step in clear, plain language. Whether you’re purchasing your first home, refinancing, or closing on a commercial property, our team provides the oversight that keeps your transaction on track and your ownership secure. Having an attorney involved also means your interests—not just the transaction—are protected. Ready to Close with Confidence? Protect Your Investment from Day One Title insurance is more than a formality—it’s peace of mind. If you’re buying or selling property in Allen, Plano, McKinney, Frisco, or anywhere in Collin County , Aaron C. Lee Law Firm can help you navigate the title process with clarity and confidence. Contact our office today to discuss your upcoming closing or request a title review. We’re here to make sure your property truly—and legally—belongs to you.
Planning Ahead for the Property You’ve Worked Hard to Build Real estate is often one of the largest and most meaningful investments people make. Whether you own a family home in Allen, a rental property in McKinney, or commercial land in Plano, you want to know your property will be handled properly in the future. At Aaron C. Lee Law Firm, we help clients protect their real estate investments through sound legal planning—including establishing living trusts that keep assets secure, avoid probate delays, and ensure a smooth transfer to loved ones. What Is a Living Trust? A living trust (also called a revocable trust) is a legal document that allows you to place your assets—including real estate—into a trust during your lifetime. You remain in control as the trustee, managing and using the property as you normally would. When you pass away, your successor trustee distributes the property to your chosen beneficiaries without having to go through probate court. In simple terms, a living trust is like a container that holds your assets while you’re alive and passes them directly to your heirs when you’re gone—saving time, expense, and stress. Why a Living Trust Matters for Real Estate Owners For Texas homeowners and investors, there are several reasons why a living trust can make a real difference: Avoiding Probate: Real estate held in a trust bypasses the court process, allowing a faster and more private transfer of ownership. Maintaining Control: You decide how, when, and to whom your property passes. Protecting Family Privacy: Unlike probate, which becomes public record, a trust keeps your estate details confidential. Simplifying Multi-Property Ownership: If you own property in multiple states, a trust can eliminate the need for separate probate proceedings in each location. Preparing for Incapacity: If you become unable to manage your affairs, your successor trustee can step in to manage your real estate smoothly. Without a trust, your loved ones may face months—or even years—of delay as the court oversees the transfer of your property. How to Use a Living Trust to Protect Your Real Estate Creating a living trust for real estate is a detailed process, but it’s straightforward with legal guidance. Here’s how it typically works in Texas: Create the Trust Document Your attorney drafts a customized revocable trust agreement outlining your wishes, who will manage the property, and how it will be distributed. Transfer the Property Title into the Trust You’ll sign a deed transferring ownership of your home or investment property into the trust’s name. This is called “funding the trust.” Name a Successor Trustee Choose someone you trust—such as a family member, friend, or professional fiduciary—to manage or distribute the assets after your passing. Keep It Current As you buy or sell property, your attorney can update your trust to reflect new assets or beneficiaries. Enjoy Flexibility Because a living trust is revocable, you can modify or dissolve it at any time while you’re alive. At Aaron C. Lee Law Firm, we handle the legal drafting, deed preparation, and recording process, ensuring your trust is properly executed and enforceable under Texas law. Common Examples of When a Living Trust Helps Living trusts can benefit a wide range of people—not just the wealthy. Here are a few examples: Married Homeowners who want to make sure their spouse automatically inherits the home without probate. Real Estate Investors with multiple rental properties who want to consolidate ownership and simplify management. Blended Families looking to ensure children from prior relationships receive specific property interests. Retirees aiming to make things easier for their adult children when the time comes to transfer ownership. For instance, a couple who owns rental property in Allen and a vacation home in Oklahoma could avoid two separate probate proceedings by placing both properties into one Texas living trust. Issues That Can Arise Without a Trust Failing to plan with a living trust can lead to costly and stressful problems for your heirs, such as: Probate Delays: Probate in Texas can take six months to a year or more, even for uncontested estates. Public Records Exposure: Probate filings are public, meaning anyone can view details about your property and beneficiaries. Unexpected Expenses: Court fees, appraisals, and attorney costs can eat into your estate’s value. Family Disputes: Without clear instructions, disagreements among heirs can quickly turn emotional or litigious. A well-drafted living trust prevents these scenarios by creating a clear, private, and legally binding plan. How Aaron C. Lee Law Firm Can Help Our firm provides personalized estate planning for clients throughout Allen, Plano, McKinney, Frisco, and Collin County. We integrate our real estate law experience with trust planning to make sure property transfers are done correctly. From drafting the trust agreement to preparing and recording new deeds, we handle every step so you can move forward with peace of mind. Whether you’re a homeowner, investor, or business owner with property interests, we’ll tailor a trust that fits your goals—and keeps your assets secure for future generations. Ready to Protect What You’ve Built? Plan Today, Preserve Tomorrow Your real estate investments represent years of effort and dedication. Don’t leave their future to chance or the probate courts. A living trust offers clarity, privacy, and control—benefits that make a lasting difference for your family. Contact Aaron C. Lee Law Firm today to schedule a consultation and learn how a living trust can help you protect your property, simplify your estate, and create a plan that reflects your values. Serving clients in Allen, Plano, McKinney, Frisco, and the greater Collin County area, we make planning for the future simple, clear, and personal.