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.
Start Smart with Legal Guidance That Protects Your Investment Buying a home or investment property in North Texas can be one of the most exciting—and financially significant—decisions you’ll make. But between contracts, title commitments, and closing costs, the process can also be complex. At Aaron C. Lee Law Firm , we help buyers throughout Allen, Plano, McKinney, and Frisco navigate the legal side of real estate transactions with confidence, clarity, and local insight. In this post, we’ll cover key legal tips every buyer should know before signing a contract or heading to closing day. Understanding the Legal Side of Property Purchases When you buy real estate in Texas, you’re not just purchasing a physical structure—you’re buying the legal right to the property and everything that comes with it. A Texas real estate purchase involves several layers of documentation, from the purchase agreement and title insurance to HOA restrictions and financing terms . While real estate agents handle negotiation and marketing, only an attorney can explain the legal meaning of the documents you sign or help correct title and contract issues before they become major problems. That’s why having legal counsel early in the process is key. Why Legal Guidance Matters in Texas Real Estate Texas is not an attorney-closing state , which means title companies typically manage the closing process. However, title companies cannot provide legal advice. Without attorney involvement, many buyers sign documents they don’t fully understand—or worse, overlook potential issues in the title or contract that can cost them thousands later. Having a lawyer review your purchase can: Prevent hidden title defects from derailing your closing Ensure contract terms protect your interests, not just the seller’s Clarify HOA covenants and deed restrictions before you commit Identify zoning or easement issues that affect property use Save you time and stress if something goes wrong before closing In short, an experienced real estate attorney ensures your investment is legally sound from day one. Step-by-Step Legal Tips for Texas Homebuyers Here’s what to look out for when buying property in Allen, Plano, McKinney, or Frisco : 1. Review the Purchase Contract Carefully The Texas Real Estate Commission (TREC) provides standard forms, but they may not fit every situation. An attorney can customize addenda or clarify unclear terms, like repair obligations, option periods, or termination rights. 2. Understand the Title Commitment Before closing, the title company issues a title commitment , showing who currently owns the property and any liens or restrictions. Have an attorney review it to identify potential red flags—such as unpaid taxes, unreleased deeds of trust, or HOA liens. 3. Check Deed Restrictions and HOA Rules Collin County is known for neighborhoods with detailed HOA covenants. Some regulate paint colors, landscaping, or short-term rentals. Knowing these restrictions early prevents costly surprises or violations later. 4. Order a Property Survey A survey confirms the property’s boundaries and reveals potential encroachments (like a neighbor’s fence crossing onto your land). Your attorney can ensure the survey exception in your title policy is removed or minimized. 5. Verify Zoning and Land Use If you plan to remodel, add a pool, or convert property use (for example, from residential to rental), confirm zoning and permit rules with the city. In growing areas like Frisco and McKinney , zoning can change quickly as new developments emerge. 6. Plan for Title Insurance Texas regulates title insurance costs statewide, so rates are the same across title companies. Still, it’s essential to know what your owner’s title policy covers—and what it doesn’t. Title insurance protects against past ownership or lien issues but not future disputes or survey errors. 7. Close with Confidence At closing, you’ll sign the deed, settlement statement, and loan documents. Having a lawyer review them ensures the terms match what you agreed to, and that your property transfers cleanly into your name. Common Issues Buyers Face Even straightforward transactions can come with surprises. We frequently see challenges such as: Incorrect legal descriptions in deeds or contracts Unreleased liens from prior owners that delay closing Disputes over earnest money when contracts fall through Title exceptions that limit how you can use your land Missing signatures or filing errors that cloud ownership Addressing these problems before you sign helps prevent months of delay—or worse, a deal that falls apart entirely. Real-World Examples The Unpaid Contractor: A buyer in Allen purchased a newly renovated home, only to find a mechanic’s lien filed by an unpaid contractor. Because the lien wasn’t cleared before closing, the buyer had to pay thousands out of pocket. A title review could have flagged the issue. The Hidden Easement: In McKinney, a homeowner discovered an underground utility easement running through the backyard, blocking plans for a pool. A review of the survey and title commitment would have revealed it early. The HOA Oversight: A family in Plano bought a home intending to rent it out short-term, only to learn their HOA prohibited rentals under six months. A contract addendum or pre-purchase legal review could have prevented the conflict. How Aaron C. Lee Law Firm Helps North Texas Buyers At Aaron C. Lee Law Firm , we combine legal precision with local insight. We routinely assist buyers in Allen, Plano, McKinney, and Frisco with: Contract review and negotiation Title commitment and survey analysis Deed preparation and title curative work Collaboration with Alamo Title for seamless closings Guidance on zoning, HOA, and deed restrictions Our goal is to make sure your closing goes smoothly and your ownership is legally protected from day one. We translate complex legal terms into plain language and provide peace of mind throughout the transaction. Avoiding the “Too Late” Mistake Many buyers wait until closing day—or after—to involve an attorney. By then, problems can be harder and more expensive to fix. Engaging a lawyer before signing a contract or title commitment gives you leverage, clarity, and confidence. If you’re considering a property purchase, even a short legal review could save you time, money, and stress down the road. Ready to Buy with Confidence? Start Your Closing the Right Way Whether you’re purchasing your first home in Allen, upgrading in Plano, or investing in McKinney or Frisco, our team can help you make informed decisions every step of the way. Contact Aaron C. Lee Law Firm today to schedule a consultation or title review. We’re proud to serve clients across Collin County and the surrounding North Texas communities—helping buyers close on properties they can truly call their own.