What Title Insurance Covers In Texas

Buying or selling in Dominion comes with a lot of paperwork, and title insurance is one item that can feel confusing. You want to protect your investment, avoid surprises after closing, and know exactly what you are paying for. This guide breaks down what title insurance covers in Texas, what it does not, and how to navigate common issues in San Antonio’s Dominion community. You will also get a clear checklist and the key questions to ask before you close. Let’s dive in.

Title insurance basics in Texas

Title insurance protects you from certain losses tied to defects in a property’s ownership history that existed on or before your closing date. It is different from homeowner’s insurance, which covers future events like fire or theft. Title insurance is a one-time premium that provides defense and indemnity for covered title issues while you own the home.

In Texas, the industry is regulated by the Texas Department of Insurance. Consumer guides from the Texas Land Title Association and the American Land Title Association can help you understand policy terms, endorsements, and standard practices.

Owner’s vs. lender’s policies

• Owner’s policy: Protects you, the homeowner, up to the purchase price. Coverage typically lasts as long as you own the property, and it can extend to your heirs.
• Lender’s policy: Protects the lender’s interest up to the loan amount. It does not protect your equity and usually decreases as the loan is paid down.

Why it matters in Dominion

Dominion is a gated, master-planned community with recorded covenants, an active HOA, and detailed property improvements. In areas like this, title reviews often surface HOA-related items, easements, and survey matters. A clear understanding of what is covered and how endorsements work helps you avoid post-closing headaches.

What a standard owner’s policy covers

A standard Texas owner’s policy typically protects you from losses related to title problems that existed before you took ownership, including:

• Defects in recorded documents such as forged signatures or improper notarizations.
• Unknown heirs or heirs of prior owners who later claim an interest.
• Certain liens missed in the title search, like unpaid contractor or some judgment liens.
• Problems from incorrect vesting, defective deeds, or fraudulent conveyances.
• Encumbrances of record not disclosed during the title search, subject to policy exceptions.

If a covered claim arises, the insurer will defend your title and pay covered losses up to the policy amount, subject to the policy’s terms and exceptions.

What title insurance usually does not cover

Standard policies include exclusions. You should know these so you can plan or add endorsements if available:

• Zoning or land-use violations and set-back issues unless you buy a specific endorsement.
• Issues created after the policy date, including new liens or acts by the owner.
• Rights of parties in possession that are not recorded, such as unrecorded leases.
• Survey-related problems like boundary disputes or encroachments unless you have a survey endorsement or a current acceptable survey.
• Environmental conditions or contamination.
• Government takings or eminent domain, unless an endorsement extends coverage.
• Easements, restrictions, or covenants that are listed as exceptions in the policy’s Schedule B.

Endorsements that fill important gaps

Endorsements are add-ons that expand coverage for specific risks. In Texas, common endorsements for Dominion buyers include:

• Survey coverage: Helps protect against boundary issues or minor encroachments when supported by an acceptable survey.
• Access endorsement: Confirms legal access to a public road.
• HOA or assessment endorsements: Important in HOA communities to address certain assessment-related risks.
• Gap, vesting, or mechanics’ lien endorsements: Used based on how the deal is structured.

Endorsements require underwriting review and typically cost an additional one-time premium.

The title commitment and why Schedule B matters

Before closing, the title company will provide a Title Commitment. Think of it as a preview of your policy, not the policy itself. It outlines what will be covered and what needs to be cleared before the policy can be issued.

• Schedule A lists who and what is being insured and for how much.
• Schedule B shows requirements and exceptions. Requirements are items that must be satisfied before closing, like paying off a lien. Exceptions are items that will not be covered by your policy unless removed or insured over.

Example: Your Schedule B might list a recorded utility easement along your side yard. That easement will remain an exception to coverage. If your survey shows a fence encroachment into a setback, you would typically need a survey endorsement or corrective action. Always ask your title company which exceptions are standard and which can be removed or insured over.

Curative work, closing, and final policy

If the title commitment shows clouds on title, the title company will work on “curative” items, such as obtaining lien releases, corrective deeds, or affidavits. After you close and the deed is recorded, the company issues your final policy along with any approved endorsements. If a covered defect surfaces later, contact the insurer quickly. Policies require timely notice and cooperation for claims handling.

Dominion and Bexar County issues to watch

Dominion is known for strict HOA standards, high-quality improvements, and private amenities. That makes a careful title review especially important.

• Mineral rights and severed estates: Texas allows mineral rights to be separated from surface rights. The deed history may show mineral reservations or royalty interests in prior transfers. Ask the title company to explain any mineral exceptions and whether endorsements or curative steps are possible.
• HOA covenants and assessments: Review recorded CC&Rs, bylaws, and the HOA resale certificate. In Texas, some HOA liens and assessment issues require special attention. HOA-related endorsements can help address certain risks.
• Surveys and boundaries: Many disputes in suburban neighborhoods arise from fences, driveways, or landscaping near lot lines. A current survey or survey endorsement is often worth the cost.
• Easements and municipal encroachments: Utility, drainage, and access easements are common. Confirm how they affect improvements, future projects, or pools.
• City and county projects: Right-of-way dedications or public projects may impact use. Check with City of San Antonio planning and development for current notices.
• Floodplain: Title policies do not cover flood risk. Review the FEMA Flood Map Service Center to understand flood zones, and talk to your lender about flood insurance if required.

Who pays for title insurance in Texas

Local custom in Texas often has the seller pay for the owner’s title policy and the buyer pay for the lender’s policy. This is not a law, and your contract can allocate costs differently. Confirm the cost split in writing using your contract terms.

Local records to check before closing

A strong title review includes both the commitment and a few targeted public records:

• Bexar County Appraisal District: Ownership history, exemptions, and assessed values.
• Bexar County Clerk: Deeds, plats, easements, and recorded liens.
• Bexar County Tax Office: Confirm tax payment status and any tax liens at the county’s official site, Bexar County.
• Texas Land Title Association: Consumer education on fees and common practices.
• Texas Department of Insurance: Regulatory information on title insurance forms and premiums.

Buyer checklist for Dominion

• Request the Title Commitment early. Read Schedule A and Schedule B, and ask the title company to explain each exception.
• Decide on survey coverage. Order a current survey if needed and explore a survey endorsement for boundary and encroachment protection.
• Review HOA documents and the resale certificate. Confirm assessments, rules, and any pending special assessments.
• Verify taxes. Check ownership and exemptions with BCAD and confirm payment status with the Bexar County Tax Office.
• Ask about mineral reservations or severed estates. If minerals are excluded, request a plain-language explanation and options.

Seller checklist for Dominion

• Disclose known title issues early. Prior liens, divorce-related title changes, or heirship questions should be addressed with the title company as soon as possible.
• Provide HOA documents promptly. Be ready for resale certificate timing and fees.
• Clarify who pays for the owner’s policy in the contract. Align on customary practices or negotiate as needed.

Costs, timing, and what to expect

Title insurance is a one-time premium paid at closing. Premiums are based on the insured amount, and fees may include lender-required charges and optional endorsements. Because forms and premiums are regulated in Texas, request a written estimate from your title company for the specific property and your contract terms. The commitment usually arrives within a few days of opening escrow, and curative work can add time if complex items surface.

When to involve specialists

If you encounter complex chain-of-title issues, heirship questions, severed mineral estates, or a major boundary dispute, you may need help from an attorney, a mineral rights specialist, or a surveyor. Environmental issues are outside title insurance and may require separate consultants or coverage.

Smart questions to ask your title company

• Which Schedule B exceptions will remain on my policy, and which endorsements do you recommend for this specific property?
• Does the chain of title show mineral reservations or severed mineral interests?
• Are taxes current, and are there any judgment liens or red flags to clear before closing?
• Who is paying for the owner’s policy per our contract, and what are my exact premiums and fees?
• Can you provide the HOA resale certificate and a clear summary of any assessment-related risks?

Final thoughts

Title insurance protects you from costly surprises tied to the home’s past. In Dominion, a careful look at HOA restrictions, surveys, easements, taxes, and mineral rights can make the difference between a smooth closing and a stressful one. Read the Title Commitment early, ask direct questions about Schedule B exceptions, and add endorsements that match your property’s risks.

If you want a local, clear-headed walkthrough of your options and how to align coverage with your goals, reach out to Unknown Company to Schedule Your Free Consultation.

FAQs

What does title insurance cover for a Texas homeowner?

• A standard owner’s policy covers certain past-record title defects like forged deeds, unknown heirs, or missed liens, and it provides defense and payment for covered claims up to the policy amount.

How is title insurance different from homeowner’s insurance?

• Title insurance is a one-time premium that covers past title problems; homeowner’s insurance is ongoing coverage for future physical losses like fire or theft.

Who usually pays for the owner’s title policy in San Antonio?

• Local custom often has the seller pay the owner’s policy and the buyer pay the lender’s policy, but your contract controls the final agreement.

Will title insurance cover fence or boundary disputes in Dominion?

• Not usually. You may need a current survey and a survey endorsement to address boundary or encroachment issues.

How do HOA rules and assessments affect title in Dominion?

• HOA covenants and assessment obligations appear as recorded restrictions or exceptions. Certain HOA-related risks can be addressed with endorsements and by reviewing the resale certificate.

Are mineral rights included when I buy a home in Bexar County?

• Mineral rights may be reserved by others in the deed history. Severed mineral interests are typically listed as exceptions unless specifically insured; ask the title company to explain any mineral-related exceptions.