Buying a home in El Paso is exciting, but a surprise title problem can turn a smooth closing into a stressful one. You want to protect your investment and avoid headaches after you move in. In this guide, you’ll learn what title insurance is, how Texas rules affect your costs, and what to expect from local title companies during escrow and closing. Let’s dive in.
What title insurance covers
Title insurance protects you from certain title defects that existed before you bought the home but were not found in the public record search. These can include forged signatures, recording errors, undisclosed heirs, unpaid liens, or clerical mistakes.
You pay for title insurance once at closing. There are no monthly premiums. If a covered issue surfaces later, the insurer typically defends your title or pays covered losses up to your policy limit.
Owner vs. lender policies
There are two main policies, and they protect different interests.
- Owner’s title insurance protects your equity up to the policy amount, usually the purchase price. Coverage lasts as long as you or your heirs have an interest in the property. It is optional by law, but strongly recommended.
- Lender’s title insurance protects the mortgage lender up to the loan amount. It is usually required by your lender as a condition of closing and does not protect your equity.
If you are financing your purchase, you will likely have both policies at closing. The owner’s policy covers you. The lender’s policy covers the lender.
Texas rates and rules you should know
Texas regulates title insurance. The Texas Department of Insurance sets and oversees the rate structure that title insurers follow. In practice, this means the base premium is not freely negotiated the way some other closing costs might be.
- One-time premium. You pay once at closing. The owner’s policy premium is based on the purchase price. The lender’s policy is based on the loan amount.
- Discounts and credits. Texas rules allow certain credits in limited cases, such as simultaneous issue of owner and lender policies or when reissuing a policy if a prior policy exists. Eligibility and amounts follow state rules.
- Endorsements. You may choose add-on coverage for specific needs, such as survey-related coverage or access. These endorsements add to your premium and depend on your property and lender requirements.
Who pays in Texas
Payment of the owner’s policy is negotiable in the sales contract. In many parts of Texas, it is common for the seller to pay for the owner’s policy, but this is not a legal requirement. The lender’s policy is typically a buyer cost since it protects the lender’s interest.
Clarify who pays what early in negotiations. Your agent can help structure a clean offer that reflects local practice and your goals.
El Paso closing timeline: what to expect
Local title companies in El Paso handle escrow, title research, document preparation, and recording with the El Paso County Clerk. Here is the typical flow from contract to keys:
Offer accepted
-> Escrow opened & deposit placed with title/escrow agent
-> Title search + Title Commitment issued (days to weeks)
-> Curative work / lender requirements resolved
-> Loan funding & closing signing at title company
-> Documents recorded at El Paso County Clerk
-> Title policies issued to owner and lender
During this process, the title company will search county records, prepare a title commitment listing the exceptions and requirements, coordinate payoffs, and clear issues that can be cured. You will usually sign closing documents at the title company’s office, or remotely if your lender permits. Policies are typically issued after recording.
Typical costs at closing
Your final numbers will depend on your purchase price, loan amount, and any endorsements. Common items include:
- Title insurance premiums. Separate owner and lender premiums, calculated under Texas rules.
- Endorsement fees. Optional add-ons based on property or lender needs.
- Escrow or settlement fees. The title company’s fee for handling escrow and closing.
- Recording and county fees. Charges for recording the deed and mortgage with El Paso County.
- Other small items. Wire, courier, document prep, and payoff processing.
Many of these fees can be negotiated in your contract or split based on local practice. Review your Closing Disclosure early so there are no surprises.
Common exceptions to review
Your title commitment will list exceptions. Read these carefully and ask questions.
- Easements and rights-of-way. Utility or access easements are common and usually remain as exceptions.
- Deed restrictions and HOA matters. Review any use restrictions, architectural rules, and potential fees.
- Unreleased liens or judgments. These typically must be paid or released before you receive clear title.
- Mineral reservations. In Texas, mineral rights may be severed from the surface. These reservations often stay as exceptions and can affect surface use.
If an issue cannot be cured, the title company may explain options, such as leaving an exception in place or considering special endorsements if available.
Smart questions to ask your title company
Go into closing with clear expectations. Here are helpful questions:
- Who is paying for the owner’s policy in our contract, and is that typical here?
- What exceptions are on my title commitment, and can any be cured or insured over?
- Which endorsements make sense for this property and lender?
- How long after closing will recording and final policy issuance take?
- How are escrow funds handled, and when are disbursements made?
- What identification or funds do I need to bring to closing?
Closing day checklist
Arrive prepared and the signing will go smoothly.
- Bring a valid government ID for all signers.
- Confirm your final cash-to-close and wire funds per the title company’s instructions.
- Review your Closing Disclosure ahead of time and bring any questions.
- Expect to sign many documents. Your title agent or notary will guide you.
- Keep copies of what you sign. The final owner’s policy typically follows after recording.
Final thoughts for El Paso buyers
Title insurance is a one-time purchase that helps protect your ownership and peace of mind. In Texas, rates are regulated, coverage options are well defined, and local title companies in El Paso manage the heavy lifting from escrow to recording. When you understand owner versus lender policies, who pays what, and how the process works, you can close with confidence.
If you would like a clear walkthrough of fees, timelines, and local title company options, reach out to the team that knows El Paso neighborhoods inside and out. Connect with Tracie Musshorn for calm, step-by-step guidance.
FAQs
Do I need an owner’s policy if my lender requires one?
- Yes. A lender’s policy protects the lender only, while an owner’s policy protects your equity and legal interest.
How are title insurance rates set in Texas?
- Texas regulates title insurance through state rules, so base premiums follow set rates rather than open negotiation.
Who usually pays for the owner’s policy in El Paso?
- Payment is negotiable in the contract; in many Texas areas sellers often pay, but it depends on the deal.
How long after closing do I get my owner’s policy?
- Policies are typically issued after the deed and mortgage are recorded with the county, which can take days to weeks.
What title issues are common in Texas purchases?
- Common items include easements, deed restrictions or HOA matters, mineral reservations, and releases of prior liens or judgments.
