FAQ — Title Insurance & Closing Questions | KLR Legal

Question 1

What is title insurance and do I really need it?

Accepted Answer

Title insurance protects you against financial loss from defects in a property's title — things like unknown liens, forged documents, errors in public records, or undisclosed heirs. Unlike other insurance that protects against future events, title insurance protects against past events that could surface after you close. In Texas, lenders require a Loan Policy; an Owner's Policy is optional but strongly recommended. A one-time premium at closing covers you for as long as you own the property.

Question 2

What is the difference between an Owner's Policy and a Loan Policy?

Accepted Answer

An Owner's Policy protects the buyer's equity in the property. A Loan Policy (also called a Lender's Policy) protects the lender's interest up to the loan amount. If you're financing your purchase, your lender will require a Loan Policy. The Owner's Policy is separate and protects you — not the bank. When both are issued at the same closing, you benefit from the Texas simultaneous issue rate, which reduces the Loan Policy premium to $100.

Question 3

How is the title insurance premium calculated in Texas?

Accepted Answer

Texas title insurance premiums are set by the state — every licensed title company charges the same rate. The premium is based on the policy face amount (sales price for an Owner's Policy; loan amount for a Loan Policy) using the Texas Department of Insurance promulgated rate schedule. You can use our Closing Cost Calculator to get an instant estimate.

Question 4

What does title insurance NOT cover?

Accepted Answer

Title insurance covers defects that existed before your policy date. It does not cover issues that arise after closing — such as new liens you create, zoning changes, or boundary disputes that arise from a new survey. It also doesn't cover physical condition of the property (that's what a home inspection is for).

Question 5

How long does title insurance last?

Accepted Answer

An Owner's Policy lasts as long as you or your heirs have an interest in the property — there are no renewal premiums. A Loan Policy lasts until the mortgage is paid off.

Question 6

What happens at a real estate closing?

Accepted Answer

At closing, the buyer and seller (and their agents and lender, if applicable) meet to sign all final documents. The buyer signs the loan documents and closing disclosure, the seller signs the deed transferring ownership, funds are disbursed, and the deed is recorded with the county. KLR Legal coordinates all of this — we prepare the documents, handle the escrow, and make sure every party gets what they need.

Question 7

How long does a closing take?

Accepted Answer

Most residential closings take 30–60 minutes. Commercial closings can take longer depending on complexity. The title search and preparation work happens in the days leading up to closing — by the time you sit down to sign, everything should be ready.

Question 8

What do I need to bring to closing?

Accepted Answer

Buyers should bring: a government-issued photo ID, a cashier's check or wire transfer confirmation for closing funds (personal checks are generally not accepted), and proof of homeowner's insurance. Sellers should bring a government-issued photo ID and any keys, garage door openers, or access codes for the property. See our Resources page for a full closing checklist.

Question 9

Can I close remotely or via mail-away?

Accepted Answer

Yes. KLR Legal can accommodate remote closings and mail-away signings for buyers or sellers who cannot attend in person. Contact us to arrange the logistics — we work with mobile notaries and remote online notarization (RON) when available.

Question 10

What is a title commitment?

Accepted Answer

A title commitment (also called a title binder) is a promise by the title company to issue a title insurance policy after closing, subject to certain conditions. It lists the legal description of the property, the current owner, any existing liens or encumbrances, and the requirements that must be met before the policy is issued. Your attorney will review the commitment and work to clear any issues before closing day.

Question 11

What is a title search?

Accepted Answer

A title search is a review of public records — deeds, mortgages, court judgments, tax records, and more — to trace the chain of ownership and identify any claims or defects affecting the property's title. KLR Legal orders and reviews the title search as part of every closing.

Question 12

What closing costs should I expect as a buyer in Texas?

Accepted Answer

Buyer closing costs in Texas typically include: title insurance premiums (Owner's and Loan Policy), settlement/escrow fee, recording fees, lender fees (origination, appraisal, credit report), prepaid items (homeowner's insurance, property taxes, prepaid interest), and possibly a survey fee. Use our Closing Cost Calculator for a detailed estimate based on your specific transaction.

Question 13

What closing costs does the seller pay?

Accepted Answer

In Texas, sellers typically pay: real estate agent commissions, their share of the title insurance premium (in some transactions), recording fees for releasing existing liens, any outstanding property taxes prorated to the closing date, and any negotiated seller concessions. The exact split is negotiable and spelled out in the purchase contract.

Question 14

Are title insurance rates negotiable in Texas?

Accepted Answer

No. Texas title insurance premiums are promulgated (set) by the Texas Department of Insurance. Every licensed title company in the state charges the same rate for the same coverage. You cannot negotiate the premium, but you can compare service quality, experience, and turnaround time.

Question 15

What is the settlement or escrow fee?

Accepted Answer

The settlement fee (also called the escrow fee or closing fee) is charged by the title company for coordinating and conducting the closing — preparing documents, managing the escrow account, disbursing funds, and recording documents. KLR Legal charges a flat $750 per side.

Question 16

What is a tax certificate and why do I need one?

Accepted Answer

A tax certificate is an official document from the county tax office confirming the current status of property taxes — whether they are paid, delinquent, or have any pending assessments. It is required at closing to ensure the buyer does not inherit unpaid taxes. KLR Legal obtains this as part of the closing process.

Question 17

What types of real estate documents does KLR Legal prepare?

Accepted Answer

We prepare a wide range of real estate documents including warranty deeds, deeds of trust, releases of lien, transfer on death deeds (TODD), powers of attorney, affidavits of heirship, easement agreements, deed restrictions, loan modifications, and more. See our full fee schedule on the Document Order page.

Question 18

How quickly can you prepare documents?

Accepted Answer

Standard turnaround is 1–2 business days. Rush (same-day) service is available for time-sensitive transactions. Contact us at 972-733-3800 or Bob@klrlegal.com to discuss your timeline.

Question 19

Do I need an attorney to prepare a deed in Texas?

Accepted Answer

Texas law does not require an attorney to prepare a deed, but it is strongly recommended. Errors in a deed — wrong legal description, missing language, improper execution — can cloud title and create costly problems down the road. KLR Legal prepares all documents with the precision of a licensed real estate attorney.

Frequently Asked Questions

Your Next Closing
Deserves Better Protection.

Frequently Asked Questions — KLR Legal

Frequently Asked Questions

Your Next ClosingDeserves Better Protection.

Your Next Closing
Deserves Better Protection.