You finally found the right home in Cedar Park, but the title paperwork feels like a different language. You are not alone. Title insurance is one of the most important parts of a Texas closing, yet it is often the least understood. In this guide, you will learn what title insurance covers, who usually pays in Cedar Park, how to read your title commitment, and the local issues to watch before you sign. Let’s dive in.
What title insurance covers in Texas
Title insurance protects you from losses caused by problems with a home’s ownership history that existed on the day your policy starts. It is different from homeowner’s insurance because it is a one-time premium that you pay at closing for long-term protection.
Common covered issues include forged documents in the chain of title, recording mistakes, unknown heirs, and undisclosed liens that should have been cleared. Policies also help with errors in legal descriptions and other public-record defects, subject to the policy terms.
Keep in mind what title insurance does not cover. It generally does not cover things that happen after you close, like new easements or zoning changes, unless you add specific endorsements. It also usually excludes environmental issues and many survey-related matters unless you address them in the commitment and policy.
Owner’s vs. lender’s policies
There are two distinct policies, and they protect different people.
- Owner’s Policy. This protects your ownership interest, usually up to the purchase price. It is optional but strongly recommended because it protects your equity and rights as an owner.
- Lender’s Policy. If you finance the purchase, your lender will require a policy that protects the loan amount. It covers the lender’s security interest if a covered title defect affects the mortgage.
Coverage amounts differ. The owner’s policy is usually for the purchase price. The lender’s policy equals the mortgage balance and can decline as you pay down the loan. Both policies can be expanded with endorsements for specific risks, such as survey coverage, access, restrictive covenants, subdivision matters, homestead protections, and in some cases issues related to mineral reservations. Endorsements cost extra but can be worth it for peace of mind.
Owner’s policies typically remain in effect as long as you or your heirs own the property. Lender’s policies usually last until the loan is paid off.
Who usually pays in Cedar Park
In Texas, payment for title insurance is negotiable in the contract. Across the Austin metro, including Cedar Park and much of Williamson County, the common custom is that the seller pays for the owner’s policy and the buyer pays for the lender’s policy. Your contract can change this, so do not assume. Confirm the terms in writing.
Texas title premiums are regulated. You pay a single, one-time premium at closing tied to the purchase price. Ask the title company for a written quote. If the seller’s policy is recent, you may qualify for a reissue or reduced premium in some cases. You will also see other title-related fees on your closing statement, such as settlement, recording, courier, and tax certificates. These charges are also negotiable and guided by local practice and your contract.
How to read your title commitment
Your title commitment is the road map to your final policy. It tells you what will be insured and what conditions must be met before closing.
Schedule A: Verify the basics
Check that your name, the seller’s name, the legal description, and the policy types and amounts are correct. If anything is off here, ask for a fix right away.
Schedule B-1: Requirements to close
This section lists what must be done before the title company will issue your policy. You might see payoffs for prior loans, releases of liens, affidavits, tax certificates, or curative documents. These items can affect timing, so confirm who is responsible for each requirement and whether it could delay closing.
Schedule B-2: Exceptions to coverage
This section lists things your policy will not cover unless they are removed or insured with an endorsement. Common examples include recorded easements, covenants and restrictions, municipal ordinances, and assessment liens. Read each exception and ask the title agent to explain it in plain language. Understand how these items may affect your use of the property.
Red flags to watch
- Open liens or judgments that still need releases.
- Gaps or irregularities in the chain of title.
- Mineral reservations or severed mineral estates that could affect surface use.
- A broad survey exception or no recent survey on file.
- HOA covenants, special assessments, or pending HOA issues.
- Unpaid taxes, MUD bonds, or pending assessments.
Endorsements to consider
Ask which endorsements are available and recommended for your property. Common choices in Texas include survey-related coverage, access, restrictive covenant, subdivision, and homestead endorsements. Where mineral reservations appear, specialized review may be wise.
Local issues Cedar Park buyers should check
Mineral rights
Severed mineral rights are common in Texas. Your commitment will disclose recorded reservations. Mineral ownership can affect surface rights and plans for future improvements. If you see mineral language you do not understand, ask for clarification and consider specialist review.
Municipal Utility Districts and special districts
Many fast-growing areas in Williamson County include MUDs or similar districts that fund infrastructure with bonds and assessments. These can show up as liens or obligations. Be sure the title commitment and tax certificates address any district debt or assessments.
HOAs, covenants, and plats
Cedar Park neighborhoods often have homeowners associations. Your commitment should reference recorded covenants and restrictions. Request HOA documents and an estoppel letter to confirm current assessments and any known issues. In planned subdivisions, check plat notes and recorded easements that may limit where you can build or place improvements.
Surveys and fences
Survey exceptions are common in Texas commitments. If there is no recent survey, consider ordering one. Confirm lot lines, building lines, easements, and fence locations. An updated survey can help you request a survey-related endorsement and avoid future boundary disputes.
Floodplain, drainage, and access
Check whether the property is affected by drainage or floodplain references in the commitment. Drainage and access easements can limit use. Ask the title agent to explain how these items apply to the lot.
County records and jurisdiction
Cedar Park spans Williamson County and a small portion of Travis County. Make sure you know which county holds the official records for your property. Your commitment will cite the correct county, clerk records, and instrument numbers.
Step-by-step checklist for buyers
Before or at contract
- Clarify in the contract who pays for the owner’s and lender’s policies.
- Ask for a preliminary title commitment as soon as it is available.
- Request an estimate of title premiums and related closing fees.
After you receive the commitment
- Verify names, policy types, and the legal description in Schedule A.
- Review Schedule B-1 requirements and confirm who will satisfy each item.
- Read Schedule B-2 exceptions and ask for plain-English explanations.
- Decide which endorsements to request and get quotes.
- If the property has an HOA, request governing documents and an estoppel letter.
- Obtain or update a survey and address the survey exception.
- Ask whether any reissue or reduced rates apply based on prior policies.
At closing and after
- Confirm that required releases and payoffs are in place.
- Keep copies of the closing statement and recorded documents.
- Watch for the final owner’s policy to arrive after recording and store it permanently.
- If a title issue appears later, contact the title company quickly. Prompt notice can be required for coverage.
How a local advisor can help
Title insurance affects your rights and long-term costs. A strong advisor helps you spot issues early and negotiate smart. With a process-driven approach, local knowledge across Cedar Park and Williamson County, and a focus on clear communication, you can move through title review with confidence.
Here is how a hands-on agent supports you:
- Confirms who pays for title policies and aligns the contract with local custom and your goals.
- Coordinates with the title company for fast commitments and clear timelines.
- Reviews Schedules A, B-1, and B-2 with you in plain English.
- Helps you compare endorsements, surveys, and costs.
- Requests HOA documents and flags MUD or assessment items to address.
- Keeps closing on track by following up on releases, payoffs, and curative items.
If you are buying in Cedar Park or nearby suburbs, you deserve a smooth, informed closing. Ready to take the next step with a local, process-focused guide? Reach out to Briana Headley.
FAQs
What is the main purpose of title insurance in Texas?
- It protects you from losses caused by defects in the property’s ownership history that existed on the policy date, such as undisclosed liens, recording errors, or forged documents.
What is the difference between an owner’s policy and a lender’s policy?
- The owner’s policy protects your equity, usually up to the purchase price, while the lender’s policy protects the mortgage company up to the loan amount and is typically required when you finance.
Who typically pays for title insurance in Cedar Park, Texas?
- Custom in the Austin area is for the seller to pay for the owner’s policy and the buyer to pay for the lender’s policy, but the contract controls and terms are negotiable.
What should I focus on in a title commitment before closing?
- Verify Schedule A, review B-1 requirements for closing tasks, and read B-2 exceptions to understand easements, covenants, liens, and other limits on coverage.
Do Texas title policies cover issues that arise after closing?
- Generally no. Standard policies cover defects that existed on the policy date. Certain endorsements can add coverage for specific risks.
Are mineral rights a concern for Cedar Park homes?
- They can be. Mineral reservations are common in Texas and can affect surface use. Review the commitment for mineral language and ask questions if anything is unclear.
What are MUDs and why do they matter in Williamson County?
- Municipal Utility Districts fund infrastructure through bonds and assessments. These can appear as liens or obligations, so check your commitment and tax certificates.
