Title Insurance: Who Really Pays in Texas & Kingsland?

Are you wondering who picks up the tab for title insurance in a Kingsland home sale? You are not alone. When you are buying or selling near Lake LBJ, title details can feel technical, yet they have a real impact on your bottom line and peace of mind. In this guide, you will learn what an owner’s title policy does, who typically pays in Central Texas, and how to negotiate smartly in Llano County. Let’s dive in.

What title insurance covers in Texas

Title insurance protects you against covered losses tied to problems with past ownership. An owner’s policy covers your equity in the property. A lender’s policy protects the mortgage lender’s interest if you are financing.

Typical covered issues include prior recorded liens, unpaid property taxes not shown as paid at closing, forged documents, filing mistakes, and undisclosed heirs. If a covered claim hits, the policy also covers the cost to defend your title in court.

Standard policies exclude certain items. Common exclusions include zoning and land use rules, environmental matters, issues that arise after the policy date, and survey or boundary disputes unless you add a specific endorsement. You can purchase endorsements, like survey or access endorsements, to expand protection based on the property’s risks.

In Texas, title premiums and key forms are regulated. You pay the premium once at closing, and your owner’s policy remains in force for as long as you or your heirs have an interest in the property. The policy amount for owners usually equals the purchase price. The lender’s policy amount equals the loan amount.

Who pays in Texas and Kingsland

Across Texas, the common practice is that the seller pays for the owner’s title insurance policy. The buyer typically pays for the lender’s policy when there is a mortgage. This custom holds in Central Texas, including Llano County and the Lake LBJ area.

That said, it is negotiable. Market conditions, property type, and the specifics of the deal can shift who pays. Your purchase agreement should clearly state the title company and how title costs are allocated.

When buyers may pay the owner’s policy

• New construction, vacant land, or investor-driven sales where the seller offers less in closing concessions.
• Highly competitive listings where a buyer offers to cover more costs to strengthen the offer.
• Transactions involving complex title issues where buyers want control over endorsements and timing.

When sellers sometimes cover more

• Softer markets where sellers offer concessions, like paying the lender’s policy or select endorsements, to attract buyers.
• Unique or high-value properties where parties trade cost allocations to reach agreement.

Who chooses the title company

In Texas, the contract names the title company or sets how it is chosen. Either side can propose a title provider. Customs vary by area, so make sure the contract clearly states the selection to avoid delays.

Kingsland and Lake LBJ title specifics

Waterfront and Hill Country properties come with local title nuances. Paying attention to these items early can save you time and stress.

Mineral rights and reservations

Prior deeds in Texas may reserve mineral rights. If minerals were severed from the surface estate, that reservation will appear as an exception in title work. Insurers often exclude mineral matters unless a specific endorsement applies, so verify what you are actually receiving.

Waterfront, access, and shoreline use

Lake LBJ parcels may include recorded easements for boat ramps, community access, or flood control. Confirm shoreline rights, dock permissions, and any easements that affect how you can use the property. Some of these items may require endorsements to be covered.

Surveys and metes-and-bounds

Many Hill Country properties rely on metes-and-bounds descriptions. Older or incomplete surveys can leave gaps that become title exceptions. A new survey or a survey endorsement is commonly recommended, especially for irregular or waterfront lots.

Covenants and POA rules

If the property is in a subdivision or Property Owners’ Association, recorded covenants and possible POA liens appear in the title commitment. Review these carefully to understand architectural, use, or shoreline restrictions.

Taxes and special assessments

Llano County property taxes and any special assessments must be cleared at closing. Expect these items to appear in title searches. If something is unpaid, it is typically handled with seller proceeds or as part of curative work.

Recommended endorsements near Lake LBJ

Endorsements are optional and add cost, but they can boost your protection:

• Survey or Location Endorsement to address boundary and encroachment issues referenced by a current survey.
• Access Endorsement to confirm legal access to the property by a public way.
• Mineral-related Endorsements where available to address recorded mineral reservations or related exceptions.

Discuss which endorsements fit the property’s risks, and negotiate who pays for them as part of your contract.

What you can negotiate in your contract

You have options. Here are common points to address up front so there are no surprises at closing:

• Who pays the owner’s title policy premium.
• Who pays the lender’s title policy.
• Who pays for endorsements, title exam fees, and recording fees.
• Whether a new survey is required and who pays for it.
• How costs are handled if multiple parcels close together.

Sample cost-allocation approaches

• Seller pays the full owner’s policy premium in the amount of the sales price.
• Buyer pays the owner’s policy and any endorsements requested by the buyer.
• Seller contributes a fixed dollar amount toward the owner’s policy, and the buyer covers the rest.

Work with your agent to align these terms with your strategy and the current market.

Practical steps for Kingsland sellers

• Expect to be asked to pay for the owner’s policy in a typical resale. Budget for possible extras like endorsements or a survey if the buyer requests them.
• Share your existing survey, prior title policy, recorded easements, mineral reservations, and POA documents with the title company early. This speeds up curative work and reduces last-minute issues.
• If special endorsements or curative steps are likely, discuss cost-sharing with the buyer during negotiations rather than at the closing table.

Practical steps for Kingsland buyers

• Request the title commitment early. Read Schedule B exceptions closely for mineral reservations, easements, POA covenants, and shoreline restrictions.
• Order a new survey if one is not current or acceptable. For waterfront properties, a fresh survey is often worth it.
• Ask two local title companies for written estimates of the owner’s and lender’s policies plus endorsements. Compare coverage, not just price.
• If the seller will not pay the owner’s policy, negotiate a credit, a price adjustment, or a split of specific costs.

If title defects surface

If the title search uncovers an issue, you have several paths to resolution:

• Seller cure at or before closing by paying off liens or correcting deed errors.
• Curative steps handled through the title company using seller proceeds.
• Accepting a title exception if the issue cannot be cleared and the risk is acceptable to you.
• Renegotiating price or terms, or terminating under your contract if allowed by your contingencies.

Costs and policy length at a glance

• The owner’s policy is a one-time premium paid at closing. It stays in effect for as long as you or your heirs have an interest in the property for covered matters.
• The lender’s policy is separate and typically required if you finance the purchase.
• Exact premiums depend on the purchase price and any endorsements. Ask the title company for a written estimate before you finalize terms.

When you want a calm, clear path from offer to closing, local guidance matters. For tailored strategies around title costs and risk in Kingsland and Lake LBJ communities, connect with Martha Stclair. Schedule a Consultation and move forward with confidence.

FAQs

Who usually pays owner’s title insurance in Texas?

• In most Texas resales, including Kingsland, the seller typically pays the owner’s policy, but it is negotiable and should be stated in the contract.

What does an owner’s title policy cover for a Kingsland home?

• It protects your ownership against covered pre-existing defects like recorded liens, forged documents, and certain record errors, and covers defense costs for covered claims.

Does title insurance cover boundary or survey problems on Lake LBJ lots?

• Standard policies usually exclude survey and boundary disputes, but a survey or location endorsement can add protection if supported by an acceptable current survey.

How long does owner’s title insurance last in Texas?

• The policy lasts as long as you or your heirs retain an interest in the property for covered matters, with no ongoing premiums after closing.

Who picks the title company in a Kingsland transaction?

• The purchase contract names the title company or sets a selection method, and either party can propose a provider, subject to agreement.

If the seller will not pay the owner’s policy, what are my options?

• You can negotiate a seller credit, split costs, adjust the price, or pay the premium yourself if the protection and overall deal still meet your goals.