Buying a home in Murphy should feel exciting, not confusing. Still, once you see “title insurance” on your closing estimate, it is normal to have questions about what it covers, who pays, and how it works in Texas. You want to protect your investment and avoid surprises later.
This guide breaks down title insurance in clear terms. You will learn what is covered, how Texas sets rates, what to expect in the Murphy title process, the Collin County issues to watch, and how to choose a title company with confidence. Let’s dive in.
Title insurance basics
Title insurance protects you from losses caused by problems with a property’s title that already existed before you bought it. Think recorded liens, forgeries, undisclosed heirs, or recording errors. Unlike homeowner’s insurance, title insurance looks backward at past title issues, not future physical damage.
Owner vs. lender policies
- Owner’s title insurance protects your ownership interest and equity. It is optional but strongly recommended because it can cover legal defense and losses if a covered title defect pops up after closing.
- Lender’s title insurance protects the mortgage lender’s interest up to the loan amount. Lenders almost always require it. It does not protect you as the owner.
- These are separate policies. An owner’s policy does not protect the lender, and a lender’s policy does not protect you.
One-time cost and timing
- Title insurance is a one-time premium paid at closing. There are no annual payments.
- The title company performs a search and issues a title commitment before closing. The final policy is issued after closing once documents are recorded.
Title commitment vs. final policy
- The title commitment explains what will be insured, which exceptions will remain, and what requirements must be met before closing (like paying off liens or getting certain affidavits signed).
- The final policy is issued after those items are satisfied and your deed is recorded.
How title insurance works in Texas
Title insurance in Texas is regulated by the Texas Department of Insurance (TDI). Forms and rate practices are standardized, and companies must follow state rules. Because the state publishes rate schedules, prices are based on the sales price or loan amount.
- Ask your title company for a written quote that shows the owner’s and lender’s policy premiums plus any escrow or closing fees.
- You can verify how premiums are set by reviewing TDI’s consumer guidance and rate materials.
Who pays in Murphy and Collin County
In many Texas markets, including much of the Dallas–Fort Worth area, it is common for the seller to pay for the owner’s policy. This is not a rule. It is a local custom and fully negotiable in your contract. Confirm the terms with your agent.
Lenders usually require a lender’s policy. Whether the buyer or seller pays for the lender’s policy can vary by lender and local practice. Check your contract and your lender’s requirements.
The Murphy title process step by step
Here is what typically happens from contract to closing for a Murphy purchase:
- Open title/order. The title company is selected in your contract or by mutual agreement.
- Title search and exam. The title company reviews Collin County records for deeds, liens, easements, plats, judgments, and other items that affect title.
- Title commitment. You receive a commitment with Schedule A (deal details), Schedule B (exceptions), and requirements to clear before closing.
- Curative work. The title company works to clear issues such as paying off liens, obtaining releases, getting affidavits signed, or recording corrective documents.
- Closing and recording. You sign documents, funds are disbursed, instruments are recorded with Collin County, and your policy is later issued.
How long it takes can vary. A standard search and commitment may take several business days. If curative items are needed, it can take longer, sometimes weeks.
Collin County issues to watch
Murphy and surrounding Collin County suburbs include many planned communities and recorded plats. Here are common items that can appear in your title commitment:
- HOAs and assessments. Many Murphy neighborhoods have HOAs. Texas law allows HOAs to file liens and, in some cases, foreclose for unpaid assessments. The title company will request HOA payoff or estoppel letters and review Covenants, Conditions, and Restrictions (CCRs).
- Easements and restrictions. Subdivisions often include utility, drainage, sidewalk, or access easements and restrictive covenants that limit certain uses. These are usually standard but important to understand.
- Mineral rights reservations. In Texas, the mineral estate can be severed. Your surface ownership may not include oil, gas, and minerals. Your commitment often lists any recorded mineral reservations or leases.
- Taxes and prior liens. Property tax liens hold strong priority. Title also checks for unreleased mortgages, judgment liens, or tax liens tied to current or past owners.
- Survey and boundary concerns. Fences, patios, or improvements that cross a line can trigger exceptions. Lenders often require an updated survey. You can also ask about a survey-related endorsement for added protection.
- Probate and heirship gaps. If a prior owner passed away and the estate was never properly probated or recorded, extra documents may be required to fix the chain of title.
What title insurance usually does not cover
- Future zoning or permit issues unless a specific endorsement applies.
- Issues that arise after the policy date, except where an endorsement extends coverage.
- Known issues disclosed at closing or listed as exceptions in your commitment.
Endorsements worth discussing
Endorsements can add coverage for specific risks. Availability and cost vary by underwriter. Ask your title officer which apply to your property and loan.
- Survey/encroachment endorsement. Adds coverage for certain survey matters when a current survey is provided.
- HOA and assessment endorsements. Offer limited protection for HOA-related items and certain future assessments.
- Access and utilities endorsements. Insure legal access to a public road and certain utility easements.
- Zoning or subdivision endorsements. Provide limited protection related to zoning or subdivision compliance.
- Mineral-related endorsements. Clarify how severed mineral rights are treated, often with limited coverage.
- Gap or forgery endorsements. May add protection for recording gaps or forged documents.
How to choose a title company in Murphy
A smooth closing often comes down to the team doing the work behind the scenes. Consider:
- Local experience. Look for a title team familiar with Collin County Clerk records, typical HOA processes, and subdivision plats in Murphy.
- Underwriter strength. Many local title agents are backed by major national underwriters, which adds a layer of financial stability.
- Clear pricing. Request a written quote for the owner’s and lender’s policies plus escrow and closing fees.
- Responsiveness. Ask about turnaround time for the title commitment and the team’s plan to clear any issues.
- State oversight. TDI licenses title agents and maintains consumer information and rate guidance you can review.
Helpful local resources include the Collin County Clerk for recorded deeds, plats, and liens; the Collin County Appraisal District for tax and parcel details; and the City of Murphy Planning and Development pages for subdivision and plat information.
Buyer checklist for a Murphy closing
- Ask your agent who typically orders title in Murphy and who pays for the owner’s policy in current local practice.
- Review your title commitment closely, especially Schedule B exceptions.
- Request a current survey or discuss a survey-related endorsement.
- Obtain the HOA estoppel and review CCRs before your option period ends.
- Confirm which endorsements you want and the cost for each.
- Ask the title company to explain any curative requirements and timing.
- Get a written estimate of the final title premium and closing fees ahead of closing.
Put it all together
Title insurance in Texas is designed to protect you from past title problems, and it is priced by state schedules. In Murphy and across Collin County, most title questions boil down to understanding your commitment, clearing routine issues, and choosing endorsements that fit your property and loan. Your agent and title officer are your best guides for local custom, who pays for which policy, and which exceptions will remain at closing.
If you want a steady hand from contract to keys, our team is here to help you navigate each step, coordinate with a trusted local title company, and close with confidence. Reach out to Sarah Naylor for guidance tailored to your Murphy home purchase.
Sarah Naylor
FAQs
Do I need owner’s title insurance in Texas?
- It is optional but strongly recommended because it protects your ownership and equity from covered title defects that existed before you bought the home.
Who usually pays for the owner’s policy in Murphy, Texas?
- In many Texas deals the seller often pays for the owner’s policy, but it is a negotiable contract term. Confirm local custom and your specific contract.
How much does title insurance cost in Texas?
- It is a one-time premium based on the purchase price or loan amount, set by state rate schedules. Ask your title company for a written quote you can verify.
How long does the title process take in Collin County?
- Expect several business days for a search and commitment. If curative items are needed, it can extend to a few weeks depending on complexity.
What are common title red flags in Murphy and Collin County?
- HOA liens and assessments, recorded easements and CCRs, mineral rights reservations, survey encroachments, tax or judgment liens, and probate or heirship gaps.
What does title insurance not cover?
- It usually does not cover future zoning or permit issues, matters that arise after the policy date without an endorsement, or items listed as exceptions in your commitment.
