How to Choose a Title Company in Texas: What Most Buyers Don't Know
Here is something most Texas homebuyers do not know: you have the right to choose your own title company. Many buyers simply use whoever the seller, builder, or real estate agent recommends - sometimes an affiliated company that may not have your best interests at the center of the transaction. Understanding how to evaluate a title company and why your choice matters can protect your closing and your investment.
You Have the Right to Choose Your Title Company in Texas
Under the Real Estate Settlement Procedures Act (RESPA), no one can require you to use a specific title company as a condition of your home purchase - with limited exceptions for certain seller-paid services. Builders and sellers frequently recommend their preferred or affiliated title companies, and while there is nothing wrong with considering those recommendations, you are under no obligation to accept them. Shopping for a title company is as legitimate as shopping for a lender.
What to Look for When Choosing a Title Company
Look for a title company with a strong local reputation, experienced closing officers, clear communication practices, and a track record of on-time closings. Ask how they handle issues when they arise - because in real estate, something almost always needs attention before closing day. Look at Google reviews, ask your real estate agent for their honest recommendation, and consider whether the company's team is accessible by phone and responsive to your questions.
Affiliated vs. Independent Title Companies
Some builders and brokerages have affiliated title companies or receive marketing service agreements from title companies in exchange for referrals. These arrangements are legal but worth understanding. An independent title company - like Cottonwood Title & Escrow - has no obligation to any builder, brokerage, or lender. Our only obligation is to the transaction itself and to the parties at the closing table. That independence is valuable when a difficult issue needs to be resolved.
Texas Title Insurance Rates Are the Same Everywhere - So Choose on Service
Because Texas title insurance premiums are set by the TDI and are the same statewide, the price of your owner's title insurance policy will not vary significantly between title companies. What will vary is the quality of service, the experience of your closing officer, the clarity of communication throughout the transaction, and how smoothly your closing day actually goes. Choose on service - and choose a company that will pick up the phone when you call.