Title insurance is a unique insurance policy that protects the holder’s ownership in real property — in most cases, your home. Unlike other policies, title insurance is a one-time fee policy which protects the owner from past errors related to ownership history. Title coverage is based on the careful research of past ownership records and is designed to address any overlooked or outstanding issues prior to your taking possession of your property.

There is a push by some groups calling for comprehensive reform to the title insurance industry in Texas, similar to states like California, New York, Massachusetts, and New Jersey.

What does this mean for the real estate industry?
Texas property owners benefit greatly from having a stable and reliable title insurance industry with competitive rates, which, in fact, have dropped 15% over the last decade. Texas offers one of the most transparent and complete sets of coverage in the nation, with consistent rates applied evenly to all purchasers, residential and commercial alike.

The Texas REALTOR® position
Our association supports the current title insurance consumer protections which ensure competitive rates and comprehensive coverages.

Legislative outlook
A few bills may be filed relating to comprehensive reform of the title insurance industry. Just as in past legislative sessions, the Texas Legislature more than likely will not upend our state’s stable title insurance market.

Historical perspective
The Texas Legislature has agreed that our state’s stable title insurance market should not be altered.

In 2017, bills were filed that would have changed title insurance protections for consumers (HB 4239) and removed the authority of the Insurance Commissioner to set title insurance rates (SB 372); however, neither advanced through committees.