Protecting your property rights starts with the truth.

Title insurance is one of the most important—but least understood—aspects of a real estate transaction. Many Texas buyers, sellers, and even real estate professionals fall prey to outdated myths and misinformation. At Patten Title, we believe in helping you make informed decisions by separating fact from fiction.

1. “Title Insurance Offers Minimal Protection.”

Truth: Title insurance protects against serious issues like forged signatures, undiscovered liens, clerical errors, and claims from unknown heirs. These problems can threaten your ownership—even years after closing.

2. “Title Insurance Is Expensive and Requires Monthly Payments.”

Truth: In Texas, title insurance is a one-time fee paid at closing. No ongoing premiums. You’re covered for as long as you own the property.

3. “There’s Only One Type of Title Insurance.”

Truth: There are two key types:

• Owner’s Policy – Protects the buyer

• Lender’s Policy – Protects the lender until the mortgage is paid off

4. “Homeowner’s Insurance Covers the Same Thing.”

Truth: These are completely different. Homeowner’s insurance covers physical damage (like fire or theft). Title insurance protects your legal ownership from past problems with the title.

5. “Cash Buyers Don’t Need Title Insurance.”

Truth: Even without a lender, a title issue could result in legal fees or loss of property. An owner’s policy is still essential for protecting your investment.

6. “You Can’t Choose Your Own Title Company.”

Truth: In Texas, buyers have the right to select their title company—especially with federally related mortgage loans. You don’t have to go with your agent or lender’s suggestion.

7. “If a Title Search Was Done, Insurance Isn’t Necessary.”

Truth: Title searches are thorough—but not foolproof. Hidden risks like forged documents or missing heirs may only surface after closing. Title insurance steps in where searches leave off.

8. “Title Insurance Only Helps at Closing.”

Truth: Title insurance protects you for the entire time you own the property. A claim could arise years later—and your policy will still apply.

9. “All Policies Include Gap Coverage.”

Truth: Not necessarily. Some Texas policies don’t automatically include gap coverage (protection for the period between search and closing). Always verify with your title company.

In addition to the above, title insurance can protect against:

• Unpaid liens and unrecorded debts

• Gaps in the chain of title

• Forgery or fraud in prior documents

• Improper notarization or clerical errors

• Undisclosed heirs or conflicting wills

• Boundary disputes and survey issues

• Corporate or entity authorization failures

Agents are essential in guiding clients through the title insurance process. Here’s how they can make a difference:

• Educate buyers on what title insurance covers—and why it matters, even for cash purchases.

• Correct misconceptions by addressing myths early, especially regarding costs, policy types, and title company choice.

• Help clients shop smart by encouraging them to ask questions and compare title companies—reminding them they can choose their provider.

• Stay informed on policy endorsements, including gap coverage, so clients are fully protected.

• Partner with trusted title professionals (like Patten Title!) to ensure transactions are handled with care, speed, and accuracy.

When agents actively support their clients in understanding title insurance, they add value, build trust, and help ensure a more confident and secure real estate experience.