The short answer
A brand-new house does not eliminate title risk because the land and its ownership history existed before the house. In Texas, an owner’s title policy protects the buyer against covered ownership problems, while a loan policy protects the mortgage lender—not the homeowner. Before a North DFW new-build closing, review the title commitment, Schedule B exceptions, legal description, survey, policy costs, and wire instructions with the title company and the appropriate professionals.
When you are buying a new home in Aubrey, Little Elm, Celina, Prosper, Frisco, or another North DFW community, it is easy to focus on the physical house: selections, inspections, walkthroughs, utilities, and the closing date.
Title work answers a different question: What ownership interest is being transferred, and what exceptions will remain?
The Texas Department of Insurance says title insurance protects against covered ownership problems that arose before the purchase. Examples can include unpaid property taxes, fraud or forgery in earlier documents, and claims by an unknown heir or spouse. A newly constructed home can still sit on land with a prior ownership history, recorded restrictions, easements, liens, or other title matters.
Title insurance does not replace a new-home inspection, builder warranty, survey, homeowners insurance, or legal advice. It addresses covered title risks.
The owner’s policy protects the buyer
TDI says an owner’s policy protects the homeowner from covered ownership problems that existed before purchase but were unknown at the time. It generally remains in force for as long as the insured owner or heirs own the land, subject to the policy terms.
The policy amount is typically tied to the purchase price. The buyer pays the premium once at closing unless the contract assigns that cost to another party. In Texas, the buyer and seller may negotiate who pays the premium.
Read the actual policy and commitment. Coverage is not unlimited, and listed exceptions or exclusions are not insured.
The loan policy protects the lender
Most mortgage lenders require a loan policy. TDI explains that this policy protects the lender’s interest until the mortgage is paid off. It covers up to the loan principal under the policy terms.
A loan policy is not a substitute for an owner’s policy. If a covered title claim threatens ownership, the lender’s policy protects the lender. The owner needs an owner’s policy for the buyer’s covered interest.
When an owner’s policy and loan policy are issued simultaneously in Texas, TDI says the loan policy is generally issued at a discounted $100 premium, plus any lender-required endorsement fees. If no owner’s policy is purchased, the loan policy is charged at its full regulated price.
The title commitment comes before the policy
The title commitment is the pre-closing document showing the title company’s willingness to issue a policy if stated conditions are satisfied. It is not the final policy.
TDI says the commitment identifies potential issues, exclusions, and exceptions. Items shown in Schedule B may become exceptions in the final policy, meaning they are not covered.
Review at least these items:
- Names and ownership: Are the buyers’ names and vesting instructions correct?
- Legal description: Does it match the lot, block, subdivision, and property you agreed to buy?
- Requirements: What must be completed or cleared before the policy will be issued?
- Schedule B exceptions: Which easements, restrictions, mineral matters, utility rights, setback lines, or other recorded items will remain?
- Taxes and assessments: Are there outstanding taxes, liens, or recorded assessments that must be addressed?
- Survey relationship: Does the legal description align with the survey and improvements?
Comparing the legal description and survey
TDI advises comparing the policy’s legal description with the survey. It also notes that title insurance does not protect against boundary disputes unless additional coverage is purchased. Ask the title company and surveyor what the available coverage and survey requirements mean for the specific transaction.
Can the builder require a particular title company?
TDI’s consumer guidance says a buyer may choose any title company and does not have to use one selected by a real estate agent, builder, or lender. It also cites federal RESPA restrictions on a seller conditioning the sale on use of a specific title insurance company.
That does not mean every closing-cost offer is identical. A builder may tie a promotional credit to permitted terms, and escrow or other closing fees can vary even though Texas title-policy premium rates are regulated. Ask for the incentive and title costs in writing, compare the complete cash-to-close, and obtain legal guidance if a contract provision is unclear.
TDI says Texas title-policy language is standardized and title-insurance premium rates are regulated. Shopping can still matter because service, communication, escrow fees, delivery charges, and other closing costs may differ.
Wire-fraud protection belongs in the closing plan
TDI warns that real-estate transactions are targets for wire-transfer fraud. Before sending funds:
- Save a verified phone number for the title company early in the transaction.
- Treat any last-minute email changing wire instructions as suspicious.
- Call the title company using the known number—not a number in the suspicious email—to verify instructions.
- Confirm receipt immediately after sending the wire.
Who verifies wiring instructions?
Clarissa can help keep the closing contacts and deadlines organized, but only the title company should give and verify its wiring instructions.
A practical new-build title checklist
Before closing, ask:
- Who is issuing the owner’s policy and loan policy?
- Who pays each title premium under the contract?
- Have I received and reviewed the current title commitment?
- Are all Schedule B exceptions understandable and acceptable?
- Does the legal description match the contract and survey?
- Are any title requirements still open?
- Is additional survey or boundary coverage available and appropriate?
- Which title, escrow, recording, tax-certificate, or delivery fees appear on the closing documents?
- Have I independently verified the wire instructions?
- When should I expect the final owner’s policy, and where will I keep it?
When to bring in an attorney or title agent
Questions about legal effect, easements, mineral rights, or exceptions may require a Texas real-estate attorney. Questions about policy coverage belong with the licensed title agent or TDI.
Building in North DFW? Keep title on your checklist
Building in Aubrey, Little Elm, Celina, Prosper, Frisco, or elsewhere in North DFW? Clarissa can help you keep the contract, inspections, title commitment, lender requirements, and closing timeline on one checklist. Call or text 469-253-7506 or request a no-pressure strategy call at https://www.clarissasellsitalldfw.com/contact.
Related guides
Frequently asked questions
Do I still need to think about title insurance if the house is brand new?
Yes. The building may be new, but the land and recorded ownership history are not. Title work can identify prior ownership issues, liens, restrictions, easements, tax matters, and other recorded interests.
Does the lender’s title policy protect me?
No. TDI says the loan policy protects the lender’s interest. An owner’s policy protects the homeowner against covered title risks.
Are Texas title-insurance rates different at every company?
TDI says title-insurance premium rates are regulated and companies charge the same policy premium. Escrow fees and other closing charges may vary, so review the entire estimate.
Can I choose the title company for a new-build purchase?
TDI says buyers may choose any title company and are not required to use one selected by the builder, agent, or lender. Contract terms and incentives should still be reviewed carefully.
Is the title commitment the same as the final policy?
No. The commitment is issued before closing and describes conditions, exceptions, and exclusions under which the company is willing to insure. The final policy is issued after closing.
Does title insurance cover construction defects?
No. Construction quality, repairs, and warranty claims are different from title risks. Use independent inspections and review the builder warranty and contract.
Sources
- Texas Department of Insurance — What is title insurance? Why do I need it for my new house? — as of Updated August 27, 2025; rechecked October 27, 2026
- Texas Department of Insurance — Title insurance FAQ — as of Updated March 19, 2024; rechecked October 27, 2026
- Texas Department of Insurance — Owner’s Policy — as of Updated December 4, 2023; rechecked October 27, 2026
- Texas Department of Insurance — Loan Policy — as of Updated December 4, 2023; rechecked October 27, 2026
General education only, not legal or insurance advice. Coverage, exceptions, endorsements, survey requirements, contract allocations, and closing costs depend on the policy, commitment, contract, property, and transaction. Confirm policy questions with a Texas-licensed title agent or TDI and legal questions with a Texas attorney. Clarissa Jackson and Orchard Brokerage are not title insurers.