Texas Title Commitment, Explained for Austin Buyers

Buying a home in South Austin is exciting, but one document can make or break your closing timeline: the Texas title commitment. If you have ever wondered what it covers, what it excludes, and what you must do before your option period ends, you are not alone. With a clear game plan, you can spot issues early, protect your plans for the property, and keep your closing on track. This guide breaks down the commitment in plain English, highlights common South Austin exceptions, and gives you a practical checklist to use with your agent and the title company. Let’s dive in.

What a Texas title commitment is

A title commitment is the title company’s promise to issue title insurance after specific requirements are met. It is not the policy itself. Think of it as a roadmap that tells you what must be cleared before closing and what the policy will not insure.

The commitment follows a standard structure in Texas:

• Schedule A: Basic facts about your deal, including who is insured, policy amount, the estate being insured (often fee simple), legal description, and the effective date.
• Schedule B, Part I (Requirements): Items that must be satisfied before the policy can be issued, such as payoffs, releases, affidavits, corrective deeds, or probate documents.
• Schedule B, Part II (Exceptions): Matters that the policy will not cover unless removed or insured by endorsement, such as recorded easements, restrictive covenants, taxes not yet due, mineral reservations, or rights of parties in possession.
• Conditions and Definitions: Standard conditions that apply to the commitment.

A key concept: the commitment is a snapshot as of the commitment date. Events recorded after that date are typically not covered unless addressed later. You can learn more about what a title commitment is and how coverage works from the Texas Department of Insurance and the American Land Title Association. For a solid consumer overview, review the TDI materials and ALTA explanations on their sites at Texas Department of Insurance and American Land Title Association.

Where it fits in your Austin timeline

Once your contract is executed, the title company opens the file and researches public records. In many cases the commitment arrives within a few business days, often 1 to 3 days, depending on complexity and caseload. Your goal is to receive it early enough in your option period to review and respond.

• Option period: In Texas, resale contracts commonly include an option period, often 5 to 10 days, that lets you inspect and terminate. You want the commitment in hand early in this window so you can request cures or consider termination if needed. The Texas Real Estate Commission publishes the standard resale contract forms that reference these timelines, which you can reference at Texas Real Estate Commission.
• Who orders and pays: The party named in the contract or the party with a vested interest usually orders title, and your lender will require it. Payment for the owner’s and lender’s policies is negotiated. In many Texas transactions, the buyer purchases an owner’s policy, while the lender purchases the lender’s policy. Confirm what your contract states.
• Closing: The title company will only issue the final policy when the Schedule B, Part I requirements are satisfied. Exceptions in Part II stay on the policy unless removed or covered by endorsement.

South Austin exceptions to watch

South Austin and greater Travis County share some recurring title patterns. Here is what you will often see and what to do about it.

Recorded liens and mortgages

Outstanding mortgages, deeds of trust, tax liens, or judgments can appear. These must be paid and released at or before closing. Confirm payoff statements and that releases will be recorded.

Easements and rights-of-way

City utility, drainage, alley, and access easements are common on Austin lots. Easements typically remain as exceptions, which means the policy will not insure against losses tied to those rights. Review recorded easements, get a survey to map location, and confirm whether they affect a planned pool, addition, or fencing.

Restrictive covenants and HOA items

Covenants, conditions, and restrictions may set architectural rules, setbacks, or rental limitations. HOA assessments can also appear. Obtain HOA resale documents, confirm current assessments, and understand compliance obligations before you commit.

Taxes and special district assessments

Expect current-year property taxes and, in some cases, special district assessments like PIDs or MUDs. Taxes are liens that are usually paid at closing per contract prorations. To verify status, use the Travis Central Appraisal District for ownership and assessments, and the Travis County Tax Office for tax statements and payments.

Mineral reservations

In Texas, prior owners sometimes reserve oil, gas, or other minerals. Mineral interests can affect use and value. Ask the title company what mineral reservations are of record. Mineral exceptions are common in Travis County, and they often remain as policy exceptions unless addressed with specific endorsements.

Parties in possession and unrecorded matters

Standard exceptions address rights of parties in possession, such as tenants, which may not appear in public records. These are generally not insured unless handled by endorsement or resolved. Verify any leases, visit the property, and coordinate your survey review.

Survey and boundary exceptions

If there is no recent, acceptable survey, the policy may exclude coverage for encroachments and boundary conflicts. Order or update a survey and discuss a survey-related endorsement if boundary accuracy matters to your plans.

Chain-of-title gaps and probate

If there are missing deeds, heirship issues, or probate needs, the title company will list cure steps in Schedule B, Part I. These can include affidavits of heirship or corrective deeds. Ask for timelines early so you can decide whether to extend or renegotiate.

For local record checks, the Travis County Clerk maintains deed, easement, and judgment records, and the City of Austin is useful for municipal liens or permitting questions.

Buyer checklist before the option period ends

Use this checklist the moment you receive the commitment.

1. Confirm the order and note the commitment effective date.
2. Read Schedule A. Verify the seller’s name, legal description, and policy amount.
3. Review Schedule B, Part I. List every requirement the seller or title company must satisfy to close, such as payoffs, releases, affidavits, or probate documents. Ask whether the cures are realistic within your timeline.
4. Review Schedule B, Part II. Flag exceptions that impact use or value, such as mineral reservations, easements over planned improvements, restrictive covenants, or condo and POA liens. Separate temporary items from permanent ones.
5. Verify property taxes. Cross-check TCAD and the Travis County Tax Office. Request a tax certificate if needed.
6. Confirm HOA or POA status. Request resale and governing documents early.
7. Order or update a survey. Ask about survey endorsements if boundary precision matters.
8. Ask the title officer for plain-language explanations on unfamiliar items and which exceptions can be removed or insured.
9. If chain-of-title concerns appear, request a cure plan and timing. If the timeline is tight, consider extending your option period.
10. Discuss endorsements like survey, access, or zoning with your agent and the title rep, and ask about costs and benefits.

Negotiating cures without losing time

Use Schedule B, Part I to drive action: payoff liens, record releases, obtain affidavits, or correct deeds. If a cure needs more time, consider extending the option period, negotiating a credit, or closing with specific escrow instructions agreed by all parties. If a non-removable exception materially impacts value or intended use, consider a price adjustment or termination within your option period.

Endorsements and surveys in Austin

Endorsements can insure over certain risks that would otherwise remain excluded. A common example is a survey-related endorsement that offers protection against specified encroachments and boundary issues when the title company accepts your survey. You can also discuss access or zoning-related endorsements with the title officer. Confirm availability, cost, and what each endorsement actually covers. For Texas-specific guidance, consumer materials from the Texas Department of Insurance and Texas Land Title Association explain how endorsements work in general.

How your agent and title team help

Your agent should coordinate with the title officer the moment the commitment arrives. Together you should confirm what is curable, what is permanent, and how long the cures will take. Ask for written confirmation on who pays for endorsements and special handling, and identify any items that could delay closing. In South Austin’s fast-moving market, early communication is your best protection against unpleasant surprises.

Local resources for South Austin buyers

• Consumer title insurance basics and policy forms: Texas Department of Insurance
• Commitment structure and endorsements overview: American Land Title Association
• Standard Texas resale contract forms and guidance: Texas Real Estate Commission
• Deeds, easements, judgments, and recordings: Travis County Clerk
• Appraisals, ownership, and exemptions: Travis Central Appraisal District
• Tax statements and payments: Travis County Tax Office
• City permitting, code, and municipal liens: City of Austin
• Texas-focused title consumer resources: Texas Land Title Association

When you want a calm, thorough read of your commitment and a clear strategy before your option period expires, connect with a trusted advisor who works these files every week. For confidential, white-glove support tailored to South Austin and the Hill Country, reach out to MJ McFarland. Schedule a Confidential Consultation.

FAQs

What is a Texas title commitment and why does it matter?

• It is the title company’s promise to issue title insurance once listed requirements are satisfied, and it shows what will be excluded from coverage so you can address issues before closing.

How fast should I get my title commitment in Austin?

• Title commitments often arrive within a few business days after the contract is opened, so aim to review it early in your option period to allow time for cures or negotiations.

Which exceptions are common in South Austin?

• You will frequently see utility and drainage easements, restrictive covenants, mineral reservations, current-year taxes, and occasionally HOA or judgment items tied to the seller.

Do I need a new survey for my South Austin home?

• If there is no recent, acceptable survey, the policy may exclude boundary and encroachment coverage, so ordering or updating a survey is wise if you plan improvements or need boundary certainty.

Who pays for the owner’s and lender’s title policies in Texas?

• Payment is negotiable in the contract, though in many Texas transactions buyers purchase the owner’s policy and lenders obtain their own policy; always confirm your specific contract terms.