General

What does a title company do and who picks it?

Answered by Allen Markel, REALTOR®, Texas Premier Realty · Published September 26, 2026

Short answer

A Texas title company is a neutral party. It does not work for the buyer, the seller or either agent; it searches title, issues the title insurance, holds the earnest money, closes the sale and delivers what the contract says. Who picks it is negotiable when the offer is written. In Texas, typically whoever pays for the title policy chooses the title company, and the seller customarily pays. There are exceptions, and we handle those one at a time if they arise in your transaction. I recommend my clients pay it so they choose, because what matters is the escrow officer, not the name on the door. The premium is set by the state, so every company charges the same.

The TREC contract names an escrow agent, and in most transactions that is a title company. Under Paragraph 5A the buyer delivers the earnest money and option fee to the escrow agent within 3 days after the effective date. Paragraph 6A calls for an owner policy of title insurance issued by the named title company in the amount of the sales price, and Paragraph 6B requires the seller to furnish a title commitment within 20 days after the title company receives the contract, plus, at the buyer's expense, legible copies of the documents behind each exception.

At closing the title company collects the buyer's funds in good funds acceptable to the escrow agent (Paragraph 9B(2)), pays off the seller's liens, disburses proceeds, and files the deed with the county. Paragraph 18 says the escrow agent is not a party to the contract and is not liable for the parties' performance. So it is a neutral holder, not a lawyer for either side.

The Texas Department of Insurance says that although your agent, builder or lender may recommend a title company, you can choose any company you want. The TREC contract has a blank in Paragraph 6A for the title company's name and a checkbox for whether the owner's policy is at the seller's or the buyer's expense, so both are terms the parties fill in when the offer is written. In Texas, typically whoever pays for the title policy chooses the title company. There are exceptions, and we handle those one at a time if they arise in your transaction.

The premium itself is set by regulation. TDI states that all Texas companies charge the same rates for title insurance, though closing fees may vary between companies. An owner's policy protects you against pre-existing problems, such as unpaid taxes, fraud, or claims from unknown heirs, for as long as you own the property, per TDI. For a worked premium example, see the cost-to-sell question.

Customarily the seller pays for the policy, and agents often repeat the same choice on every offer out of habit. It does not have to be that way. It is negotiable, and it is worth deciding on purpose.

What I tell my clients

I recommend you pay for the title policy, whether you are buying or selling, so you get to choose the title company. It also keeps the offer simple to write. Customarily the seller pays, and a lot of agents repeat the same choice on every offer out of habit. In Texas, typically whoever pays for the title policy chooses the title company. There are exceptions, and we handle those one at a time if they arise in your transaction. Who picks the title company is negotiable when the offer is written.

Think of a restaurant. The same place can give you great service one day and poor service the next, because it is only as good as the person serving you. There are thousands of title companies and escrow officers, just as there are thousands of servers. Your biggest transaction is fulfilled by that company. It delivers everything the contract says that the buyer, the seller and both agents negotiated. You do not want to roll the dice on who you get.

So I care about the person, not the name on the door. I pick the escrow officer I trust to take care of my clients. I have worked with the same escrow officer for more than six years, she has more than thirty years in the business, and I will keep working with her wherever she goes.

A title company is a neutral party. It does not work for the buyer, the seller or either agent. It fulfills what the contract says.

Here is how that fits into writing the offer. I have my client pay for the title policy, and that gives us the opportunity to choose the title company that works in my client's favor. To offset that cost, I recommend that the other side of the transaction pay for the other negotiable costs in the contract: HOA transfer fees, the survey, the home warranty, and so on. It is not a perfect balance, but it is the balance I trust most, and it puts my client's interest first.

Common follow-up questions

Is title insurance the same price at every Texas title company?

The premium is. TDI states all Texas companies charge the same rates for title insurance, based on the sales price. Other closing fees can differ between companies, so compare those.

What is the title commitment?

It is the title company's promise to issue a policy subject to listed exceptions. Under Paragraph 6B the seller furnishes it within 20 days after the title company receives the contract, and you can object to items.

Can my agent make me use a certain title company?

No. TDI says your agent, builder or lender may recommend a title company but you can choose any company you want.

Sources

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What does a title company do and who picks it?

Short answer

Common follow-up questions

Sources

Talk it through with Allen

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