Before you buy any property in Texas, make sure you know what you are getting. One of the most important steps is reviewing the title report. This report tells you who owns the land now, what claims or issues are tied to it, and what must be done before the sale is complete. Understanding this document helps you avoid problems like unpaid taxes, property disputes, or old debts. Buying real estate is a big investment, and it is worth taking time to check every detail. A careful title check can prevent unexpected expenses after the purchase.
In This Article:
Understanding the Title Commitment
Schedule A: The Basics of the Deal
Schedule A lists the bare essentials of the property transaction. This part tells you the name of the title company, the buyer and seller, and a brief legal description of the land. Always check that your name is spelled correctly, exactly as it should appear on the deed. Also, match the details with the sales contract to be sure nothing is off. A mismatch in details here can delay the closing.
This section might seem simple but do not skip it. Even one typo can lead to a problem later. If your name is not accurate, title transfer could be delayed or denied. Just like checking your receipt after shopping, confirm all details are right. Buyers often overlook Schedule A, assuming it is just routine; that is a mistake. A strong start here builds trust in the whole process.
Schedule B: What Is Not Covered
Schedule B describes the things that title insurance will not cover. This list often includes things like easements, zoning rules, or neighborhood restrictions. For instance, a utility company might have a right to run pipes under your land, and you cannot build over them. These might be harmless, but they could limit your use of the land. The catch is, many of these items cannot be removed.
Reading Schedule B can take time, but it is worth every minute. You should understand how each exception might affect your plans. If you want to build a fence or put up a shed, some rules here might block that. Ignoring Schedule B can lead to disappointment and frustration. So treat this part seriously, and ask questions about anything you do not understand. Even a small easement could make a big difference.
Schedule C: What Must Be Fixed Before Closing
Schedule C lists the issues that must be cleared before the title company issues insurance. These items may include unpaid taxes, liens from a contractor, or missing paperwork. In other words, these are red flags. These problems do not always belong to the current seller—they could be leftovers from several owners ago. But unless the seller or someone else clears them, they can stop your deal.
If Schedule C contains liens, it is your job to make sure they are removed before closing. Work with your real estate team to confirm that all listed items get resolved. Remember, the title must be clean before you can own the land without risk. A clean title also makes it easier to sell or finance later. Addressing these things now prevents future conflict and cost.
Common Red Flags Found in Title Reports
Unreleased Mortgages and Liens
One of the biggest surprises buyers face is finding an old mortgage or lien still attached to the property. Even if the previous owner paid off the debt, it may still show on the title. This usually happens when the proper paperwork was never filed to release the lien. You could end up paying someone else’s old debt if you do not act carefully. Verification matters here.
Always follow up on each listed lien or mortgage. Get written proof that it has been paid and officially released. Ask questions if the amount or creditor seems odd. Title issues like this are more common than most think. A texas title report attorney review can help spot release errors early. If left alone, these small issues can turn into big financial problems later.
Old Restrictions and Easements
Older properties may come with rules and rights made decades ago. These could limit the way you use the land. For example, you may discover that a past owner gave a neighbor the right to use a driveway on your land. You cannot stop that use now. You would be surprised how long these things stay attached to land in Texas. They never just “go away.”
Double-check all listed easements. Some will be fine, while others may restrict your building plans. Restrictions might even control the type of home you build or run on the site. While annoying, they are legal and binding. Real estate law makes it hard to fight valid easements. Understanding what you can and cannot change helps set realistic plans before you close.
Survey Overlaps and Encroachments
This is a tricky but serious issue. Encroachments happen when a structure stands over a boundary line. A fence, garage, or even a driveway might sit partly on a neighbor’s land. That is not just awkward—it could lead to a lawsuit. Property line problems are common sources of conflict, especially in cities and older subdivisions. Fixing it after closing is costly.
A recent survey helps spot overlaps. Do not rely on old maps or verbal promises from sellers. If two adjacent properties both claim the same strip of land, that is a title issue. Resolving such disputes could take months of back-and-forth or court decisions. Land disputes cost time, money, and energy. A title report combined with a current survey helps clear this early.
How Legal Review Can Protect You From Mistakes
What Title Insurance Will—and Will Not—Cover
Title insurance helps protect you from hidden issues. These might include errors in public records, unknown heirs claiming the land, or forgery in past sales. But this insurance does not help with problems that are already listed in the title report. If you know about it and still buy, the insurance will not cover it. That is why reading the full report is so important.
Insurance gives peace of mind, but only to a point. It is not a fix-all solution. You must understand the risks it does not handle, like certain boundary problems or known liens. That is where expert help often comes in handy. A houston real estate lawyer help can explain what each term means in simple words. That extra understanding could help you make smarter choices at closing.
Catching Errors Before They Become Lawsuits
Sometimes the problem is not legal; it is just human error. A wrong name, misnumbered lot, or incomplete document can be all it takes to stop your deal. These mistakes are common in the real estate world. Small errors in spatial descriptions or contract timing can lead to big setbacks. Catch these before they cost money or delay your move.
You do not need to be a legal expert to spot problems early. If something looks off—like the wrong description or spelling—ask for clarification. Do not assume someone else caught it. Even experienced sellers or brokers miss these items. Red-flag items should be handled before closing. That is one big reason why property title accuracy matters from start to finish.
Important Steps for Sellers Before Listing Property
Review the Title Report in Advance
If you are thinking about selling your land or home, checking the title report first can save big headaches. Look for any liens, easements, or past restrictions that might worry a buyer. Handle these before you list the property. Buyers tend to walk away from listings with title issues. Fixing problems early can protect your reputation and timeline.
Many sellers forget they can review the title report before anyone makes an offer. Doing this shows good planning and honesty. You can also spot errors or clean up anything confusing in the property title. This makes closing smoother and faster. The fewer surprises buyers find, the quicker you can get to the finish line.
Disclose Any Known Problems
Texas law expects all sellers to be upfront about any title issues. This includes known liens, boundary problems, easements, or mineral rights agreements. Speaking of that, if there are special oil or gas rules tied to the land, those should be made public, too. Clear property deals are built on trust and facts. Open sharing builds strong deals.
If you fail to disclose, the buyer could walk or even sue later. That creates stress and delays for everyone. Even if you think the issue is small, talk about it. Texas real estate law protects buyers more than sellers when problems are hidden. Remember, being upfront often saves you long-term trouble much more than keeping quiet ever will.
Clean Up Before It Becomes a Drag
Think of title cleanup like spring cleaning. The property may look great on the outside, but if the paperwork is messy, the deal could fall apart. Whether it is an unreleased mortgage, an old restriction, or unrecorded mineral activity, now is the time to take action. Smart sellers fix issues before showing the land or listing it for sale.
This step helps your texas attorney focus on moving the deal forward instead of handling unexpected land disputes. It also gives buyers more reason to move ahead quickly. The longer title problems stay unsolved, the harder they usually get to resolve. A clear path makes for a quick and trusted closing process for all parties involved.
Final Thoughts: Protecting Your Investment With Good Habits
Buying or selling land in Texas takes more than signing papers. You must understand the title report, especially if issues like easements, liens, or mineral rights are involved. A good real estate lawyer for land titles knows how these affect your deal. Catching problems early in the title process can prevent major damage later. Title issues are often the root cause of delayed closings, lawsuits, or lost money.
Whether you are investing in a home, farm, or oil-rich tract, knowledge is power. Reading your title report in detail is not a step you skip—it is one you prioritize. When in doubt, you can bring in legal help for mineral rights texas legal advice to explain terms and risks. Make title review a habit, not a one-time task. It keeps your investment strong.
It also helps to revisit these ideas once or twice even after purchasing. You might spot patterns or rules that affect resale or development later. Title reports tell a story—and the best deals are those where both sides know how the story ends. The best way to keep your real estate safe is by staying informed and careful with the details.
If you are facing title issues, property boundary problems, or unclear mineral rights tied to your Texas land, it helps to have someone who understands real estate law inside and out. The attorneys at Daughtrey Law Firm have years of experience working with land titles, oil rights, and complex title reports in the state.
