When it comes to buying or selling property in Texas, few things can disrupt a closing faster than a title issue. From old liens to missing releases or undisclosed heirs, even small problems can delay or derail a transaction. Working with a trusted and experienced title company like Texas Country Title can make all the difference in protecting your property rights and ensuring a smooth transfer.
This guide highlights the most common title issues in Texas, explains how they occur, and outlines effective solutions—so you can move forward with confidence.
Understanding What Title Means
The “title” is your legal ownership interest in a property. A title search reviews public records to verify ownership and uncover potential claims, liens, or errors. Once verified, title insurance provides financial protection against future defects or disputes.
In Texas, the Texas Department of Insurance (TDI) regulates title companies, establishing standardized policies and endorsements across the state. This regulation ensures consistency in how title searches and cures are handled statewide, but each county still has its own nuances. That’s why partnering with a title company familiar with local laws and recording practices—like Texas Country Title—is so important.
Common Title Issues in Texas
Below are the most frequent title problems property owners encounter in Texas and how to resolve them effectively.
1. Unreleased Deed of Trust
The issue: A mortgage that was paid off but never released from county records can cloud ownership.
Solution: Under Texas Property Code § 12.017, a title company can file an Affidavit as Release of Lien if the lender fails to do so. This affidavit clears the lien from the record once payment is verified.
2. Property Tax Liens
The issue: In Texas, property taxes automatically become a lien on January 1 each year. Any unpaid balance can block closing or create post-sale disputes.
Solution: Before transferring ownership, all outstanding taxes must be paid and receipts verified with the local tax office. The title company confirms payment and obtains official clearance.
3. Mechanic’s and Materialmen’s Liens
The issue: Contractors or suppliers may file liens if unpaid for home improvement or construction work.
Solution: These liens must be satisfied, bonded around, or removed through legal means before closing. Title professionals check for active liens and coordinate proper releases under Texas Property Code Chapter 53.
4. Judgment Liens
The issue: When a creditor files an abstract of judgment, it attaches to the debtor’s real property for up to 10 years.
Solution: The lien must be paid or released before sale. If it’s a homestead property, exemptions may apply—but documentation must be filed to prove it.
5. HOA or Condominium Liens
The issue: Unpaid homeowner or condo association dues can result in liens or even foreclosure.
Solution: Obtain a resale or estoppel certificate from the association to confirm all fees are current. The title company ensures any delinquent balances are paid before the transfer.
6. Boundary or Easement Disputes
The issue: Old surveys, fence encroachments, or unrecorded easements can cause ownership conflicts.
Solution: Texas requires the T-47 Residential Real Property Affidavit if relying on an existing survey. If boundaries have changed or are unclear, ordering a new survey ensures proper legal description.
7. Severed Mineral Rights
The issue: Texas allows separation of mineral and surface rights. If minerals were previously reserved or leased, new owners may face unexpected limitations.
Solution: Review previous deeds for mineral reservations. Title companies can add endorsements like T-19.1 to clarify coverage, but mineral estates are often excluded from title insurance.
8. Heirship and Probate Issues
The issue: When a prior owner dies without a will or probate, determining rightful ownership can be complex.
Solution: A title company may require a Probate Order or Affidavit of Heirship to confirm ownership. Texas also recognizes Transfer on Death Deeds (TODDs), which simplify inheritance but still pass property subject to existing liens.
9. Homestead and Spousal Joinder
The issue: Texas homestead laws require both spouses to sign property conveyances or mortgages, even if only one spouse is on the title.
Solution: Title companies verify marital status and ensure both spouses execute the necessary documents to make the transaction valid.
10. Errors in Public Records
The issue: Misspelled names, incorrect legal descriptions, or missing signatures can invalidate recorded documents.
Solution: Texas law provides for correction instruments under Sections 5.028 and 5.029 of the Property Code. These allow for non-material and material corrections when recorded properly.
11. Forged or Fraudulent Deeds
The issue: Deed fraud—where someone forges ownership documents and records them with the county—has become a growing concern in Texas.
Solution: Homeowners can enroll in local Property Fraud Alert Systems offered by many Texas counties. If a forgery occurs, a quiet title action and title insurance claim may be necessary.
12. Hidden or Undiscovered Liens
The issue: Even the most thorough title search may miss hidden liens or claims.
Solution: This is where owner’s title insurance provides peace of mind—it covers many defects that are not found during the initial search. Learn more about what title insurance protects against here.
Why Working With a Texas Title Expert Matters
Every Texas county operates differently—recording requirements, tax offices, and lien searches all vary. Having a local title company like Texas Country Title, which serves Milam, Lee, Bastrop, Burleson, Colorado, Falls, Fayette, and Washington Counties, ensures that these nuances are handled correctly and efficiently.
Texas Country Title operates as a fully automated sovereignty title plant licensed across Central Texas. Their local expertise helps uncover county-specific issues faster, preventing costly delays at closing.
Preventing Future Title Problems
To minimize title risks:
- Order title early in the buying or selling process.
- Keep payoff records for all prior loans or liens.
- Use proper affidavits when relying on old surveys or inherited property.
- Monitor property records for fraudulent filings through your county alert system.
- Review title commitments carefully and ask questions about endorsements and exceptions.
For buyers preparing to purchase property, Texas Country Title offers helpful guidance and recommendations in their tips for buyers.
Clear Title, Confident Closing
Texas real estate transactions succeed when title issues are discovered early and resolved the right way. With the proper documentation, legal compliance, and protection through title insurance, you can safeguard your investment from unexpected ownership disputes.
Whether you’re buying, selling, or refinancing in Central Texas, Texas Country Title provides the local knowledge, accuracy, and personalized service you need for a smooth closing.
Contact Texas Country Title today to schedule a consultation or request a title review. Our experienced team will identify potential concerns early, explain your coverage options, and ensure your closing is protected from start to finish.
Call (254) 605-0140 or visit our contact page to get started.
Disclaimer: This blog post is intended for informational purposes only and does not constitute real estate, financial, or legal advice. Always consult with a qualified title services provider or real estate professional for advice tailored to your specific situation.