Buying property in Austin is an exciting step, whether purchasing a home, investing in commercial real estate, or developing land. But before you sign the final paperwork, ensuring the property’s title is clean is critical. Title issues can delay closings, create legal headaches, or even lead to costly lawsuits. That’s why title insurance and a thorough title review by an Austin real estate lawyer are essential to any real estate transaction.

In this guide, we’ll walk through what title issues are, how title insurance works, and why working with a local real estate attorney can save you from major problems down the road.

What Is a Title?

The title to a piece of property is the legal record of ownership. It shows who has the right to use and sell the property and includes essential legal details such as easements, liens, and past transfers. A “clean” or “clear” title means the property can be sold without legal issues or conflicting claims.

Before a real estate closing, the buyer (or their title company) orders a title search. This search reviews public records to ensure no problems with the property’s title.

Common Title Issues in Austin

Austin is one of the fastest-growing cities in the U.S., which means a lot of real estate activity—and, unfortunately, a higher risk of title complications. Some common title problems include:

1. Liens

A lien is a legal claim against the property for unpaid debts. This could be from unpaid property taxes, contractor bills, HOA dues, or a past mortgage that wasn’t properly released.

2. Boundary or Survey Disputes

In some cases, neighboring properties may have unclear or overlapping boundaries. Without a current survey, you could buy land someone else partially uses or claims.

3. Missing Heirs or Probate Issues

If a past owner died and the estate wasn’t properly probated, long-lost heirs may later come forward and claim ownership rights.

4. Errors in Public Records

Clerical errors in deeds, misfiled paperwork, or even name misspellings can cloud the title and delay closing until corrected.

5. Forged or Fraudulent Documents

In rare but serious cases, previous deeds may have been forged, or a person may have sold property they didn’t legally own. These issues can be difficult to detect without professional help, so hiring an Austin real estate lawyer to review title documents before closing is smart.

What Is Title Insurance?

Title insurance protects buyers and lenders from financial losses related to title defects. It’s different from other types of insurance because it covers past events, not future risks.

There are two types of title insurance:

1. Owner’s Title Insurance

This protects the buyer against problems with the title. If an issue comes up after the sale—such as an undiscovered lien or a missing heir—you’re covered up to the policy limit.

2. Lender’s Title Insurance

This protects the mortgage lender. It ensures they have a valid lien on the property and will be repaid if a title issue arises.

In most Austin real estate deals, the buyer pays for the lender’s policy (if taking out a mortgage) and may also purchase an owner’s policy for added protection.

Is Title Insurance Required in Austin?

Texas law does not require title insurance for buyers, but lenders almost always require it for financed purchases. Even if you’re paying cash, buying an owner’s policy is highly recommended.

The Texas Department of Insurance (TDI) regulates title insurance rates statewide, so pricing is consistent no matter what title company you use. However, your Austin real estate lawyer can help you compare endorsements and policy terms.

How an Austin Real Estate Lawyer Can Help

While title companies are skilled at conducting title searches and issuing insurance, they don’t represent your legal interests. Their job is to issue a policy, not to explain legal risks, review contracts, or fix issues.

That’s where an Austin real estate lawyer becomes essential. Here’s what a lawyer can do for you:

Review the Title Commitment: Before closing, the title company issues a commitment outlining known defects and exceptions. Your attorney can explain what these mean and negotiate changes or remedies.

Resolve Liens or Claims: If there’s a lien, easement, or boundary dispute, your lawyer can work to clear the issue or negotiate with the other party.

Review Deeds and Transfer Documents: Mistakes in the deed or improper wording can affect your ownership rights. Your lawyer ensures everything is legally sound.

Provide Legal Guidance During the Transaction: A lawyer will ensure the purchase contract aligns with your interests and protects you if issues arise.

In short, while title insurance helps after a problem is discovered, your attorney helps prevent problems before they occur.

Final Thoughts

Title issues can seem minor until they delay a closing or trigger a lawsuit years later. Whether buying a home, a rental property, or a commercial space in Austin, don’t overlook the importance of a clean title and proper legal review.

An Austin real estate lawyer will help you understand what’s in the title commitment, protect your ownership rights, review contract language, and assist with clearing any red flags before closing day.

At Baker Law Group, we help clients across Austin confidently handle real estate transactions. If you’re buying or selling property and want to ensure the title is clear, contact our office today for experienced legal guidance.