Choosing a title company in Dallas: who gets to pick and what to ask before you do

Yes, you can choose, and the choice happens at the contract

In Texas the title company is named in the purchase contract, and either side can propose one; the Texas Department of Insurance says you do not have to use a company chosen by your real estate agent, builder or lender. Because title premiums are set by the state and identical everywhere, choose on service: a named escrow officer you can reach, experience with the kind of problem your file might have, and clear procedures for funds and signing. Make the decision before the contract is signed, because changing it afterward takes both parties' agreement.

We at Capital Title get asked this question by buyers, sellers and agents all over Dallas, and I understand why it feels murky. Most people choose a title company once or twice in their lives, and by the time they think about it, someone has already filled in the blank. This guide explains how the choice works and how to make it well.

Why the premium should not be your deciding factor

TDI regulates title insurance rates, and its consumer guidance states that all Texas companies charge the same rates for title insurance. The policy language is also standardized, so an owner's policy from one licensed company reads the same as one from another. If someone offers you a discount on the premium itself, that is not a bargain; it is a reason to ask more questions.

It also helps to know what the premium pays for. The TDI FAQ explains that the premium covers the search, the examination and the closing, and that you pay it once, at closing. In other words, the same fixed price buys you the people who read the records, decide what must be cleared and run the closing table. The quality of those people is the variable, and it is the one worth shopping.

Escrow fees and some closing charges can differ, and TDI suggests reviewing them. They are worth comparing, but they are usually a small part of the statement, and a closer who catches a problem early is worth far more than a modest fee difference. My guide to what drives title and closing costs in Texas breaks down which lines vary and which do not.

What really separates one title company from another

If the product is the same, the difference is in how the file is handled. These are the things I would look at if I were choosing for my own family.

Communication belongs on this list too. Ask how you will hear about progress and how quickly calls are returned. Capital Title, for example, gives residential customers online access to their transaction around the clock, with updates at each step of the closing, so buyers and sellers are not left guessing between calls. Whatever company you choose, you should never have to wonder whether anyone is working on your file.

• A named escrow officer who will carry your file from opening to funding, with a direct phone number
• How quickly the title commitment goes out and who explains it to you
• Experience clearing the problems that actually stall closings: old liens, estates, divorces, survey issues
• Wire procedures that never change by email and that someone will explain to you on the phone
• Flexibility on signing: separate appointments, mobile notaries, signing at another office
• The ability to handle more than one kind of transaction, from refinances to commercial purchases

Questions to ask before you write a company into the contract

Call the office and ask these directly. A good escrow officer will answer without hesitation, and the way they answer tells you how the next month will feel.

Listen for specifics. An answer like we handle that all the time tells you less than a short description of the last estate file the office cleared and what it took. You are not testing anyone's knowledge of the law; you are finding out whether the person on the other end has done this before and will tell you plainly when something is wrong.

• Who will be my escrow officer, and how do I reach that person directly?
• How do you handle a seller who inherited the property or went through a divorce?
• What is your process for verifying wiring instructions?
• Can the buyer and seller sign on different days or in different places?
• Can you prepare an estimate of my closing costs from the contract?
• Is the title agent licensed by the Texas Department of Insurance?

Warning signs worth taking seriously

Some signals are worth more than any brochure. If you see these, slow down and ask more questions before you commit.

None of these alone proves a company is a bad choice, but together they predict the kind of month you will have. A good escrow officer is happy to explain how they work, because the explanation saves them calls later. If the answers you get are vague now, they will not get clearer the week before closing, when everyone is busy and the deadlines are real.

• An offer to discount or rebate the title premium, which is set by the state
• No single person responsible for your file, only a general inbox
• Wiring instructions sent by email with no offer to confirm by phone
• Vague answers about how estate, divorce or lien problems get cleared
• Pressure to use a particular company as a condition of the sale

When your agent, builder or lender has a favorite

Agents and lenders recommend title companies for good reasons: they have seen which offices return calls, which ones clear problems and which ones close on time. A recommendation from an agent who closes regularly is often the best information you can get, and I would take it seriously.

What a recommendation cannot be is a requirement. The TDI FAQ notes that federal law, Section 9 of the Real Estate Settlement Procedures Act, bars a seller from requiring a buyer to use a particular title company as a condition of the sale, and complaints about that go to the Consumer Financial Protection Bureau. If you feel pushed rather than advised, ask why, and remember you can verify any title agent's license through TDI.

In practice, one side often proposes the title company and the other accepts it as part of the negotiation. That is normal, not a trick. If you care about the choice, raise it before you sign, and talk to your agent or a real estate attorney if there is a disagreement.

Match the company to the deal you actually have

A straightforward purchase with a conventional loan can be closed well by many offices. The choice matters more when your file is not straightforward. If the seller inherited the house, ask how the company handles heirship and probate requirements; my guide on selling an inherited house in Texas explains what those requirements usually look like. If you are buying commercial property, ask whether the company has a commercial group and underwriting support. Capital Title, for example, has a National Commercial Operations group for larger and multi-site deals, while the client keeps a local contact.

Refinances, reverse mortgages and sales of bank-owned or foreclosed homes each have their own paperwork. Capital Title closes all of them, and for reverse mortgages it uses mobile notaries who close where the borrower is comfortable. If someone in the transaction lives in another city, a company with offices across the state can help; Capital Title describes itself as having more than 100 branch offices in Texas, with its headquarters in Plano.

For agents, lenders and investors who close often, the question shifts from one file to a relationship. You want the same contact every time, someone who knows how you work and which of your clients need extra explanation.

Do not let the choice distract from the money

Whichever company you choose, the most expensive mistake in a closing has nothing to do with the premium. It is wiring your down payment or proceeds to a criminal who has copied a real email thread. Ask every title company you consider how they protect against it, and read my guide on how to avoid wire fraud when sending closing funds before you send a dollar.

The second most expensive mistake is choosing late. A company named in the contract on day one has the full month to find and clear problems. A company swapped in halfway through starts over, and your closing date does not move to accommodate it.

If you are a seller, the same thinking applies in reverse. Proposing a title company you trust in your counteroffer is a reasonable request, and buyers rarely object when the premium is the same everywhere. Just make the request early, and be ready to explain why.

Naming Capital Title in your contract

If you would like our Park Cities office at Preston and Lovers in Dallas to handle your closing, ask your agent to write Capital Title of Texas into the title company blank of the contract and send us the executed copy with the earnest money. We open the file, confirm receipt of the funds and introduce your escrow officer, who becomes your single point of contact through funding.

Agents, lenders and investors who close regularly can set up a standing relationship with our office, so each new file lands with the same contact who already knows how you like to work. Business owners buying or selling commercial property get the same local contact, with our National Commercial Operations group brought in when the deal calls for it.

If you are still deciding, call and ask the questions above; we are open weekdays from 8:30 to 5. And if you want to see what happens once the file opens, my guide to what the title company does for the next 30 days walks through the search, the commitment and the problems that most often delay a closing.

Questions people ask me