Quick Answer
The Texas escrow and closing process involves opening title, performing a title search, preparing a title commitment, coordinating lender requirements, scheduling signing, funding, recording, and disbursing funds. In Texas, title companies typically handle both title and escrow services, and attorneys may be involved depending on the transaction.
If you are buying or selling real estate in Texas, understanding the escrow and closing process helps you know what to expect and when. Here is a step-by-step guide to how a typical Texas closing works.
The Title Process in Texas
Once a purchase contract is signed, the title company opens a file and begins researching the property. The title search examines public records dating back decades to trace ownership and identify any liens, judgments, or other encumbrances. For a complete explanation, read What Is a Title Search?
The Title Commitment
The title company prepares a title commitment, which is its promise to issue a title insurance policy once certain requirements are satisfied. Schedule A shows the proposed insured, policy amount, and legal description. Schedule B lists requirements and exceptions. For a deeper understanding, explore our series on Understanding Your Title Commitment.
Texas Escrow Services
In Texas, most title companies also provide escrow services. The escrow officer coordinates the financial side of the transaction, including holding earnest money, collecting closing funds, requesting payoff statements, and ultimately disbursing funds after recording. Read more about what an escrow officer does.
The Closing
Texas closings typically involve signing documents at the title company's office or with a mobile notary. The buyer signs loan documents, the deed, and closing statements. The seller signs the deed and other transfer documents. Learn about what happens on closing day.
Funding and Recording
After signing, loan funds are wired, the transaction is funded, and documents are recorded with the county clerk. Once recording is confirmed, funds are disbursed to the seller, lien holders are paid, and the transaction is complete. For more on this timeline, read when the seller gets their money.
Educational Information
This article provides general educational information about Texas escrow and closing processes. Laws, regulations, and closing practices vary by jurisdiction. This content does not constitute legal advice. Consult qualified professionals for advice specific to your transaction.
Know Before You Buy
Before you buy, before you invest, know more about the property. 1st Option Title offers free Property DNA Reports that provide comprehensive property research information. A Property DNA Report is not title insurance or a title search. It is an informational research report to help you make informed decisions early in the process.
FAQs
Does Texas require an attorney at closing?
Texas does not require an attorney to conduct real estate closings in all cases, but certain aspects of the transaction may require legal involvement. Title companies can handle the closing process in most residential transactions. Always consult a qualified Texas real estate attorney for legal advice.
How long does a typical Texas closing take?
A financed residential purchase in Texas typically takes 30 to 45 days from contract to closing. Cash transactions can close faster, sometimes in as little as one to two weeks depending on the circumstances.
Can I close remotely on a Texas property?
Yes. Texas permits remote online notarization (RON) for real estate transactions, and many title companies offer remote closing options. Read about what remote online notarization is for more information.