Understanding Title and Deed Issues: No Surprises at Closing

Land in Texas often has a long history – and with that can come a tangle of title issues if not handled. Don’t assume the title is clean just because the seller “has owned it for 30 years.” Hidden problems can lurk. The good news: title companies and careful review will catch most of these, but you need to know what to look for and what to demand.

Get Title Insurance: Always, always get a title insurance policy when you buy. It’s a one-time fee (paid at closing) that protects you if someone later claims ownership or if a lien pops up that wasn’t cleared. The title company will do a title search before issuing it – that’s when issues surface.

Common Title Issues in Rural Land:

• Boundary Overlaps/Disputes: Maybe an old fence line doesn’t match the deed. Sometimes neighbors have an informal agreement that isn’t recorded. If your survey shows an issue, that becomes a title matter to resolve (possibly by a boundary line agreement or deed swap).
• Heirship Gaps: If the land’s been in a family, perhaps a past generation died without proper probate or transfer. You might need affidavits of heirship signed by relatives to clear that. Title companies will list such requirements.
• Liens: Unpaid property taxes create a lien automatically. Also, if a past owner had a loan and mortgage, ensure there’s a recorded release. Occasionally an old deed of trust shows up from 1975 with no release; you’ll need the title company to sort that (maybe track down the lender or use indemnity if lender is defunct). Abstracts of judgment (from lawsuits) against any owner in chain must be cleared if they attached to property. UCC liens if equipment was financed. All these should be cleared by seller at or before closing.
• Mineral Reservations and Leases: Expect to see prior deeds reserving minerals. That’s normal; just understand what’s reserved. More critically, active oil/gas leases or pipeline easements will appear. Know their impact. If an oil lease is active, you might want a surface use agreement or at least awareness that drilling could occur. If a pipeline easement exists, you can’t stop a pipeline company from using that strip. Title commitment will show these under Schedule B exceptions. Read them.
• Easements: Many rural properties have granted easements: utility lines, access for others, sometimes old easements like grazing rights or irrigation canals. Check if any run through the property that you didn’t know about. Occasionally, there are “floating” easements (no fixed location given, often old ones for ingress/egress). Those are concerning; you’d want them clarified or released because they leave uncertainty.
• Deed Restrictions: We discussed in land use – if any, they’ll be on title. If you find them unacceptable, you could terminate in contingency period.
• Survey Exceptions: Title policies typically exclude “shortages in area” unless you give them a survey. Provide the new survey to have that coverage. Also, request the T-19 endorsement in Texas which covers certain survey matters (some title companies include if survey provided). It’s technical, but it’s extra protection.

Curative Work: If title search finds issues, the seller (with title company help) should undertake curative measures. This could delay closing. For example, if a prior owner died and one heir never signed off, they may need to locate that heir for a quitclaim deed. Or if a lien is on record, they need payoff and release. Be patient but set reasonable deadlines and insist these be done or insured over. Title companies can sometimes use an “insured closing letter” or indemnity to close with an unresolved issue if they deem risk low (e.g., they can’t find an heir, but will insure against any claim by them). You have to be comfortable with that.

Ag Leases or Other Unrecorded Interests: Ask the seller in the contract to disclose any leases (hunting lease, grazing lease, etc.) even if not recorded. Many farm leases are handshake deals but they still survive closing if the buyer doesn’t terminate them. Typically, if not disclosed, you take free of them, but best to flush it out to avoid chasing off a ranch hand who thought he had the grazing for the year. You may need a lease termination letter at closing.

Legal Access on Title: Make sure the title commitment shows recorded access easements if the land isn’t on a public road. If it doesn’t, alarm bells – you have time to address it as a title defect (lack of access is insurable issue). Don’t close hoping it’s okay; get an easement recorded.

Partition or Divorce History: If sellers are a couple divorcing or multiple siblings, ensure all required parties sign. If one co-owner is missing, that’s a major title flaw. Title company will catch that usually.

Ranch Name or Sign: Funny one, but if the ranch has a name sign, you might expect to get it. However, some ranch names are actually registered business entities. Not a title issue per se, but ask if the ranch name is included or protected. Usually not an issue unless you plan to keep the same name for some reason and it’s trademarked or LLC. Review the Deed Before Signing: At closing, you’ll sign the deed (as buyer you actually usually just acknowledge it). Verify it conveys what it should (fee simple, including any water rights, etc., and subject only to the exceptions you agreed to). Ensure any special provisions – like seller reserving mineral rights or life estate or whatever – are exactly as negotiated. Once it’s recorded, that’s what you live with.

After Closing – File for Your Exemptions and Records: Once you own it, file deed with county (title co does that), then go to county appraisal district to make sure ag exemption and any wildlife plans are carried over to your name so you don’t accidentally lose them due to paperwork.

Don’t treat title as an afterthought. Be proactive and thorough in reviewing title commitments and surveys with your agent or attorney. Ask questions about anything you don’t understand. It’s much easier to clear up title issues before you pay, than to fix them after you own (when some motivation is lost from seller’s side). With a clean title in hand, you can fully enjoy your land with confidence that no one will come knocking claiming your back pasture or a slice of your mineral rights. Secure that title, then it’s truly your land.