Thinking about a Lakeway home near Lake Travis or along a golf course and wondering what title insurance actually covers? You are not alone. Many out-of-state and move-up buyers want the lake lifestyle, yet worry about docks, shoreline rules, and old liens turning into surprises after closing. In this guide, you will learn how title insurance works in Texas, the Lakeway issues that matter, and the steps to take before you write an offer. Let’s dive in.

Texas title insurance basics

Title insurance protects you from covered losses caused by defects in title that exist as of the policy date. It can pay to defend your title and cover covered losses up to the policy limit, subject to policy terms, exclusions, and exceptions.

There are two policies to know. An owner’s policy protects your equity for as long as you own the property, often in the amount of the purchase price. A lender’s policy protects the lender’s lien in the amount of the loan and ends when the loan is paid off.

Premiums in Texas are a one-time fee paid at closing. Who pays is negotiable and depends on local custom and your contract terms. The cost is based on the property value or loan amount and any endorsements you choose.

Policies include exclusions and Schedule B exceptions for items not insured, such as recorded easements, covenants, and taxes not yet due. You can often add endorsements to expand protection for specific risks like survey matters, access, encroachments, and mechanics’ liens. If a covered issue arises, the insurer typically decides whether to settle or defend, and will pay covered losses up to the policy amount.

Lakeway title issues to watch

Shoreline, docks, and LCRA rules

Lake Travis is a managed reservoir. The Lower Colorado River Authority (LCRA) regulates shoreline uses, permits docks, and may hold operational easements. Your title commitment may note recorded LCRA instruments or shoreline encumbrances. Review whether your deed includes fee ownership to the waterline and verify any required LCRA permits or leases for docks and shoreline structures.

Boundary and survey near the waterline

Water levels can fluctuate, which can blur where the private boundary meets the managed water body. A standard search may not capture how the waterline impacts usable shore or dock placement. Order an ALTA/NSPS survey that shows the shoreline, docks, bulkheads, and setbacks, then consider a survey-related endorsement to strengthen protection.

Mineral rights and severed estates

In Texas, mineral rights may be severed from the surface estate. Mineral owners can have broad rights that may affect surface use. Ask the title company to identify any recorded reservations. Standard policies often except minerals. If you are concerned about surface impacts, seek legal guidance and discuss whether a relevant endorsement is available.

HOA and golf community covenants

Many Lakeway neighborhoods have recorded deed restrictions, architectural rules, and mandatory assessments. These typically appear as Schedule B exceptions. Review the governing documents, financials, and any pending enforcement. Some transactions may qualify for a restrictive covenant or HOA-related endorsement, but scope is limited and varies by company.

Special districts and tax assessments

Properties in Travis County may be inside special districts such as MUDs or emergency services districts. These entities levy taxes and assessments that can create liens. Confirm district status and any current or future assessments through the title commitment and county tax records.

Unreleased liens, judgments, and probate gaps

Old mortgages, judgment liens, mechanics’ liens, or unclear probate histories can cloud title. Title companies usually work to clear these before closing. Review Schedule B requirements and ensure there is a plan to resolve any open items or to provide appropriate endorsements.

Flood risk and insurance

Flood risk is separate from title. Title insurance does not cover flood damage. Some Lakeway shoreline properties are in FEMA special flood hazard areas, and lenders may require flood insurance. Obtain a flood determination, request any elevation certificates, and get quotes early.

Permits for docks and shoreline structures

Docks, boat ramps, riprap, and seawalls usually need permits from LCRA and sometimes the City of Lakeway. A permitted dock may still be subject to operational limits or future changes in lake management. Verify permits, leases, and any recorded easements tied to shoreline structures.

Read your title commitment like a pro

What Schedule B tells you

Your title commitment lists the items not insured and the requirements to issue the policy. Expect to see existing liens to be released, recorded easements, covenants, and needed affidavits. Ask the title officer to explain each exception in writing and how it will be cleared or addressed.

Survey and key endorsements

A current survey is essential in waterfront purchases. Ask about endorsements that are commonly useful in Lakeway:

• Survey or location endorsement for boundary lines and improvements shown on the survey.
• Access or rights-of-way endorsement for legal and physical access.
• Restrictive covenant endorsement for certain enforcement risks, subject to limits.
• Encroachment and boundary endorsements for neighbor or improvement overlaps.
• Mechanics’ lien endorsement if recent construction or remodeling occurred.

Availability and terms vary by company. Some endorsements require specific survey standards or additional underwriting.

Minerals review and legal guidance

Request a review of recorded mineral reservations and severances in the chain of title. If minerals are severed, disclose and evaluate surface-use implications. Title policies often except mineral interests. Consult an attorney for detailed advice on surface rights if needed.

HOA and assessment diligence

Obtain the HOA resale certificate, CCRs, and current assessment statements. Confirm whether unpaid amounts will be cleared at closing and whether any HOA-related endorsement is available for your situation.

LCRA and local checks

Confirm LCRA status for shoreline permits or leases. Check City of Lakeway permit records for docks and shoreline work. Review Travis County Clerk records for recorded easements to public entities that may affect the lot.

Timeline and who pays

Order the title commitment early during your option or inspection period. Complex histories, such as probate issues or mineral splits, may need more time. Payment for the owner’s policy is negotiable in Texas, and customs vary by area. Negotiate this in your offer.

Lakeway buyer checklist

• Order the title commitment as soon as your due diligence begins.
• Obtain an ALTA/NSPS survey showing shoreline improvements and all lot corners.
• Review all Schedule B exceptions and get written explanations for shoreline, LCRA, and easement items.
• Verify LCRA permits, leases, and transferability of any existing dock.
• Review HOA documents, budgets, and enforcement history; confirm any pending assessments.
• Confirm taxes and special districts through county records, including any bonds or assessments.
• Identify recorded mineral reservations and consult counsel if you have surface-use concerns.
• Obtain a flood zone determination and any elevation certificates; price flood insurance early.
• Discuss endorsements with the title company, including survey, access, encroachment, restrictive covenant, and mechanics’ lien options.
• Ask about the policy form, limits that match your purchase price, and the claims process.

Avoid common mistakes

• Skipping a current survey or relying on an old sketch that does not show the shoreline or dock.
• Assuming a visible dock is permitted, transferable, and free of restrictions.
• Ignoring Schedule B because items look routine. Small exceptions can have big effects.
• Overlooking mineral reservations and access rights that could impact surface use.
• Waiting until financing contingencies to order endorsements that require extra underwriting.

Work with a Lake Travis–savvy team

Waterfront and golf-community properties reward careful due diligence. The right plan gives you confidence, cleaner negotiations, and fewer surprises at closing. With deep experience in Lakeway and lake-adjacent transactions, we coordinate early with local title officers, surveyors, and relevant authorities so you can secure the endorsements you need and move forward with clarity.

If you are ready to buy in Lakeway, let’s talk about your goals, timing, and the title strategy that fits your property type. Schedule a Private Consultation with Mary Anne McMahon to get started.

FAQs

Does Texas title insurance cover dock removal on Lake Travis?

• No. Title insurance does not cover flood damage or routine regulatory actions. If LCRA requires dock removal due to noncompliance, that is typically not covered.

What is the difference between an owner’s and a lender’s policy in Texas?

• The owner’s policy protects your equity for as long as you own. The lender’s policy protects the lender’s lien and ends when the loan is paid off.

Do I need a new survey for a Lakeway waterfront home?

• Yes, a current ALTA/NSPS survey is strongly recommended to show shoreline, docks, improvements, and setbacks. It also helps qualify for survey-related endorsements.

Will title insurance cover neighbor encroachments in Lakeway?

• Not by default. Standard exceptions often exclude encroachments unless you add a survey or encroachment endorsement that meets underwriting requirements.

How do HOA assessments affect title in Lakeway communities?

• Recorded covenants and assessments typically appear as exceptions. Some endorsements may offer limited protection for certain assessment issues, subject to policy terms.

Who usually pays for the owner’s title policy in Texas?

• It is negotiable. Customs vary by area and transaction. Confirm local practice and negotiate in your offer.