In real estate, the word "Title" refers to ownership. Ownership is passed from one person (or entity, such as a corporation) to an- other by means of a written grant, most often called a Deed. In Texas, real estate transactions must be in writing, and no oral or verbal grant of ownership interest in real estate is valid. Likewise, an oral or verbal contract regarding real estate is not valid. So that the public can know who the owners of real property are, each county in Texas maintains real property records. Using these records, it is possible in most cases to trace the "chain of title" all the way back to its ownership by the sovereign state.

A title policy of insurance is a guaranty by the insuring company, the title company, to defend the insured (the owner of the property and/or the mortgage lender), subject to certain exceptions, against legal claims made against the insured's title to the covered property. A title policy of insurance is effective for as long as the insured owner (or his/her heirs or specific types of assignees) continues to own the property. There is always a risk that the record chain of title may not properly reflect the actual title to a given property. Owners and lenders want to assign that risk to title insurance companies. Title Insurance companies are licensed by the Texas Board of Insurance. Texas is widely considered to have the most highly regulated title insurance industry in the country.

Closing refers to the actual signing of the granting documentation (i.e., the Deed) and the exchange of consideration (usually the payment of money) necessary to affect or carry out a contract for the sale of real property. We refer to "closing the transaction," “closing the deal,” or “closing the contract.” Many times the Buyer is financing all or a portion of the purchase, so the Closing also includes the signing by the Buyer of finance-related documentation (i.e., the Deed of Trust, the Note, etc.).

Escrow Services are a means by which parties to a real estate transaction exchange consideration according to the terms of the contract. In the context of the residential real estate contract, Escrow Services in Texas are most often provided by title companies. Title companies maintain special bank accounts called Escrow Accounts. They receive money into the account and hold it until contractual conditions have been satisfied (the grantor/Seller has signed a Deed and the grantee/Buyer has signed the finance documents) for funds to be disbursed. Individuals are licensed by the Texas Board of Insurance as Escrow Officers. Escrow Officers are often also called Closers in the title industry.