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Let’s say you’ve found the perfect spot in Dallas to buy or build a self-storage facility. It checks all the boxes. Great location. Plenty of space. Maybe even room to expand.

But before you hand over a check or sign the dotted line, there’s one less obvious thing you need to handle: title insurance.

Some investors treat title insurance like a formality. Just paperwork. But that’s a mistake—especially with commercial property like self-storage. In Texas, and particularly in fast-growing areas like Dallas, hidden problems with a property’s title can cost you real money. Sometimes millions.

So how do you get title insurance right?

That’s what this essay is about. I’ll walk through what title insurance is, why it matters more than you think, and how to avoid the common traps—especially for self-storage operators in Dallas.

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What Is Title Insurance and Why Should You Care?

Title insurance protects you from past problems that affect the ownership of your property.

These problems—called title defects—can include:

• Unpaid property taxes
• Old liens from contractors or lawsuits
• Disputes over boundaries or fences
• Utility easements you didn’t know about
• Even missing heirs or forged documents

If a problem pops up after closing, and you don’t have title insurance? You’re on your own. That’s what makes it different from regular insurance. Title insurance covers what happened before you bought the property, not after.

And it only takes one mistake to wreck a deal.

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Why Self Storage Facilities Are Especially Vulnerable

Self-storage deals are different from residential homes or even small office buildings.

You’re usually working with larger parcels. Often on the edge of town, where land is cheaper. That increases the odds that something got missed—an old right of way, or a lien that was never paid off.

You may be converting an existing structure. Or assembling parcels from different owners. Or buying from a seller who didn’t keep perfect records. The more complex the deal, the more risk you face.

And in Dallas, where the market moves fast, deals sometimes get rushed. Corners get cut.

That’s when title problems slip through.

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Real-World Example: A Costly Fence Line

Let’s make it real.

A buyer in the Dallas-Fort Worth area purchased a storage facility built 15 years ago. The seller provided an old survey and said everything was clean. But after closing, the new owner discovered the perimeter fence crossed 4 feet into the neighbor’s lot.

That strip of land? It ran right alongside the access road. A few months later, the neighbor decided to build a wall—cutting off half the entrance lane.

The result? The facility could no longer handle large moving trucks. Occupancy dropped. The buyer had to negotiate access or move the fence—at a cost of over $80,000.

It all could have been avoided with a new survey and an access endorsement in the title insurance.

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The Two Kinds of Title Insurance You Need

When you buy property, the lender will usually require a lender’s title policy. This protects the bank—not you.

To protect yourself, you also need an owner’s title insurance policy.

This is the one that covers your equity in the deal. If someone challenges your right to own or use the property, or if an old lien turns up, your owner’s policy can cover legal costs—or even pay you back.

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Tip 1: Always Do a Fresh Title Search

Before you buy, insist on a complete title search. Don’t rely on what the seller says. And don’t skip this even if the property was recently bought or refinanced.

Title searches should cover:

• Past deeds and ownership changes
• Unpaid liens, taxes, or court judgments
• Easements or restrictions on use
• Any signs of legal disputes or claims

A good title company in Dallas will know where to look. But make sure they’ve handled commercial property—ideally, self-storage.

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Tip 2: Order a New ALTA Survey

An ALTA/NSPS survey is the gold standard for commercial deals. It gives a full picture of:

• Property boundaries
• Encroachments (like fences or sheds crossing lot lines)
• Easements and rights of way
• Legal access from public roads

It’s not cheap—usually a few thousand dollars—but it’s worth it. Title companies often use the survey to decide what they’ll insure, and what they’ll exclude.

No survey = more exceptions in your policy.

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Tip 3: Don’t Skip Endorsements

Most people don’t realize this, but title insurance is just a base policy. The real power comes from endorsements—add-ons that cover specific risks.

Here are some key ones for self-storage facilities in Dallas:

• Access endorsement — Confirms you have legal road access.
• Survey endorsement (ALTA 9 or similar) — Covers issues shown in a new survey.
• Zoning endorsement — Ensures your use (storage) complies with zoning laws.
• Minerals endorsement — Important in Texas if someone else owns the subsurface rights.
• Contiguity endorsement — If you’re combining multiple lots, ensures they connect legally.

Each endorsement costs extra, but they often prevent lawsuits or expensive repairs later.

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Tip 4: Watch for Hidden Encumbrances

An encumbrance is anything that limits how you use your property. Sometimes they’re recorded in the deed. Sometimes they aren’t.

Examples include:

• Unpaid contractor bills
• Old utility easements
• Private agreements with neighbors
• Deed restrictions limiting use

If you buy the property with these in place, they’re your problem now. Make sure your title company finds them—and that your policy either covers them or clearly excludes them so you can negotiate.

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Tip 5: Get Title Right When You Transfer Into an LLC

Most investors buy real estate in their own name, then transfer it into an LLC later for liability protection.

That’s smart. But it can void your title insurance if not done correctly.

In Texas, you’ll want to:

1. Check if your title insurer allows post-closing transfers to LLCs.
2. Get an endorsement that keeps your policy in force after transfer.
3. Make sure your LLC is properly formed and recorded.

Some insurers in Dallas now offer policies that automatically protect the LLC if it’s wholly owned by the original buyer. But don’t assume—ask.

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Tip 6: Know What Title Insurance Doesn’t Cover

Title insurance is powerful, but it doesn’t cover everything.

It won’t protect you from:

• Environmental issues (you’ll need separate reports for that)
• Building code violations
• Zoning changes after you buy
• Issues you knew about but didn’t disclose

It also won’t cover future liens or disputes. If you don’t pay taxes or lose a lawsuit, that’s on you.

But for unknown past problems, it’s your best defense.

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Tip 7: Choose the Right Title Company

Not all title companies are the same. In Dallas, look for ones with experience in commercial real estate—not just residential.

Ask:

• Have they handled storage facilities before?
• Can they help with surveys, zoning issues, and endorsements?
• Will they review your LLC or trust documents?
• Do they know the Texas Basic Manual of Title Insurance?

Some good places to start in Dallas include Fidelity National Title, VanTex Title, and Lawyers Title. But always interview the team—not just the brand.

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Tip 8: Know Your Costs (and Ask for Discounts)

Texas has fixed rates for most title policies. That means the base cost doesn’t vary much between companies.

But you can save money in two ways:

1. Reissue credits — If the property was recently insured, you may get a discount.
2. Bundled services — Some firms offer discounts if you close, insure, and survey through them.

Also, ask for a full breakdown of endorsement costs before closing. Some are negotiable, especially in large deals.

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Think of Title Insurance as Legal Defense

Most of the time, title insurance just sits in a drawer. You hope you never need it.

But when you do need it, it’s like having a legal team already paid for.

It protects your right to own the land. To use it as intended. To earn a return.

And when you’re investing hundreds of thousands—or millions—in a Dallas self-storage facility, that kind of peace of mind is worth every penny.

Get expert help with your Dallas title insurance.