What Happens if You Sell Texas Real Estate Without a COI? (Spoiler: Bad)
Selling Texas Real Estate Without Proper Insurance Coverage Exposes Both Parties to Risk
Buyers and sellers are asking more questions about liability and documentation. Texas markets stay busy, and protection gaps matter now more than ever.
What Happens if You Sell Texas Real Estate Without a COI? (Spoiler: Bad) is a lack of proof that one party has enough insurance to cover potential claims. This document, called a Certificate of Insurance, confirms active policies and required coverage. Without it, deals stall, costs rise, and legal exposure grows.
Why Courts and Lenders Treat Missing COI as a Serious Problem studies indicate that unclear responsibility increases disputes. Risk transfer fails, leaving buyers or sellers exposed to out-of-pocket losses. Title companies often pause closings until proof appears.
A clear COI protects all sides and keeps deals moving smoothly.
What happens if you sell Texas real estate without a COI?
It exposes you to uncovered liability, delays closing, and may void contract protections.
Can a contract work without a COI in Texas?
Legally possible, but lenders and title firms usually reject it due to uncontrolled risk.
