Bulletin: TX000074

Dear Associates:

Procedural Rule P-2 provides that amending the area and boundary exception to read only "shortages in area" requires that the title company review a survey or evidence of a survey of any age brought current by the Affidavit T-47. Any time you receive a request to amend the area and boundary exception, you must follow this rule. This applies to owner policies as well as mortgagee policies.

Procedural Rule P-50 provides that the title company may issue forms T-19 and T-19.1 Restrictions, Encroachments and Minerals Endorsement if its underwriting requirements are met and the premium is paid. Procedural Rule P-9b14 provides the same thing for the T-17 Planned Unit development Endorsement. Neither of these rules requires a survey or evidence of a survey in order to issue these endorsements.

If you are requested by the lender to issue the T-19 or the T-17 but are not asked to amend the area and boundary exception, you may do so for platted lots without reviewing or requiring a survey or evidence of a survey. If you are insuring new construction (that is, no policy has been issued showing the improvement to the property), a survey is still required. If insuring acreage tracts with no survey, you can’t provide the area and boundary amendment and you must also delete 4 a, b, c and d of the T-19 and from the T-19.1.

A survey or evidence of a survey is required to issue a T-19.1 or to amend coverage in the OTP. For those offices that are automatically opting to make the area and boundary amendment in the OTP, be sure to advise the buyer that they should arrange with the seller to be furnished with a copy of the seller's old survey or they will need to provide a new one at closing.

If you have questions, please contact a Texas Underwriting Counsel.

Sincerely,

John Rothermel, III
Texas Agency Manager
Texas Senior Underwriter