See Also:	12.26 Loan Policies 14.12 Owner Policies
Exceptions:	None
Bulletins:	None
Forms:	None

 

Land (P-1.a)

See Also:	1.48 Air Space And Air Rights  3.88 Crops  5.00 Easements And Easement Insurance  6.20 Fixtures  12.24 Mobile And Manufactured Homes  19.20 Timber Lands
Exceptions:	None
Bulletins:	TX000007 New Title Insurance Policies (effective October 1, 1991) TX000032 1995 Texas Legislation.
Forms:	None

 

P-1.a Land:

Please refer to Procedural Rule P-1.a on the TDI website. 

Comment: The insured land includes growing crops, fixtures, and standing timber.
In order to insure an easement, you must describe the easement in Schedule A and you must examine the title to the easements for the benefit of the title insurer.

A mobile home may be an improvement that is part of the insured land.

Air space (such as an avigation easement or severed air rights) may be separately insured.

 

Company (P-1.b)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.b Company:

Please refer to Procedural Rule P-1.b on the TDI website. 

Comment: These regulations apply to all title insurance agents, title insurers, and direct operations doing business in Texas.

 

Board (P-1.c)

See Also:	None
Exceptions:	None
Bulletins:	TX000009 House Bill 2.
Forms:	None

 

P-1.c Board:

Please refer to Procedural Rule P-1.c on the TDI website. 

Comment: The State Board has been replaced by the Commissioner of Insurance. The Commissioner promulgates forms, premiums, and rules pursuant to Article 9.07, Texas Insurance Code. The Commissioner (or an administrative law judge) shall conduct biennial hearings no earlier than July of even-numbered years.

 

Policy (P-1.d)

See Also:	12.26 Loan Policies 14.12 Owner Policies 20.12 United States Of America Policy Forms
Exceptions:	None
Bulletins:	None
Forms:	TX Certificate of Title T-6 TX Certificate of Title for Easements (U.S.A.) T-9 TX Loan Policy T-2 TX Loan Policy Schedule A T-2 TX Loan Policy Schedule B T-2 TX Owner’s Policy T-1 TX Owner’s Policy Schedule A T-1 TX Owner’s Policy Schedule B T-1 TX Policy of Title Insurance (U.S.A.) T-11 TX Residential Owner Policy Schedule A T-1R TX Residential Owner Policy Schedule B T-1R TX Residential Owner Policy T-1R TX Short Form Residential Loan Policy of Title Insurance and Addendum T-2R Limited Pre-Foreclosure Policy T-98 Texas Limited Coverage Residential Chain of Title Policy T-53 Loan Title Policy Binder on Interim Construction Loan T-13 Texas Residential Limited Coverage Junior Loan Policy Combined Schedule T-44

 

P-1.d Policy:

Please refer to Procedural Rule P-1.d on the TDI website.  

Comment: Texas has the following promulgated policies:

• Certificate of Title (USA) T-6
• Certificate of Title for Easements (USA) T-9
• Loan Policy of Title Insurance T-2
• Owner’s Policy of Title Insurance T-1
• Policy of Title Insurance (USA) T-11
• Residential Owner Policy of Title Insurance T-1R
• Texas Short Form Residential Loan Policy of Title Insurance T-2TR
• Limited Pre-Foreclosure Policy T-98
• Texas Limited Coverage Residential Chain of Title Policy T-53
• Loan Title Policy Binder on Interim Construction LoanT-13
• Texas Residential Limited Coverage Junior Loan Policy Combined Schedule T-44

American Land Title Association (ALTA) policies may not be issued in Texas.

 

Title Examination (P-1.e)

See Also:	None
Exceptions:	None
Bulletins:	TX000045 Title Search Requirements MU000018 Time Search Requirements
Forms:	None

 

P-1.e. Title Examination:

Please refer to Procedural Rule P-1.e on the TDI website. 

Comment: The title examination is undertaken for the benefit of the title company to determine insurability of title. Title insurance agents may rely upon "starters" or prior policies by other title companies under some circumstances. A company may not charge for examination if a transaction fails to close.

 

Closing The Transaction (P-1.f)

See Also:	3.20 Closing Protection Letters .
Exceptions:	None
Bulletins:	TX000030 New Rules and Forms; Effective August 1, 1995 NL000022 Insuring Around.
Forms:	None

 

P-1.f Closing the Transaction:

Please see Procedural Rule P-1.f on the TDI website. 

Comment: This provision is consistent with the statutory definition under article 9.02(n) of the Texas Insurance Code. The title insurance company may issue an insured closing service or closing protection letter to a lender (on any transaction) or to a buyer/seller (if the transaction exceeds $250,000) at no charge.

 

Insuring Around (P-1.g)

See Also:	TX 5.30 Express Insurance TX 9.14 Insuring Around
Exceptions:	None
Bulletins:	TX000013 Express Insurance: October 30, 1992.
Forms:	None

 

P-1.g Insuring Around:

Please refer to Procedural Rule P-11 on the TDI website.

Comment: Texas Insurance Code § 2502.003, prohibits willful issuance without exception to an outstanding enforceable recorded lien, except as allowed by Rules P-11 and P-39(c). [Note that P-11 still refers to Article 9.08]

 

Title Insurance Agent (P-1.h)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.h Title Insurance Agent: 

Please refer to Procedural Rule P-1.h on the TDI website. 

Comment: A title insurance agent must be licensed and have an abstract plant (as defined in Rule P-12) for each county in which it maintains an office. Only a title insurance agent licensed in Texas may receive a portion of the title premium, pursuant to Article 9.30 B(2).

 

Abstract Plant (P-1.i)

See Also:	None
Exceptions:	None
Bulletins:	TX000045 Title Search Requirements MU000018 Title Search Requirements.
Forms:	None

 

P-1.i Abstract Plant:

Please refer to Procedural Rule P-1.i on the TDI website. 

Comment: An abstract plant must include geographically indexed records for 25 years. A title insurance agent must have an abstract plant for each county in which it maintains an office. Title searches for the benefit of the underwriter are governed by separate guidelines and not by the period covered by the abstract plan.

 

Endorsement (P-1.j)

See Also:	1.36.5 Endorsement Forms Relative to the Insurance Provisions of the Policy 5.04 Endorsements T-3 Guideline - General Endorsement T-3 Guideline - TX Down Date Endorsement for Owner Policy T-3 Guideline - TX Assignment of Lien Endorsement T-3 Guideline - TX Down Date Endorsement for Loan Policy T-3 Guideline - TX Down Date Interim Construction Loan Endorsement T-4 Guideline - TX Leasehold Owner's Policy Endorsement T-4R Guideline - TX Residential Leasehold Endorsement T-5 Guideline - TX Leasehold Loan Policy Endorsement T-12 Guideline - USA Title Policy and Endorsement Texas Forms T-14 Guideline - TX First Loss Endorsement T-16 Guideline - Texas Loan Policy Aggregation Endorsement - Loan to T-2 Loan Policy T-17 Guideline - TX Planned Unit Development Endorsement T-19 Guideline - TX Restrictions, Encroachments, Minerals Endorsement T-19.1 Guideline - (Restrictions, Encroachments, and Mineral Endorsement-Land; Owner's) T-19.2 Guideline - Minerals and Surface Damage Endorsement T-19.3 Guideline - TX Minerals and Surface Damage Endorsement T-23 Guideline – Access T-24 Guideline - TDI Endorsement (Non-imputation) T-24.1 Guideline - Mezzanine Financing T-25 Guideline – Contiguity T-25.1 Guideline - Contiguity-Multiple Parcels T-26 Guideline - TX Additional Insured Endorsement T-27 Guideline - TX Assignment of Rents/Leases Endorsement T-28 Guideline - TX Condominium Endorsement T-30 Guideline - Tax Deletion Endorsement T-31 Guideline - TX Manufactured Housing Endorsement T-31.1 Guideline - TX Supplemental Coverage Manufactured Housing Unit Endorsement T-33 Guideline - Variable Rate Mortgage T-33.1 Guideline - TX Variable Rate Mortgage-Negative Amortization Endorsement T-34 Guideline - TX Increased Value Endorsement for Owner Policy T-35 Guideline - TX Revolving Credit Endorsement T-36 Guideline - TX Environmental Protection Lien Endorsement T-38 Guideline - TX Partial Release, Release of Additional Collateral, Modification Agreement, Reinstatement Agreement, or Release from Personal Liability Endorsement T-39 Guideline - TX Balloon Mortgage Endorsement T-42 Guideline - TX Equity Loan Mortgage Endorsement T-42.1 Guideline - TX Supplemental Coverage Equity Loan Mortgage Endorsement T-43 Guideline - TX Reverse Mortgage Endorsement T-45 Guideline - Texas Residential Limited Coverage Junior Loan Policy Home Equity Line of Credit/Variable Rate Endorsement T-46 Guideline - Texas Residential Limited Coverage Junior Loan Policy Additional Coverage Endorsement T-48 Guideline – Coinsurance T-99 Guideline - TX Limited Pre-Foreclosure Policy Down Date Endorsement
Exceptions:	None
Bulletins:	None
Forms:	Form T-3: General Endorsement (See Form T-3 instructions for details) T-3 – I:  TX Extension of Construction Binder Endorsement T-3- II:  Use Upon Completion of Improvements Endorsement T-3 – III: TX Assignment of Lien Endorsement T-3 – IV: TX Correction of Policy or Binder Endorsement T-3 – V: TX Date Down Endorsement for Loan Policy T-3 – VI: Use to Amend Exception as to Area and Boundaries Endorsement T-3 – VII: TX Date Down Interim Construction Loan Endorsement T-3 – VIII: TX Date Down Endorsement for Owner's Policy of Title Insurance Form T-4: Leasehold Owner's Policy Endorsement Form T-4R: Residential Owner's Leasehold Endorsement Form T-5: Leasehold Loan Policy Endorsement Form T-12: Endorsement (USA) Form T-14: First Loss Endorsement Form T-15: Last Dollar Endorsement Form T-16: Loan Policy Aggregation Endorsement Form T-17: Planned Unit Development Endorsement Form T-19: Restrictions, Encroachments, Minerals Endorsement Form T-19.1: Restrictions, Encroachments, Minerals Endorsement - Owner's Policy Form T-19.2: Minerals and Surface Damage Endorsement Form T-19.3: Minerals and Surface Damage Endorsement Form T-23: Access Endorsement Form T-24: Non-Imputation Endorsement Form T-24.1: Non-Imputation Endorsement (Mezzanine Financing) Form T-25: Contiguity Endorsement Form T-25.1: Contiguity Endorsement Form T-26: Additional Insured Endorsement Form T-27: Assignment of Rents/Leases Endorsement Form T-28: Condominium Endorsement Endorsement Form T-30: Tax Deletion Form T-31: Manufactured Housing Endorsement Endorsement Form T-31.1: Supplemental Coverage Manufactured Housing Unit Endorsement Form T-33: Variable Rate Mortgage Endorsement Form T-33.1: Variable Rate Mortgage-Negative Amortization Endorsement Endorsement Form T-34: Increased Value Endorsement Form T-35: Future Advance/Revolving Credit Endorsement Endorsement Form T-36: Environmental Protection Lien Endorsement Form T-36.1: Commercial Environmental Protection Lien Endorsement Endorsement Form T-38: Loan Policy of Title Insurance Endorsement Form (Pursuant to P-9.b.(3)) Endorsement Form T-39: Balloon Mortgage Form T-42: Equity Loan Mortgage Endorsement Form T-42.1: Supplemental Coverage Equity Loan Mortgage Endorsement Form T-43: Texas Reverse Mortgage Endorsement Form T-45: Texas Residential Limited Coverage Junior Loan Policy Down Date Endorsement Form T-46: Texas Residential Limited Coverage Junior Loan Policy Home Equity Line of Credit/Variable Rate Endorsement Form T-48: Co-Insurance Endorsement Form Form T-54 : Severable Improvements Endorsement Form T-99: Limited Pre-Foreclosure Policy Down Date Endorsement Form

 

P-1.j Endorsement:

Please refer to Procedural Rule P-1.j on the TDI website.  

Comment: Only promulgated endorsements may be issued in Texas. Those endorsements include those listed above. 

 

Person (P-1.k)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.k Person:

Please refer to Procedural Rule P-1.k on the TDI website. 

 

Title Insurance Company (P-1.l)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.l Title Insurance Company: 

Please refer to Procedural Rule P-1.l on the TDI website. 

Comment: Only licensed title insurance companies may engage in the business of title insurance as defined by Article 9.02(b), Texas Insurance Code.

 

Date of the Original Indebtedness (P-1.m)

See Also:	None
Exceptions:	None
Bulletins:	TX000014 New Rules Effective October 30, 1992 TX000017 Refinancing Loans on Homestead.
Forms:	None

 

P-1.m Date of the Original Indebtedness: 

Please refer to Procedural Rule P-1.m on the TDI website. 

Comment: According to Staff Letter (October 4, 1993) by the Department of Insurance, the date of the mortgagee policy insuring the existing deed of trust to be refinanced is equivalent to the "Date of the Original Indebtedness" as used in Rule R-8. To determine the available refinance credit under R-8, the most recent mortgagee policy is the "Date of the Original Indebtedness".

 

Fiscal Year (P-1.n)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.n Fiscal Year:

Please refer to Procedural Rule P-1.n on the TDI website. 

 

Verifying The Services Rendered (P-1.o)

See Also:	3.28 Commitments .
Exceptions:	None
Bulletins:	TX000044 Commissioner's Order for 1996 Rate Hearing.
Forms:	None

 

P-1.o Verifying The Services Rendered:

Please refer to Procedural Rule P-1.o on the TDI website. 

Comment: If third parties (title insurance companies, title insurance agents, or Texas licensed attorneys) are paid a portion of the premium, the payment must be disclosed in Schedule D of the Commitment (Rule P-21) or Schedule D of the Limited Pre-Foreclosure Policy (T-40) (Rule P-43). The party receiving payment must complete Form T-00 and furnish an invoice; any attorney receiving payment must file a schedule of charges with the payor title company 30 days before rendering service.

 

Title Insurance (P-1.p)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.p Title Insurance:

Please refer to Procedural Rule P-1.p on the TDI website.

Comment: Article 9.02(a) Texas Insurance Code, defines title insurance. Title insurance is regulated in Texas pursuant to Article 9.01, et seq., Texas Insurance Code. In issuing title insurance forms, the title company may use only those premiums, rules, and forms promulgated by the Commissioner as provided in Article 9.07.

 

The business of title insurance (P-1.q)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.q The business of title insurance:

Please refer to Procedural Rule P-1.q on the TDI website. 

Comment: Article 9.02(b), Texas Insurance Code, defines the business of title insurance. Article 9.09 provides that only title insurers may engage in the business of title insurance and that title insurers may not engage in the business of other insurance. In issuing title insurance forms, the title company may use only those premiums, rules, and forms promulgated by the Commissioner as provided in Article 9.07.

 

Commissioner (P-1.r)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.r Commissioner:

Please refer to Procedural Rule P-1.r on the TDI website. 

Comment: The Commissioner promulgates the premiums, rules, and forms for use by title companies. Title companies may not issue other forms such as CLTA (California Land Title Association) or ALTA (American Land Title Association) forms.

 

Escrow Officer (P-1.s)

See Also:	None
Exceptions:	None
Bulletins:	SLS2018003 - UNDERWRITING - Remote Online Notarization TX2018005 - UNDERWRITING - Remote Online Notarization (RON) TX2020005 - UNDERWRITING - Use of RON in Home Equity Transactions TX2020006 - UNDERWRITING - Notarization by video and audio conference for durable powers of attorney and certain other documents [Revised 4-17-20; 4-30-20] TX2020007 - UNDERWRITING - Notarization by video and audio conference for Real Estate Instruments
Forms:	None

 

P-1.s Escrow Officer:

Please refer to Procedural Rule P-1.s on the TDI website.

Comment: The Minimum Escrow Accounting Procedures and Internal Controls require two signatures on escrow checks (one must be an escrow officer), unless the "escrow agent "has four or fewer employees or unless the "escrow agent "is a sole proprietorship and the owner signs the checks. Texas Insurance Code §.2652.001 prohibits a person from acting in capacity of an escrow officer unless licensed and bonded. §.2652.001 prohibits an attorney from conducting business in the name of the title company unless the attorney and the attorney's bona fide employees who close transactions are licensed as escrow officers. Rule P-28 requires escrow officers to obtain 10 hours of continuing education every two years.

 

Foreign Title Insurance Company (P-1.t)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.t Foreign Title Insurance Company:

Please refer to Procedural Rule P-1.t on the TDI website. 

Comment: Foreign title insurance companies conducting the business of title insurance in Texas must comply with and use the premiums, rules, and forms promulgated by the Commissioner.

 

Residential real property (P-1.u)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.u Residential real property:

Please refer to Procedural Rule P-1.u on the TDI website.

Comment: Rule P-18 requires issuance of a commitment on residential real property if an owner policy has been ordered. Rule P-38 requires issuance of the Residential Owner Policy of Title Insurance (T-1R) if the land is residential real property and if the insured is a natural person. Article 9.07A, Texas Insurance Code, requires issuance of the Residential Owner Policy (T-1R) only if the insured is a natural person. If the insured is not a natural person (e.g., corporation. limited liability company, or partnership), you must issue the Owner Policy (T-1). You may issue the Residential Owner Policy (T-1R) upon request to a natural person prior to construction of improvements on residential real property if the policy includes the cost of construction.

The environmental protection lien endorsement (T-36) also may be issued on apartment complexes and on all residential property not exceeding 25 acres. If the land exceeds 25 acres, please call our underwriting personnel.

 

Thing of Value (P-1.v)

See Also:	17.06 Real Estate Settlement Procedures Act (RESPA) .
Exceptions:	None
Bulletins:	NL000015 RESPA NL000033 Amendments to Real Estate Settlement Procedures Act (RESPA) Regulation NL000058 New RESPA Rule and Policy Statements TX000009 House Bill 2.
Forms:	None

 

P-1.v Thing of Value:

Please refer to Procedural Rule P-1.v on the TDI website. 

Comment: Article 9.30, Texas Insurance Code, and RESPA prohibit the giving of any thing of value for referral of business. Staff Letter (April 5, 1994) of the Texas Department of Insurance concluded that Article 9.30 prohibits (1) cash payments to a realtor, builder, developer, lender, or other party for business; (2) furnishing services such as fax service, telephone service, mail or delivery services at the expense of the title company without charge to the party receiving the benefit; (3) printing services to solicit title business, such as flyers, brochures, or other printed material; and (4) paying for and sponsoring open houses. Staff Letter (April 1994) stated that a title insurance agent may advertise. The title insurance agent may pay for advertising the title company in a publication, but a title insurance agent may not pay for any other company's advertisements. According to Bulletin 143 by the State Board of Insurance (December 18, 1973), holding earnest money checks or lending earnest money to prospective clients is a rebate. Article 9.30 authorizes "legal promotional and educational activities? not conditioned on referrals. Bulletin 158 by the Department of Insurance (August 6, 1996) states that a builder or realtor may own stock in the title agent corporation, but this form may not be utilized to pay dividends in any way based upon the shareholders' performance in referring or soliciting title insurance business. Bulletin 158 also states that certain matters constitute a non-exclusive list of illegal rebates:

Providing or contributing to recreational activities or vacation trips.

Conducting, sponsoring or promoting open houses and social functions for realtors, builders or other intermediaries.

Christmas gifts, open house gifts or gifts for other occasions.

Providing personnel, equipment or office space for the use of an intermediaries business.

Providing property profile reports, "farming "reports and brochures promoting the business of realtors, builders or other intermediaries.

Renting space from an intermediary at an inflated cost.

Providing for drawings at educational or promotional events where the winner receives a cash prize or other thing of value.

Providing free meals to intermediaries or their employees at seminars.

 

Premium (P-1.w)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.w Premium:

Please refer to Procedural Rule P-1.w on the TDI website. 

Comment: The title company must charge the premium promulgated by the Commissioner. The title examination is conducted solely for the benefit of title insurer to determine the risk it will take. Closing the transaction does not include escrow and related services.

Attorney (P-1.x)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.x Attorney:

Please refer to Procedural Rule P-1.x on the TDI website. 

Comment: In order to receive premium pursuant to Article 9.30 B(4), an attorney must be licensed in Texas. The title company must disclose payments to an attorney on Schedule D of the commitment pursuant to Rule P-21. Payments to an attorney must be reflected by an invoice, statement of charges executed 30 days before performance, and Form T-00. Article 9.41 prohibits an attorney from conducting business in the name of the title company unless the attorney and the attorney's bona fide employees who close transactions are licensed as escrow officers.

 

Direct Operation (P-1.y)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.y Direct Operation:

Please refer to Procedural Rule P-1.y on the TDI website. 

 

Furnishing title evidence (P-1.z)

See Also:	17.06 Real Estate Settlement Procedures Act (RESPA) .
Exceptions:	None
Bulletins:	TX000045 Title Search Requirements MU000018 Title Search Requirements
Forms:	None

 

P-1.z Furnishing title evidence:

Please refer to Procedural Rule P-1.z on the TDI website. 

Comment: The requirement of 25 years of title information pursuant to Rules P-24 and P-25 (relating in part to directly issued policies) may be satisfied by starters acceptable to the title insurer and by down date searches.

 

Directly Issued Policy (P-1.aa)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.aa Directly Issued Policy:

Please refer to Procedural Rule P-1.aa on the TDI website. 

Comment: In order to issue a directly issued policy (or home office issue), the title insurance company must comply with Article 9.34, Texas Insurance Code. It must secure title evidence from the title insurance agent. If all agents refuse to provide the evidence within the time specified, the title company may issue based on the best evidence available (e.g., standup opinion). Rule P-24 provides guidelines as to the premium paid for title evidence and closing. Those provisions may be varied by written agreement. Rule P-25 defines the reasonable time that the title insurance agent has to furnish title evidence. Otherwise, the title insurance company may rely upon the best evidence available. Under Rule P-26, the title insurance agent furnishing title evidence must be provided a copy of the policy within 30 days after issuance. Under Rule P-22, the person rendering services for a portion of the premium must file a written schedule of charges at least 30 days prior to rendering of the service. However, this provision does not apply to title insurance agents; it applies to attorneys. The person receiving a portion of the premium must furnish a T-00 verifying rendition of the services and an invoice.

 

Owner Policy (P-1.bb)

See Also:	14.12 Owner Policies 17.38 Residential Owner Title Policies
Exceptions:	None
Bulletins:	None
Forms:	TX Owner Policy T-1 TX Owner Policy Schedule A T-1 TX Owner Policy Schedule B T-1 TX Residential Owner Policy T-1R TX Residential Owner Policy Schedule A T-1R TX Residential Owner Policy Schedule B T-1R

 

P-1.abb Owner Policy:

Please see Procedural Rule P-1.bb on the TDI Website.

Comment: 

Rule P-38 requires issuance of the Residential Owner Policy of Title Insurance (T-1R) if the land is residential real property and if the insured is a natural person. The Residential Owner Policy of Title Insurance (T-1R) may not be issued to other persons.  You must issue the Owner Policy (T-1) if the insured is not a natural person (e.g., corporation, limited liability company, or partnership). On all other (nonresidential) property, you must issue the Owner Policy (T-1).

 

Commitment for Title Insurance (P-1.cc)

See Also:	3.28 Commitments .
Exceptions:	None
Bulletins:	TX000015 New Forms Effective January 1, 1993 TX000044 Commissioner's Order for 1996 Rate Hearing
Forms:	TX Commitment T-7

 

P-1.cc Commitment for Title Insurance:

Please refer to Procedural Rule P-1.cc on the TDI website. 

Comment: The commitment is an insurance form and a statement of the conditions for issuance of a policy; it is not a representation of status of title. The commitment must be delivered (1) to a proposed insured owner on residential real property, or (2) to a proposed insured under an owner policy not exceeding $300,000, or (3) to any other proposed insured upon request if the company is willing to issue, as provided in Rule P-18. There is no charge for the commitment unless it is issued to the Texas Department of Transportation (P-14) or unless it is issued to the FDIC where no sale is applicable (P-15, R-25). A commitment may not be issued prior to issuance of the Limited Pre-Foreclosure Policy (T-40, P-43).

Department (P-1.dd)

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-1.dd Department:

Please refer to Procedural Rule P-1.dd on the TDI website. 

 

Loan Policy (P-1.ee)

See Also:	12.26 Loan Policies
Exceptions:	None
Bulletins:	None
Forms:	T-2 TX Loan Policy Schedule A  T-2R TX Short Form Residential Loan Policy of Title Insurance and Addendum

 

P-1.ee Loan Policy:

Please refer to Procedural Rule P-1.ee on the TDI website. 

 

See Also:	18.40 Surveys .
Exceptions:	None
Bulletins:	TX000013 Express Insurance: October 30, 1992; TX000015 New Forms Effective January 1, 1993; TX000030 New Rules and Forms; Effective August 1, 1995; TX000054 Area and Boundary Exception; TX000061 Commissioner's Order for 2002 Hearing.
Forms:	TX Commitment T-7  TX Title Company Disclosure for Residential Closings 1995  TX Residential Real Property Affidavit T-47

 

P-2 Amendment of Exception to Area and Boundaries

Please refer to Procedural Rule P-2 on the TDI website. 

Comment (P-2.a): The rules define a current survey as evidence of a survey of any date, issued to any person brought current by use of an affidavit as to improvements and boundaries. This procedure applies to residential and commercial properties (and platted property) up to $5 Million. If a current survey is furnished and the area and boundary exception is amended, the Company may provide express insurance against enforced removal pursuant to P-39 if the Company's guidelines are met.(See discussion on T-19). The Title Company Disclosure for Residential Closings (1995) discloses the availability of area and boundary coverage. The commitment (Texas Title Insurance Information) also discloses availability of area and boundary coverage. Because of possible copyright issues, do not provide anyone with a photocopy of a survey, not another title company, lender or even another file. You may give out duplicate signed original surveys. You may note in a current file that you have relied on a review of a survey in prior file no. ______.

Comment (P-2.b): This rule requires acceptance of surveys dated within 7 years of a mortgagee policy covering a refinance on residential real property if the owner executes an acceptable affidavit. We will accept copies of surveys of any date for mortgagee policies on residential refinances if the borrower executes an acceptable affidavit. We are willing to provide express insurance as to encroachments on the Mortgagee Policy if our guidelines are met.

 c. A title insurance company may not discriminate in providing area and boundary coverage in connection with residential real property solely because: (1) the real property is platted or unplatted; or (2) a municipality did not accept a subdivision plat in relation to the real property before September 1, 1975.

 d. A title insurance company may not require an indemnity from a seller, buyer, borrower, or lender to provide area and boundary coverage.

 e. If an affidavit is provided to the Company pursuant to this Rule and the affidavit is incorrect, whether due to the negligence or intentional act of the affiant, the area and boundary coverage given pursuant to this Rule shall be unaffected and in full force and effect; provided, however, the exclusions contained in the policy shall not be affected in any way.
 

 

See Also:	15.04 Parties In Possession
Exceptions:	None
Bulletins:	TX000010 Waiver of Inspection and Disclosure to Owner
	TX000028 Disclosures: Texas Residential Owner Policy of Title Insurance.
Forms:	TX Title Company Disclosure for Residential Closings 1995

 

P-3. Exception to "Rights of Parties in Possession" 

Please refer to Procedural Rule P-3 on the TDI website. 

Comment: The exception may be inserted in the policy if the insured executes a written waiver of inspection. The title company may rely on an affidavit regarding possession to issue a mortgagee policy on residential real property or apartment complexes or may make an inspection in other transactions in order to issue without this exception. We do not rely on this exception to issue if a foreclosed owner remains in possession. The Title Company Disclosure for Residential Closings (1995) includes a waiver of inspection.

 

 

See Also:	3.76 Covenants, Conditions And Restrictions
	12.26 Loan Policies
Exceptions:	None
Bulletins:	TX000002 Restriction Disclosures: City of Houston
	TX000013 Express Insurance: October 30, 1992
	NL000069 Restrictions Based on Race, Color, Religion, Sex, Handicap, Familial Status, or National Origin.
Forms:	None

 

P-4. Restrictive Covenants Exception

Please refer to Procedural Rule P-4 on the TDI website. 

Comment: The Company must approve deletion of or express insurance against restrictions based upon violations, subsequent suit, or agreement to terminate restrictions. The mortgagee policy exception to restrictions insures that violations will not result in invalidity of the insured mortgage; it does not insure against all violations.

An exception to restrictions which contain discriminatory provisions (based on race, color, religion, sex, handicap, familial status, or national origin) must note the invalidity of or omit such provisions. Restrictions which contain no other provisions must not be excepted.

Sellers of property in some cities without zoning must provide written notice of restrictions to purchasers.

 

See Also:	14.12 Owner Policies
Exceptions:	None
Bulletins:	TX000010 Waiver of Inspection and Disclosure to Owner
	TX000028 Disclosure: Texas Residential Owner Policy of Title Insurance.
Forms:	TX Standard Commitment Transmittal Letter 1992
	TX Title Company Disclosure for Residential Closings 1995

 

P-5. Special Exceptions
Please refer to Procedural Rule P-5 on the TDI website. 

Comment: "General Exception? (such as "parties in possession) are allowed only if provided in a promulgated form or rule.

See Also:	TX 3.24 Coinsurance T-48 Guideline - Coinsurance 17.24 Reinsurance
Exceptions:	(COI) Coinsurance
Bulletins:	TX2015001 Increasing Texas Single Risk Retention Limits TX2014003 Coinsurance Endorsement Form (T-48) NL000059 Overlimit Authority and Reinsurance Form
Forms:	Co-insurance Endorsement T-48

 

P-6. Co-Insurance: 

Please refer to Procedural Rule P-6 on the TDI website. 

Comment: Coinsurance with another title company occurs if each title company issues a separate policy covering a portion of the risk. We require a separate title examination by our title insurance agent, unless underwriting personnel agree otherwise, if the Company coinsures with another title company. The insured generally does not prefer coinsurance since the insured must present claims to each title company and negotiate settlement separately. The cost of insurance is higher if the policies do not total at least $15,000,000 in the aggregate because the charge for each policy is calculated from dollar one for its allocated risk.

 

See Also:	12.26 Loan Policies
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-7.  Name of Insured on Loan Policy of Title Insurance or Proposed Insured on Commitment for Loan Policy of Title Insurance

Please refer to Procedural Rule P-7 on the TDI website. 

Comment: Bulletin No. 157 (July 31, 1992) of the Texas Department of Insurance generally prohibits the use of "its successors and assigns "in the name of the insured on Schedule A of the mortgagee policy and authorizes "ABC Mortgage Company, its successors, and/or assignees who are the lawful owner or owners of the evidence of debt identified herein and any subsequent owner or owners thereof." This limitation does not apply to policies issued to FNMA, VA, or HUD (which can say "and their successors and assigns as their interests may appear).

 

 

See Also:	TX 12.12 Mechanic's Liens TX 14.12 Owner Policies .
Exceptions:	None
Bulletins:	TX000004 Sales Prior to Completion of Improvements TX000022 Mechanic's Lien Procedures.
Forms:	STG Indemnity Agreement 1 TX Final Affidavit and Agreement 1 TX Final Affidavit and Agreement 2 TX Affidavit and Indemnity as to Debts, Liens and Possession 1993

 

P-8 Issuance of Policies Prior to Completion of Improvements:

Please refer to Procedural P-8 on the TDI website. 

 

P-8.a Owner Policy

Mechanic's Lien Exception

Limited Liability Exception

Pay As You Go Provision

Comment on P-8(a)(1): If the owner policy includes the cost of contemplated improvements or is issued after commencement of construction, you must insert the mechanic's lien exception and limited liability exception (if applicable) in the policy. The Policy must include the "Pay As You Go" provision if the policy is paid in installments under Rule R-2.           

Comment on P-8(a)(2): Upon completion of improvements, the completion endorsement may be issued at no charge on the T-3 form pursuant to Endorsement Instruction II. You must be furnished satisfactory evidence of completion of improvements and payment of all bills to contractors and subcontractors.

In addition, if the Company's underwriting requirements have been met, the T-19.1 Endorsement may be issued or coverage affirmed as set out in Rules R-29 and P-50, using the promulgated Endorsement form and containing the applicable promulgated language.

 

Mortgagee Policy (P-8.b)

Mechanic's Lien Exception

Pending Disbursement Clause

Pay As You Go Provision

Comment on P-8(b)(1): If the insured mortgage secures construction advances or if the insured mortgage is recorded after construction commences, the mortgagee policy must include the mechanic's lien exception and pending disbursement clause (if applicable). If the mortgage encumbers homestead, a mechanic's lien contract must be secured and the title company must verify that no work commenced before execution of the contract. The Policy must include the "Pay As You Go "provision if the Policy is paid in installments under Rule R-2.

Comment on P-8(b)(2): Upon completion of improvements, the completion endorsement may be issued at no charge on the T-3 form pursuant to Endorsement Instruction II. You must be furnished satisfactory evidence of completion of improvements and payment of all bills to contractors and subcontractors. On homestead, the owner must acknowledge that the improvements comply with the contract.

Mechanic's Lien Exception

Pending Disbursement Clause

Comment on P-8(b)(3): If a Mortgagee Policy is issued after commencement of construction, the policy must include the mechanic's lien exception and pending disbursement clause. If the mortgage encumbers homestead, a mechanic's lien contract must be executed before commencement under that contract.

 

See Also:	P-1(j) Endorsements 12.24 Mobile And Manufactured Homes
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-9. Endorsement of Owner’s or Loan Policies:

Please refer to Procedural Rule P-9 on the TDI website. 

P-9.a Owner Policy

Comment to P-9(a)(1): See T-4 Guideline - TX Leasehold Owner's Policy Endorsement

Comment to P-9(a)(2): See T-34 Guideline - TX Increased Value Endorsement for Owner Policy and T-34 Guideline - TX Increased Value Endorsement for Residential Owner Policy

Comment to P-9(a)(3): See T-3 Guideline - TX Down Date Endorsement for Owner Policy

 

P-9.b Loan Policy

Comment to P-9(b)(1-2): See T-3 Guideline - TX Assignment of Lien Endorsement

Comment to P-9(b)(3): See T-38 Guideline - TX Partial Release, Release of Additional Collateral, Modification Agreement, Reinstatement Agreement, or Release from Personal Liability Endorsement

Comment to P-9(b)(4): See T-3 Guideline - TX Down Date Endorsement for Loan Policy and T-3 Guideline - TX Down Date Interim Construction Loan Endorsement

Comment to P-9(b)(5): See T-5 Guideline - TX Leasehold Loan Policy Endorsement

Comment to P-9(b)(6): See T-33 Guideline - Variable Rate Mortgage and T-33.1 Guideline - TX Variable Rate Mortgage-Negative Amortization Endorsement

Comment to P-9(b)(7): See T-31 Guideline - TX Manufactured Housing Endorsement

Comment to P-9(b)(8): See T-35 Guideline - TX Revolving Credit Endorsement

Comment to P-9(b)(9): See T-36 Guideline - TX Environmental Protection Lien Endorsement

Comment to P-9(b)(10): See T-39 Guideline - TX Balloon Mortgage Endorsement

 

See Also:	17.24 Reinsurance
Exceptions:	None
Bulletins:	NL000059 Overlimit Authority and Reinsurance Form
Forms:	STG Overlimits Approval Request 1 .
	ALTA Facultative Reinsurance Agreement (9/24/94) 1
	TX Facultative Reinsurance Agreement T-18.1
	Form T-21.1: Tertiary Reinsurance Agreement Type I
	Form T-21.2: Tertiary Reinsurance Agreement Type II

 

P-10. Faclutative Reinsurance

Please refer to Procedural Rule P-10 on the TDI website. 

Comment: There is no additional charge in Texas to the public for reinsurance. Although Article 9.07, Texas Insurance Code, provides that premium rates for reinsurance are not promulgated by the Texas Department of Insurance, the promulgated reinsurance forms include a reinsurance commitment, facultative reinsurance agreement (Form T-18.1; ALTA Facultative Reinsurance Agreement 4/6/90) and tertiary reinsurance agreement (Form T-21). The reinsurance commitment form is rarely used. Confirmation usually is evidenced by an acceptance letter. The Texas Facultative Reinsurance Agreement (T-18.1) is not the most current ALTA form (the most current ALTA form being dated 9/24/94). Paragraph 3 of the Texas form provides for direct access by the insured against the reinsurer. Under this form, the policy issuing company (the ceder) retains a portion of the risk as its "primary loss risk." The secondary loss risk is generally shared by the ceder and reinsurers. This Form may not be amended. Reinsurance may occur in three circumstances: (1) the statutory limits for the Company may be exceeded; (2) the Company's self-imposed limits may be exceeded; and (3) the insured may require reinsurance if it is not satisfied with the retention limits of the Ceder (policy issuing company). Under Article 9.19 of the Texas Insurance Code, no company may retain (without reinsurance) more than 50 percent of its surplus on a single risk. The title insurer may reinsure through companies licensed to do business in Texas. The Texas Department of Insurance may authorize a company to secure reinsurance from a non-qualified title insurer if the Company has exhausted its opportunity to acquire reinsurance from other companies doing business in Texas. The Department also may permit a title insurer and reinsurers to retain additional liability of not more than 40 percent of surplus (for a total of 90 percent of surplus) if the title insurer has exhausted the opportunity to acquire reinsurance and the additional liability is incurred as "tertiary insurance "only for loss exceeding the amount of insurance and reinsurance otherwise authorized. In such circumstance, the additional liability must be accepted on a tertiary level. The Texas Tertiary Reinsurance Agreement contains direct access provisions in the event of discontinuance of business by the ceder, if the ceder is adjudged "bankrupt "or if the ceder fails to pay a loss within the time provided in the policy. The insured may notify the reinsurer under the Facultative Reinsurance Agreement (Form T-18.1) that the insured intends to enforce the agreement against the reinsurer and may request payment directly to the insured under the Facultative Reinsurance Agreement pursuant to paragraph 4. On all large policies over the issuing agent's single policy limits, the issuing agent must complete the STG Overlimits Approval Request form.

 

 

See Also:	4.04 Decedent's Estates
	5.20 Estate Taxes
	1.36 Affirmative Insurance
	5.36 Extrahazardous Risk
	6.08 Federal Tax Liens
	10.08 Judgments
	12.12 Mechanic's Liens
	12.26 Loan Policies
	18.32 State Tax Liens Other Than Liens Directly On Real Property
	19.04 Taxes And Assessments
	9.14 Insuring Around
Exceptions:	None
Bulletins:	TX000007 New Title Insurance Policies (effective October 1, 1991)
	TX000008 Recent Legislation
	TX000013 Express Insurance: October 30, 1992
	TX000021 New Texas Legislation
	TX000032 1995 Texas Legislation
	TX000036 1997 Legislation
	NL000012 Federal Debt Collection Procedures Act of 1990
	NL000026 Federal Tax Liens
	NL000052 Federal Update
	TX2010008 Mechanic's Liens Coverage During Construction
	SLS2007007 Insuring Around, Over, or Against Outstanding Enforceable Recorded Defects, Liens, and Encumbrances
Forms:	TX Affidavit as Release of Lien 1993
	TX Insuring Around Consent Letter 1
	TX Letter of Intent to Execute Affidavit 1993
	Form T-13: Mortgagee Title Policy Binder on Interim Construction Loan
	Form T-29: Texas Master Indemnity Agreement

 

P-11. Insuring Around

Please refer to Procedural Rule P-11 on the TDI website. 

Comment: Insuring around "relates only to outstanding enforceable recorded liens.

a.  "Willful issuance" shall be defined as the issuance of a title insurance policy or binder with intent to conceal information by suppressing or withholding title information, the consequence of which could result in a monetary loss either to the title insurance company or to the Insured under the policy or binder.

Comment: Illegal insuring around applies only to intentional concealment or intentional issuance without exception to an outstanding recorded lien known to be enforceable.

b.  "Insuring Around" shall not be construed as prohibiting the issuer of a title insurance policy or binder from issuing a policy or binder without taking exception to a specific lien, or liens, of record when sound underwriting standards and practices would not otherwise prohibit such issuance. Specifically, but not limited to, the term "insuring around" shall not include the issuance of a title insurance policy or binder under the following circumstances:

Comment: The following list of authorized insuring around events is not exhaustive since "sound underwriting "also may comply with this regulation. In such case, we must approve issuance of the policy.

(1)  Where liens securing obligations which, though not released of record, have been discharged to the satisfaction of the title insurance company or agent, and the title insurance company or agent has evidence in its file that the lien has been paid in full;

Comment: You generally should disclose the lien pursuant to the Insuring Around Consent Letter and expressly insure under P-39 if a policy will be issued based on conclusive evidence that the lien has been fully satisfied and if the lien has not been released of record. Proof of payment of a specific note may not be sufficient evidence of satisfaction of a mortgage, if the mortgage secures additional debt. A title insurance company can execute a release of mortgage on one-to-four family property in some cases.

(2)  Where funds are in escrow to pay same, and a recordable release is forthcoming and will be filed for record in the ordinary course of business;

Comment: This rule allows issuance without exception to a lien if the title company secures a written payoff and disburses payment at closing. Bulletin No. 131, dated June 8, 1970 by the State Board of Insurance, prohibits holding a payoff check until a later event (such as subsequent disbursement) before payment of the lien.

(3)  Where liens, in the opinion of counsel, are barred by the statute of limitation;

Comment: A variety of statutes of limitation apply to bar liens.

A federal tax lien will be unenforceable after 10 years and 30 days after date of assessment if no notice of lien is refiled.

State tax liens are generally barred from collection after three years after recordation.  Note that state tax liens for workforce liens are priority liens with no real limitations period.

United States judgment liens are barred after 20 years after recordation (for U.S. judgments rendered on or after May 29, 1981) if not continued by refiling.

Abstracts of judgment (other than U.S. Judgments) are valid only for 10 years after recordation (note that child support judgments filed before September 1, 1997 and restitution liens can be extended by refiling); child support liens filed on or after September 1, 1997 are valid until released. A bankruptcy may terminate an abstract of judgment in some cases.

Mortgages are subject to various possible time limitations for enforcement after the stated maturity date of the note (if the maturity date is not stated, you cannot assume the note is a demand note):

• 6 years after appointment of FDIC as receiver or conservator or after final maturity of the note, whichever is longer;
• 4 years after final maturity of the negotiable note if the note is payable on demand, in installments or has a fixed maturity date; and
• no time limit if held by an U.S. agency or instrumentality (e.g., FmHA or SBA or FDIC corporate).

Suit must be brought on mechanic's lien affidavits within two years after recordation or within one year after completion of all construction, whichever is later. If the land is a residential construction project (on a single family residence), suit must be brought within 1 year after recordation.

Ad Valorem tax liens are unenforceable after 20 years.

Most governmental liens, such as paving, environmental, and weed cutting liens, are not subject to any statute of limitation. Legislation effective 9-1-2002 requires all liens in favor of a state or local government to be recorded using a legal description of the land. Certain exceptions apply. Please consult a Texas Underwriting Counsel if you have any questions.

(4)  Where liens are inchoate and sufficient indemnity executed by a financial institution regulated by State or Federal Government, such as a bank, savings and loan association, life insurance company or surety company has been delivered to, and accepted by, the title insurance company, or where sufficient funds have been deposited with the title insurance company or its agent to assure the ultimate payment and release of record of the liens; provided the written consent of the Insureds (owner and mortgagee) shall be delivered to the title insurance company and retained in its file;

Comment: "Inchoate "liens may include taxes (such as rollback taxes or taxes apparently paid at the end of the year where no evidence of payment is furnished) and paving liens. You must consult with the Company before insuring around such lien. Generally, the Company will not accept an unsecured indemnity from financial institutions, life insurance companies, or surety companies. If the Company does accept an indemnity and/or escrow, it requires an Insuring Around Consent Letter from the insured. The Company prefers to expressly insure under P-39 if it accepts an indemnity.

(5)  Where sufficient indemnity executed by a financial institution regulated by State or Federal Government, such as a bank, savings and loan association, life insurance company or surety company is delivered to, and accepted by, the title insurance company, or where sufficient funds have been deposited with the title insurance company or its agent to protect against mechanic's liens by affidavits which are being contested or disputed; provided the written consent of the Insureds (owner and mortgagee) shall be delivered to the title insurance company and retained in its files;

Comment: The Company generally requires a satisfactory statutory indemnity bond or escrow of funds to insure around mechanic's lien. The Company generally does not rely on unsecured indemnity from a life insurance company or financial institution to insure around mechanic's liens. The Company prefers to expressly insure (under Rule P-39) and will require that the insured sign an Insuring Around Consent Letter. The Company prefers not to insure against a recorded mechanic's lien if suit has been filed to foreclose. The Company will rely upon a proper statutory Bond to Indemnify Against Lien and will consider a Hardeman Act Bond, if no suit has been filed.

(6)  Where a title insurance company has previously issued a policy without taking exception to a specific lien and is called upon to issue a new policy and is already obligated under such prior policy, and will not increase its liability or exposure to the lien by the issuance of such new policy; provided the written consent of the Insureds (owner and mortgagee) shall be delivered to the title insurance company and retained in its files;

Comment: If the Company has previously issued without exception to a lien, it may continue to reissue policies without exception. You must secure an Insuring Around Consent Letter from the insured.

(7)  Where a title insurance company has erred as in (6) above, and another title insurance company discovers the error in preparing to make a subsequent issuance, the second title insurance company may rely upon an indemnity agreement and/or an agreement to defend by the first company, and insure against such lien; provided the written consent of the Insureds (owner and mortgagee) shall be delivered to the title insurance company and retained in its files;

 Comment: The Company will not accept an indemnity from a title insurance agent; it must receive an indemnity from a title insurer in form acceptable to the Company. The insured must sign an Insuring Around Consent Letter.  Effective November 1, 2005, the Texas Insurance Department approved for use the Master Indemnity Agreement (T-29) which covers liens of less than $500,000 consensual and non-consensual , such as abstracts of judgment and state and federal liens.  It does not cover mechanic's lien affidavits.  This form has been approved by the company which has issued it to all underwriters licensed in the State of Texas .  The form covers defects, homestead issues, authority of trustees and executors and others.   

(8)  When issuing a Mortgagee Policy insuring the validity and priority of a lien, the issuer shall not be required to itemize liens and leases that affect the title to the estate or interest, which are subordinate to the lien insured, either by express subordination or by operation of law, unless requested to do so in writing by the insured in which case paragraph 4 of Schedule B may be deleted, and the subordinate lien(s) and lease(s) shall be excepted in Schedule B and the Company may insure therein such lien(s) and lease(s) are subordinate; however, when issuing a Mortgagee's Title Policy Binder on Interim Construction Loan, the Company shall be required to show all subordinate liens in Schedule B-Part 2 of said binder, but a statement may be made therein that such lien(s) is subordinate. When insuring that a lien or lease is subordinate to the lien of the insured mortgage, the Company shall state: "Company insures the insured against loss, if any, sustained by the insured under the terms of the Policy if this item is not subordinate to the lien of the insured mortgage."

Comment: The Company may delete Schedule B, Item 4, upon request. If you delete this item, you should except to specific known subordinate liens and leases. If the subordination, such as a nondisturbance agreement, is conditional, the Company prefers to add "subject to the terms of the subordination "at the end of the insuring provision on priority (Company insures the insured against loss, if any, sustained by the insured under the terms of the Policy if this item is not subordinate to the lien of the insured mortgage, subject to the terms of the Subordination Agreement.") or to separately except to the Subordination Agreement. Examples of matters that may be subordinate include a judgment or tax lien against the purchaser on a purchase money mortgage transaction, leases subject to subordination agreements, or association assessment liens (if the declaration provides).

(9)  In instances where federal estate taxes and state inheritance taxes have not been paid, but the title insurance company:
(a)  Examines a balance sheet of the estate and determines that the estate will have no difficulty in paying its estate and inheritance taxes, and the title insurance company takes an indemnity from responsible persons protecting itself against loss due to unpaid estate and inheritance taxes, or
(b)  Requires sufficient money or other securities to pay estate and inheritance taxes to be left in escrow with it pending payment of such taxes, or pending the receipt of waivers of lien from the taxing authority or authorities, or
(c)  Examines the balance sheet of the estate and determines the estate will have no difficulty in paying its inheritance and estate taxes, and the title insurance company obtains a letter from a responsible person agreeing to see that such taxes are paid out of the assets of the estate.

Comment: If the estate is taxable the Company generally requires a release of the lien by the state and federal government or escrow of funds approved by underwriting personnel and will not rely upon an unsecured indemnity. If the estate furnishes an estate closing letter, you must review the canceled check to the U.S. and you must receive proof of payment of state inheritance taxes (a receipt). If the estate of the decedent is the following net amount or less, no estate taxes are owed:

Lifetime gift amount $1,000,000

Decedent Dying Size of Estate

2002-2003 $1,000,000
2004-2005 $1,500,000
2006-2008 $2,000,000
2009 $3,500,000
2010 tax repealed
2011 and thereafter
(unless changed) $1,000,000

(10)  When a title insurance company previously issues a policy without taking exception to matters covered by the Master Indemnity Agreement (T-29) and is called upon to issue a new policy and is already obligated under such prior policy, and will not increase its liability or exposure to some matter by the issuance of such new policy.
c.  "Texas Master Indemnity Agreement (T-29)" A title insurance company may, in lieu of the execution of separate transaction specific indemnity letters or agreements, indemnify another title insurance company in accordance with P-11b(7) and/or P-11b(10) above by executing the Texas Master Indemnity Agreement (T-29). If a title insurance company elects to provide another title insurance company with a master indemnity agreement, the Texas Master Indemnity Agreement (T-29) must be used if the master indemnity agreement is intended to cover the liens and other matters set forth in the Texas Master Indemnity Agreement (T-29).

 

See Also:	None
Exceptions:	None
Bulletins:	TX000014 New Rules Effective October 30, 1992
Forms:	None

 

P-12.  Abstract Plants
Please refer to Procedural Rule P-12 on the TDI website.

Comment: Rule P-1.i requires the title insurance agent to be licensed and to have an abstract plant for each county in which it maintains an office. The plant is maintained and examination is performed for the sole benefit of the title company. Rule P-12 defines "furnishing title evidence "on direct issues.

 

 

See Also:	3.20 Closing Protection Letters
	12.26 Loan Policies
	19.48 Truth-In-Lending
Exceptions:	None
Bulletins:	NL000051 Regulation Z: High Cost Mortgage Act None.
Forms:	TX Loan Policy T-2 .

 

P-13.  Truth-In-Lending

Please refer to Procedural Rule P-13 on the TDI website. 

Comment: Paragraph 5 of the Exclusions from Coverage of the Mortgagee Policy excludes liability because of "invalidity or unenforceability of the lien of the insured mortgage or claim thereof, which arises out of the transaction evidenced by the insured mortgage, and is based upon insuring or consumer credit protection or truth-in-lending law." The Mortgagee Policy does not insure against recision under Truth-in-Lending. The Insured Closing Service Letter does not indemnify against "consumer credit protection "laws.

 

See Also:	3.28 Commitments
	3.36 Condemnations
Exceptions:	None
Bulletins:	TX000030 New Rules and Forms; Effective August 1, 1995.
Forms:	TX Owner Title Policy Commitment to Texas Department of Transportation T-20 .

 

P-14.  Owner Title Policy Commitment to Texas Department of Transportation

Please refer to Procedural Rule P-14 on the TDI website. 

Comment: The Company may charge premium only for commitments issued to the Texas Department of Transportation or to the FDIC (if no sale is pending) (Rules P-15, R-25). The $200 premium for the commitment issued to the Texas Department of Transportation shall be applied as a credit on a policy issued within three years after the commitment if issued by the same title insurer.

 

See Also:	3.28 Commitments
Exceptions:	None
Bulletins:	TX000015 New Forms Effective January 1, 1993
	TX000021 New Texas Legislation
	NL000052 Federal Update
Forms:	TX Standard Commitment Transmittal Letter 1992
	TX Commitment T-7

 

P-15. Commitment for Title Insurance to or for the Benefit of the Federal Deposit Insurance Corporation, Office of Thrift Supervision or Resolution Trust Corporation

Please refer to Procedural Rule P-15 on the TDI website. 

Comment: This rule requires a premium of $390 to be paid by the FDIC if there is no proposed buyer. This rule does not allow a credit if a policy is subsequently issued to the FDIC or its purchaser. This rule does not apply if the FDIC has a contract to sell the land or if the commitment is issued at an auction. The RTC ceased to function January 1, 1996. It was replaced by the FDIC as receiver conservator as to assets held by the RTC in its corporate capacity. Legislation passed in 1993 allows recordation of affidavits or memoranda to evidence transfer of financial institution assets.

 

See Also:	12.26 Loan Policies
Exceptions:	None
Bulletins:	TX000015 New Forms Effective January 1, 1993.
	TX000079 New Forms and Rules; Commissioners Order for 2004 Hearing
Forms:	TX Loan Title Policy Binder on Interim Construction Loan T-13
	TX Loan Title Policy Binder on Interim Construction Loan Schedule A T-13
	TX Loan Title Policy Binder on Interim Construction Loan Schedule B T-13
	TX Loan Title Policy Binder on Interim Construction Loan Schedule C T-13

 

P-16. Loan Title Policy Binder on Interim Construction Loan (Interim Binder)

Please refer to Procedural Rule P-16 on the TDI website. 

Comment: The rule does not prohibit issuance of multiple binders. For instance, the Modification Endorsement (T-38) or Assignment Endorsement may not be issued to the Binder, but a new Binder (describing the modification or assignment) may be issued during construction. There is some difference of opinion over whether development loans may be covered by a Binder because of the requirement that there be "immediate construction of improvements." Bulletin No. 136 (May 2, 1972) by the State Board of Insurance is critical of issuance of a Binder on a development loan. Please call our underwriting personnel if you are requested to issue a Binder in such case. The Binder is required to except to subordinate liens in Schedule B - Part 2, but the Binder may insure that the liens are subordinate. The Binder does not provide coverage as to access and does not promise to insure priority of the Deed of Trust over mechanic's liens. The Binder may be amended by the rollback tax deletion, insurance that taxes are not yet due and payable, down date endorsements, extension endorsements, and amendment of the area and boundaries exception. Other endorsements are not available.

 

 

 

See Also:	None
Exceptions:	None
Bulletins:	TX000030 New Rules and Forms; Effective August 1, 1995.
Forms:	None

 

P-17.  Electronically Produced Forms
Please refer to Procedural Rule P-17 on the TDI website. 

Comment: This rule allows electronic production of endorsements. You must contact the Company and receive a block of assigned endorsement numbers if you issue endorsements electronically. This rule does not prohibit electronic production of other forms, such as policy schedules and commitments.

(c)  Directly Issued Policies

This rule shall not affect the requirement for countersignature of a Directly Issued Policy pursuant to Procedural Rule P-31, which policy may be computer generated or electronically produced.

(d)  Consumer Protection

The Company must comply with the provisions of the Electronic Signatures in Global and National Commerce Act, including the requirements for Consumer Disclosures set forth in Section 101 (c) of said act, and the Uniform Electronic Transactions Act, Texas Business and Commerce Code, Chapter 43, where applicable.

(e)  Electronic Safeguards

Information that is generated, scanned, or otherwise stored electronically must accurately reflect the information set forth in the document or record as of the time it was first generated in its final form and must remain unaltered and accessible for later reference and audit

(f)  Document Retention

This rule shall not affect the requirements of document retention pursuant to Article 9.34, Texas Insurance Code and the rules promulgated thereunder, except that documents or records which are initially computer generated or electronically produced in conformity with this rule may be retained in that medium.

 

See Also:	3.28 Commitments
	6.26 Foreclosures - Deed Of Trust
Exceptions:	None
Bulletins:	TX000009 House Bill 2
	TX000012 New TREC Contracts
	TX000015 New Forms Effective January 1, 1993
	TX000028 Disclosures: Texas Residential Owner Policy of Title Insurance
	TX000032 1995 Texas Legislation
	TX000044 Commissioner's Order for 1996 Rate Hearing.
Forms:	TX Title Company Disclosure for Residential Closings 1995
	TX Commitment T-7
	TX Limited Pre-Foreclosure Policy T-98
	TX Standard Commitment Transmittal Letter 1992

 

P-18.  Commitment for Title Insurance

Please refer to Procedural Rule P-18 on the TDI website. 

Comment: This rule requires delivery of a commitment (1) if the Company will issue an Owner Policy of any amount on residential real property (defined in Rule P-1u) or (2) if the Company will issue an Owner Policy of $300,000 or less on any type of land (e.g., residential, commercial, agricultural, unimproved) or (3) to any other proposed insured if that proposed insured requests a commitment.

You must deliver the commitment to the proposed insured purchaser, the proposed insured purchaser's authorized "agent," other person in fiduciary relationship with the proposed insured purchaser, or proposed insured purchaser's attorney. If those persons are not available, then delivery may be made to the person opening the order (typically the broker who represents the seller). It is common to mail a copy of the commitment directly to the proposed insured. The current TREC contract provides that "within twenty (20) days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance (the Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and related documents to Buyer at Buyer's address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery will be automatically extended up to fifteen (15) days. Buyer will have five (5) days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment." The contract also provides that the title policy shall be "subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions:

1. Restrictive covenants common to the platted subdivision in which the Property is located.
2. The standard printed exception for standby fees, taxes and assessments.
3. Liens created as part of the financing described in Paragraph 4.
4. Utilities easements created by the dedication deed of plat of the subdivision in which the Property is located.
5. Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing.
6. The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements.
7. The standard printed exception as to marital rights.
8. The standard printed exception as to waters, tidelands, beaches, streams, and related matters."

However, "Buyer may object to existing building and zoning ordinances and items 6(A)(1) through (8) above if Buyer determines that any such ordinance or item prohibits the following use or activity: (for example: swimming pool, construction of garage, current residential use and so on)."

In other circumstances where requested by the proposed insured, the title company must issue a commitment to that proposed insured unless the company is unwilling to insure.

The commitment is effective for 90 days.

The commitment provides that "our liability is only to you and others who are included in the definition of the Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on the Commitment to comply with its requirements or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, and Conditions and Stipulations, and Exclusions." A commitment is not a title report or opinion of title.

Article 9.55, Insurance Code, (Now 2704.051 Texas Insurance Code) provides that whenever improved residential real estate is sold and a mortgagee policy is issued, the title insurance company or title insurance agent issuing the mortgagee policy shall also issue an owner policy. This requirement may be rejected by a written acknowledgment and rejection by the purchaser.

There generally is no charge for a commitment (except the Texas Department of Transportation as provided in R-14 and R-23 and the FDIC where there is no contract as provided in P-15 and R-25). A "cancellation fee "to the customer is not authorized, as stated in Bulletin No. 133 (May 10, 1971) issued by the State Board of Insurance.

The Texas Deletion of Arbitration provision relates only to the Owner Policy (T-1) and Mortgagee Policy (T-2). It does not relate to the Residential Owner Policy (T-1R) or to a policy issued to an individual.

Insurers may not refuse to issue commitments based in geographic location of the land or disability of a party; but the commitment may make requirements relating to those issues. You may not issue a commitment if you are issuing a Limited Pre-Foreclosure Policy (T-40).

P-61, Timely Provision of Title Policies, states that title policies shall be provided and furnished to the insured within ninety (90) days after receipt by the title company, of proof of compliance with the company's Schedule C requirements.  Effective Nov. 1, 2005

 

 

See Also:	12.26 Loan Policies
	15.32 Pending Disbursement Clause .
Exceptions:	None
Bulletins:	None
Forms:	TX Revolving Credit Endorsement T-35

 

P-19. Pending Disbursements

Please refer to Procedural Rule P-19 on the TDI website.  

Comment: If the loan is not fully disbursed at the time of the issuance of the policy, the policy must contain a pending disbursement clause (unless the loan is a revolving credit loan and the Form T-35 Revolving Credit Endorsement is issued). After full disbursement, the clause may be deleted. The Rules do not provide for a down date endorsement at the time of disbursement unless the loan is made for construction. If the loan is made for construction, the mechanic's lien exception of Rule P-8 also must be added.

 

See Also:	12.26 Loan Policies
	19.04 Taxes And Assessments
Exceptions:	None
Bulletins:	TX000015 New Forms Effective January 1, 1993
	TX000032 1995 Texas Legislation
	TX000033 Rollback Taxes
	TX000035 Tax Abatement (Chapter 312, Texas Tax Code)
Forms:	TX Tax Deletion Endorsement T-30
	TX Blank Endorsement T-3

 

P-20. Standard Exception Relating to Taxes

Please refer to Procedural Rule P-20 on the TDI website. 

 

 

See Also:	3.28 Commitments
Exceptions:	None
Bulletins:	TX000009 House Bill 2
	TX000014 New Rules Effective October 30, 1992
	TX000044 Commissioner's Order for 1996 Rate Hearing
Forms:	TX Commitment T-7
	TX Limited Pre-Foreclosure Policy T-98

 

P-21. Contents of Schedule D to Commitment for Title Insurance

Please refer to Procedural Rule P-21 on the TDI website.

Comment: This Rule requires disclosure of two tiers of ownership of the title insurance agent and disclosure of payment of premium. The disclosure of ownership of the title insurance agent applies to any title insurance agent that will receive a portion of the premium, whether receiving the premium for search examination or for closing the transaction. Article 9.38(c) of the Insurance Code also requires disclosure of the ownership of the title insurance agent. The Limited Pre-Foreclosure Mortgagee Policy (T-40) must include a Schedule D disclosure.

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	TX Verification of Services Rendered T-00

 

P-22. Payment of a Fee for Examination and/or Closing

Please refer to Procedural Rule P-22 on the TDI website. 

Comment: Article 9.30 of the Texas Insurance Code prohibits payment of a portion of the premium to an out-of-state title insurance agent (not licensed in Texas) for closing the transaction. Payments may be made to a licensed Texas attorney for examination or closing as long as the payment does not exceed a reasonable charge. Payments to a title insurance agent may not exceed percentages of premium or amounts set by the Board (pursuant to P-24) unless otherwise agreed in writing. An attorney who receives a portion of the premium must furnish a written schedule of charges at least thirty (30) days prior to rendering the service. The title company must receive invoices and T-00s from persons (including the title insurance agent) receiving a portion of the premium.

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-23. Division of Premiums between Title Insurance Agents and Title Insurance Companies.

Please refer to Procedural Rule P-23 on the TDI website. 

Comment: Articles 9.07 and 9.30B(1) of the Insurance Code authorize the Commissioner to promulgate the allowable split between the title insurance company and the title insurance agent.

 

See Also:	3.28 Commitments
Exceptions:	None
Bulletins:	TX000045 Title Search Requirement
	MU000018 Title Search Requirements
	SLS2009004 - Use of Starters for Title Search [Revised 3-23-09]
Forms:	None

 

P-24. Payment for Services Rendered by a Title Insurance Company, Title Insurance Agent, or Direct Operation to Another Title Insurance Company, Title Insurance Agent or Direct Operation

Please refer to Procedural Rule P-24 on the TDI website. 

Comment: Although this rule establishes maximum percentages of the premium after payment of the underwriter's portion of the premium, the rule states that "the Company providing such services and the Company paying for such services (may) enter into a prior written agreement specifying and agreeing to percentages different from those provided in this Rule." The amounts to be paid must be disclosed in Schedule D of the Commitment as required by Rule P-21. ?Starters "or prior policies or bases may be used in many circumstances and updated by the local title insurance agent.

 

 

See Also:	None
Exceptions:	None
Bulletins:	TX000045 Title Search Requirements
	MU000018 Title Search Requirements
	SLS2009004 Use of Starters for Title Search
Forms:	None

 

P-25. Reasonable Time for Furnishing Title Evidence.

Please refer to Procedural Rule P-25 on the TDI website. 

Comment: If title insurance agents will not furnish title evidence within the time stated in this rule, the title insurer may secure its title evidence by a courthouse examination pursuant to Article 9.34 of the Texas Insurance Code. A starter or prior policy may be acceptable in some circumstances if down dated.

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-26. Copies of Policies Provided to Agents. 

Please refer to Procedural Rule P-26 on the TDI website.

Comment: Article 9.34 of the Texas Insurance Code requires that the title insurance agent which provided title evidence on a direct (home office) issue be provided with complete copies of the title policies within a reasonable time determined by the Board. This rule establishes that reasonable time as 30 days after issuance of the policy.

 

See Also:	None
Exceptions:	None
Bulletins:	NL000031 Mortgage Company Funds.
Forms:	TX Immediately Available Funds Procedure Agreement T-37

 

P-27. Disbursement From Escrow or Trust Fund Accounts. 

Please refer to Procedural Rule P-27 on the TDI website. 

Comment: Article 9.39A prohibits disbursements by the title company until "good funds,? as defined in this rule, in an amount sufficient to fund all disbursements have been received. Uncertified checks may not exceed $1,500 in the aggregate; however, a title company is not required to accept such checks for that amount. Similarly, a title company may require that some certified or cashiers checks (particularly non-local checks) be collected before disbursements are made. Form T-37 (a three-party agreement between the disbursing title company, (federally insured) financial institution, and third party such as a mortgage company) must be signed by the issuing office (direct operation or title insurance agent) that disburses funds. Under the T-37 agreement, authorization by the financial institution to disburse will be evidenced on the check by funding and "transcode "numbers (one of which is furnished over the phone upon or after completion of the closing). Checks by local governments (other than cities or counties), such as municipal utility districts, are not "good funds "until collected. If the title company is concerned that a check may not be paid (such as where it is concerned about the financial institution), it may require wired or other collected funds. In order to explain the requirement of good funds, title companies often communicate this to brokers and also note the good funds requirement on the commitment. A purchaser's "management "or "investment account "check is not good funds until collected. Teller checks (e.g., credit union checks) are "good funds,? although the title company will want to be satisfied as to the credit union. It is the title insurance agent's responsibility to determine that funds constituting good funds under this rule can be collected.

B.  General Provisions

1.  Good funds in an amount equal to all disbursements must be received and deposited before any disbursement may be made. Partial disbursements, prior to the receipt and deposit of good funds, are not permitted. If a party to the transaction submits too much money, that overage which will not ultimately be a part of the transaction may be refunded at or prior to settlement.

2.  A record of all receipts reflecting the date on which the funds are actually received must be entered on the books of the trustee before any disbursements are made.

3.  The financial institution or branch of a financial institution in which the trust fund account is maintained must be located within the geographic bounds of the State of Texas.

4.  Even though funds are defined as good funds in this Rule, a trustee is not required to disburse if reasonable business judgment would indicate that the funds may not be collected.

 5.  An Immediately Available Funds Procedure Agreement (Form T-37) must be fully executed by the Financial Institution, the Federally-insured Lender and the Title Company prior to issuance of checks intended to qualify pursuant to subparagraph A.1.j. of this rule. If the Federally-insured Lender has appointed an Agent and delegated to the Agent some of the duties and responsibilities of the Federally-insured Lender, the Title Company must use an Immediately Available Funds Procedure Agreement (Agent Designation for Federally-insured Lender) (Form T-37A) which must be fully executed by each of the four parties to the Agreement including the Agent for the Federally-insured Lender.

See Also:	None
Exceptions:	None
Bulletins:	TX000014 New Rules Effective October 30, 1992
Forms:	None

 

P-28.   Requirements for Continuing Education for Title Agents and Escrow Officers

Please refer to Procedural Rule P-28 on the TDI website.

 

 

See Also:	12.26 Loan Policies
	19.04 Taxes And Assessments
Exceptions:	None
Bulletins:	None
Forms:	TX Loan Title Policy Binder on Interim Construction Loan Schedule B T-13
	TX Loan Policy Schedule B T-2

 

P-29. (REPEALED 02/01/2010) Relating to Taxes Not Yet Due and Payable

Please refer to Procedural P-20.c.1 on the TDI website.

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-30. Guaranty Assessment Recoupment Charge.

Please refer to Procedural Rule P-30 on the TDI website. 

Comment: The Guarantee Assessment Recoupment Charge (GARC) ceased to be collected on transactions closed after December 31, 1991. The Policy Guarantee Fee (not to exceed $5) ceased to be collected on transactions closed after March 31, 1992.  It was reinstated in 2004, and was collected on owner title policies and mortgagee title policies, and not on binders. Article 9.48 of the Texas Insurance Code creates the Texas Title Insurance Guarantee Association. Covered claims are claims under a title policy of an insured not in excess of the policy amount or claims against trust funds or an escrow for which an impaired insurer is liable under an insured letter or against trust funds or an escrow account of an impaired title insurance agent. Claims for trust funds of an impaired title insurance agent due to shortages in trust funds must be paid from guarantee fees and not from assessments. A covered claim is limited to the lesser of $250,000 per claimant or $250,000 per policy. Covered claims do not include attorney's fees and expenses incurred before receivership of the title company or enhanced damages (arising out of Article 21.21 of the Insurance Code or the Deceptive Trade Practices Act.). The insured real property must be located within Texas.

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-31 Authorized Execution of Directly Issued Policies.

Please refer to Procedural P-31 on the TDI website.

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-32.  Document Retention.

Please refer to Procedural Rule P-32 on the TDI website. 

P-33.  Repealed

P-34. Repealed. 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-35. Prohibition Against Guaranties, Affirmations, Indemnifications, and Certifications

Please refer to Procedural Rule P-35 on the TDI website. 

 

See Also:	3.28 Commitments
Exceptions:	None
Bulletins:	TX000007 New Title Insurance Policies (effective October 1, 1991)
	TX000010 Waiver of Inspection and Disclosure to Owner
	TX000014 New Rules Effective October 30, 1992
	TX000015 New Forms Effective January 1, 1993
Forms:	TX Loan Policy T-2
	TX Owner Policy T-1
	TX Residential Owner Policy T-1R
	TX Waiver of Inspection and Disclosure to Owner 1993

 

P-36.  Arbitration Provisions

Please refer to Procedural Rule P-36 on the TDI website. 

Comment: The arbitration clause in the Texas Residential Owner Policy (Form T-1R) contains a nonbinding arbitration clause. The arbitration clause may not be deleted from the T-1R. The arbitration clause in the Owner Policy (T-1) and Mortgagee (T-2) contains an arbitration clause requiring binding arbitration at the request of either the insured or the insurer, if:

1. the policy does not exceed $1 million (if the policy is larger, arbitration may not be required);

2. the insured is not an individual (if the insured is a natural person, arbitration may not be required); or,

3. the arbitration clause is not deleted (by promulgated provision added to Schedule B) pursuant to request of the insured before the policy is issued. There is no charge to delete the arbitration clause.

Before the title company issues the Owner Policy (T-1) or Mortgagee Policy (T-2) it must deliver the Deletion of Arbitration Clause to the proposed insured (in the commitment or separately). If it does not do so, the title company must delete the arbitration clause. Rule P-18 requires delivery of a commitment upon request of the proposed insured and, in most circumstances, if an Owner Policy will be issued.

 

 

See Also:	1.08 Abutting Owners Rights of Access
	1.12 Access, Rights Of
	3.28 Commitment
	17.38 Residential Title Policies
Exceptions:	None
Bulletins:	TX000007 New Title Insurance Policies (effective October 1, 1991)
Forms:	TX Commitment T-7
	TX Loan Title Policy Binder on Interim Construction Loan Schedule C T-13
	TX Loan Policy T-2
	TX Owner Policy T-1
	TX Residential Owner Policy T-1R

 

P-37.  Lack of a Right of Access

Please refer to Procedural Rule P-37 on the TDI website. 

Comment: Those policies issued on or after October 1, 1991 contain an insuring provision against loss because of a right of access (unless an exception or exclusion applies). Access is defined in the Owner Policy (T-1) and Mortgagee Policy (T-2) as "legal right of access to the land and not the physical condition of access. The coverage provided as to access does not assure the adequacy of access for the use intended." Access insured in the Texas Residential Owner Policy is legal right of access. The additional chain charge ($270) may not be made for determining access (1) within a subdivision if the recorded plat is within one county, the plat is lawfully approved, and the road is dedicated or (2) owned by the owner of the proposed insured land at the time of the application. The title insurance agent must examine the title to access (for the benefit of the title insurance company) before insuring an access easement or right of access. The Commitment requires satisfactory evidence of right of access. This requirement can be deleted if already satisfied. The Binder does not commit to insure access.

 

See Also:	14.12 Owner Policies
	17.38 Residential Owner Title Policies .
Exceptions:	None
Bulletins:	TX000015 New Forms Effective January 1, 1993
	TX000032 1995 Texas Legislation.
Forms:	TX Owner Policy T-1
	TX Owner Policy Schedule A T-1
	TX Owner Policy Schedule B T-1
	TX Residential Owner Policy T-1R
	TX Residential Owner Policy Schedule A T-1R
	TX Residential Owner Policy Schedule B T-1R

 

P-38.  Residential Owner Policy of Title Insurance-One to-Four Family Residences

Please refer to Procedural Rule P-38 on the TDI website.

Comment: Rule P-1u defines "Residential Real Estate." Rule P-1bb defines "Owner Policy." Rule P-38 and Article 9.07 require issuance of the Texas Residential Owner Policy of Title Insurance (T-1R) on residential real estate if the insured is a natural person. If the insured is not a natural person (e.g., a corporation, partnership, or company), then the title company must issue the Owner Policy (T-1) on residential real estate. On property that is not "Residential Real Property "the title company must issue the Owner Policy (T-1). The Texas Residential Owner Policy of Title Insurance (T-1R) may be issued to a natural person prior to construction of improvements if the policy includes the cost of improvements.

 

See Also:	18.40 Surveys
Exceptions:	None
Bulletins:	TX000013 Express Insurance: October 30, 1992.
	TX2024003 Underwriting – Lender's Closing Instructions Requirement to Delete the Creditors’ Rights Exclusion
	TX2018007 GENERAL – General Issues
Forms:	None

 

P-39.  Express Insurance

Please refer to Procedural Rule P-39 on the TDI website. 

Comment: The Company may provide affirmative insurance against encroachments and other survey matters. To provide the coverage, the Company must amend its area and boundary exception. To amend the area and boundary exception, the Company must receive an acceptable survey and (on the Owner Policy) must be paid 15 percent of the basic premium for a T-1 or 5% of the basic premium for a T-1R, with a minimum premium of $20.  If the Company's guidelines are met, the Company then may except to the encroachment and add the following:

"Encroachment of ________ into __________. Company insures the insured against loss, if any, sustained by the insured under the terms of this Policy by reason of a final, nonappealable judgment of a court of competent jurisdiction that orders the removal of this improvement because it encroaches over or into __________. Company agrees to provide defense to the insured in accordance with the terms of this Policy if suit is brought against the insured to require the removal of this improvement because it encroaches as herein stated."

 

Comment: Under this rule, the Company may except to a "defect in title" and then provide affirmative insurance against that defect.

For example, if a Texas underwriter considers the risk insurable, it may except to a lis pendens and underlying suit, gap in the chain of title, or other adverse claim and then state:

(describe defect). Company insures the insured against loss, if any, sustained by the insured under the terms of this Policy by reason of a final, nonappealable judgment of a court of competent jurisdiction that divests the insured of its interest as insured because of this right, claim, or interest. Company agrees to provide defense to the insured in accordance with the terms of this Policy if suit is brought against the insured to divest the insured of its interest as insured because of this right, claim or interest."

 

If a Texas underwriter consents, the Company may provide another form of affirmative insurance against certain encumbrances on the title (such as blanket easements not in use on the land) by excepting to the matter and then adding the following:

(describe defect). Company insures the insured against loss, if any, sustained by the insured under the terms of this Policy by reason of the enforcement of said rights as to the land. Company agrees to provide defense to the insured in accordance with the terms of this Policy if suit is brought against the insured to enforce said rights as to the land."

This latter form of affirmative insurance might be given in the following circumstances after specific approval by a Texas underwriter:

1. (undefined or unlocated) easements not in use or evidenced by lines located on other property.

2. Mineral interests or mineral leases that may have expired;

3. Rights to use the surface of the land for extraction of development of minerals excepted by separate exception.

4. Restrictions that may be unenforceable because of widespread violation or that may have been amended by consent of owners.

Example: The Company is satisfied that surface rights have been waived by all owners of mineral interests. It may then except to the minerals and, in a separate exception, state the following:

"Those rights to use the surface of the land for extraction or development of minerals (hereinafter "said rights) set forth in exceptions _____ above. Company insures the insured against loss, if any, sustained under the terms of this Policy by reason of the enforcement of said rights as to the land. Company agrees to provide defense to the Insured in accordance with the terms of this Policy if suit is brought against the Insured to enforce said rights as to the lands."

According to Staff Letter dated November 26, 1997, the promulgated language may not be modified to acknowledge that title was acquired by limitations and that the company is not obligated to file suit.

 

Comment: If the Company intentionally provides insurance against outstanding enforceable recorded liens, it must comply with Rule P-11. This rule relates to "insuring around." The insured must consent in writing to this procedure.

The Company may, if it insures against a lien under P-11 after approval by a Texas underwriter, omit exception to the lien or provide express insurance in one of three ways:

1. It may except to the lien and then state: Exception number ___ is hereby deleted. Company provides insurance as to said lien in accordance with the terms of this Policy." This affirmative insurance simply deletes the exception to the lien.

2. If the lien (such as a mechanic's lien) must be foreclosed judicially and a Texas underwriter agrees to insure, the Company may except to the lien and then state:

(describe lien) Company insures the insured against loss, if any, sustained by the insured under the terms of this Policy by reason of a final, nonappealable judgment of a court of competent jurisdiction that orders foreclosure of said lien on the land. Company agrees to provide defense to the insured in accordance with the terms of this Policy if suit is brought against the insured to foreclose said lien on the land."

3. If the lien (such as an abstract of judgment, state tax lien, federal tax lien, or deed of trust) may be foreclosed nonjudicially and a Texas underwriter agrees to insure, the Company may except to the lien and then state:

(describe lien). Company insures the insured against loss, if any, sustained by the insured under the terms of this Policy by reason of a foreclosure of said lien on the land. Company agrees to provide defense to the insured in accordance with the terms of this Policy if suit is brought against the insured to foreclose said lien on the land and to take action in accordance with the terms of the Policy if the holder of the lien commences a foreclosure action based on said lien."

Procedural Rule P-39 is not mandatory.

Only express insurance authorized by the promulgated rules may be used in Texas. A number of Bulletins issued by the Department of Insurance have prohibited other forms of affirmative coverage:

1. Bulletin No. 140 (March 29, 1973): Unless affirmative insurance or certification (such as insurance that the mortgage is a valid first mortgage lien in accordance with New Jersey law) is expressly authorized, it may not be provided.

2. Bulletin No. 138 (February 21, 1973): A company may not insure as of some future date an estate to be acquired in the future. (When the lessee-optionee obtains title upon the exercise of the option, the lessee will have fee simple title.")

Although Rule P-39 establishes the most commonly known express or affirmative insurance, the following rules also authorize express insurance:

1. Rule P-8 (insurance against recorded mechanic's liens);

2. Rule P-11b(8) (insurance that a lien or lease is subordinate to lien of insured mortgage);

3. Rule P-20C (insurance that standby fees, taxes, and assessments by taxing authorities are not yet due and payable).

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-40.  Standards for Reserve Setting and Reviewing

Please refer to Procedural Rule P-40 on the TDI website. 

Comment: Article 9.17 of the Texas Insurance Code requires the title insurance company to maintain reserves against unpaid losses and loss expense for costs of defense of the insured and other costs expected to be paid to other parties in the defense, settlement, or processing of the title policy claim. Section II H of "Claims Handling Principles and Procedures" requires compliance with this rule after acceptance or conditional acceptance of a title policy claim.

P-41. Reserved for Future Use. This Rule has been reserved for future use.

P-42. Reserved for Future Use. This Rule has been reserved for future use.

 

See Also:	6.26 Foreclosures - Deed of Trust
Exceptions:	None
Bulletins:	TX000044 Commissioner's Order for 1996 Rate Hearing.
Forms:	TX Limited Pre-Foreclosure Policy T-98
	TX Limited Pre-Foreclosure Policy Down Date Endorsement T-99.

 

P-43.  Limited Pre-Foreclosure Policy (T-98) and Limited Pre-Foreclosure Policy Downdate Endorsement (T-99)

Please refer to Procedural Rule P-43 on the TDI website. 

Comment: The Limited Pre-Foreclosure Policy (T-98) provides insurance as to record matters recorded subsequent to the foreclosing mortgage and as to general liens (such as judgment and tax liens) against the mortgagor and successors, and as to standby fees, taxes and assessments. The Policy may be issued to the mortgagee, an assignee, a loan servicer, an attorney, a trustee (or substitute trustee). The Policy may be issued to a lender, which was issued a Mortgagee Policy. You may assume an institutional lender previously received a mortgagee policy (T-2). The Policy may be issued for the value of the land or amount owed; you may assume the requested policy amount is the value of the land for issuance of this policy. The premium is 40% of the Basic Rate, but not less than $237 pursuant to Rule R-26. No credit is available because of issuance of a prior mortgagee policy or in connection with a later policy.

See Also:	8.08 Homestead
	8.02 Home Equity Loans
Exceptions:	None
Bulletins:	TX000037 Home Equity Constitutional Amendment (HJR 31, Proposition 8);
	TX000040 Home Equity Mortgages; Constitutional Amendment (HJR 31; Proposition 8) (Effective January 1, 1998)
	TX000043 Current Home Equity Questions.
	TX000047 Title Insurance Coverage for Texas 50(a)(6) Mortgages, Fannie Mae LL-5-98, Dated 12/04/98
	TX000049 Orders on Home Equity Endorsement (T-42, T-42.1) Effective November 12, 1998
	TX000052 1999 Constitutional Amendments: Homestead; Reverse Mortgages; and Conversion of Separate Property
	TX000070 Home Equity Forms
	TX000076 2005 Texas Legislation
	TX2007003 2007 Texas Constitutional Amendment regarding Home Equity Loans
	TX2010011 Home Owner Association Dues and Home Equity and Reverse Mortgages
	TX2013004 Underwriting – Powers of Attorney in HEL transactions
	TX2016003 Underwriting – Home Equity Loan Disclosure after TRID
	TX2017009 Underwriting – SJR 60 Home Equity Loan Changes Effective January 1, 2018
	TX2020005 Underwriting – Use of RON in Home Equity Transactions
Forms:	Texas Home Equity Loan Refinancing Affidavit (1-1-2018)
	TX Affidavit Regarding Dairy Production (Home Equity Transactions) 1
	TX Equity Loan Mortgage Endorsement T-42

 

P-44.  Equity Loan Mortgage Endorsement (T-42)

Please refer to Procedural Rule P-44 on the TDI website. 

Comment: The Equity Loan Mortgage Endorsement (T-42) must be issued on a Mortgagee Policy (T-2) insuring a home equity mortgage. There is no charge for this endorsement. The coverages of paragraph 2 of the endorsement relate to: (a) joinder of all owners and spouses; (b) no other home equity mortgages on the land; (c) no prior home equity mortgages on the land closed within a year; and, (d) disclosure in the mortgage that it is a home equity mortgage.

 

See Also:	8.08 Homestead
	8.02.8 Home Equity Loans – Texas Reverse Mortgage Endorsement T-43
Exceptions:	None
Bulletins:	TX000039 Reverse Mortgages; Constitutional Amendment (HJR 31; Proposition 8)  (Effective January 1, 1998).
	TX000037 Home Equity Constitutional Amendment (HJR 31, Proposition 8)
	TX000052 1999 Constitutional Amendments: Homestead; Reverse Mortgages; and Conversion of Separate Property
	TX000056 New Title Insurance Rules: Premium Split, Refinances and Reverse Mortgages
	TX000057 Residential Refinances
	TX000067 2003 Legislation
	TX000076 2005 Texas Legislation
	TX000080 Reverse Mortgage Endorsement (T-43)
	TX2010011 Home Owner Association Dues and Home Equity and Reverse Mortgage
	TX2014002 Underwriting – Supreme Court of Texas Order Approving Forms for Expedited Foreclosure Proceedings (Misc. Docket No. 13-9171)
	TX2014004 Underwriting – Reverse Mortgages used to acquire a homestead
	TX2017009 Underwriting – SJR 60 Home Equity Loan Changes Effective January 1, 2018
Forms:	TX Affidavit for Reverse Mortgages 1
	TX Reverse Mortgage Endorsement T-43

 

P-45  Texas Reverse Mortgage Endorsement (T-43) 

Please refer to Procedural Rule P-45 on the TDI website.

Comment: This endorsement must be attached to a Loan Policy (T-2) insuring a reverse mortgage on a homestead. Under the Texas Constitution, a reverse mortgage may be made if one of the spouses is over 62. There is no charge for this endorsement.

 

See Also:	T-44 Guideline - Texas Residential Limited Coverage Junior Mortgagee Policy Combined Schedule
	T-45 Guideline - Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement
	T-46 Guideline - Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement
Exceptions:	None
Bulletins:	None
Forms:	Form T-45: Texas Residential Limited Coverage Junior Loan Policy Down Date Endorsement
	Form T-44: Texas Residential Limited Coverage Junior Mortgagee Policy Combined Schedule
	Form T-46: Texas Residential Limited Coverage Junior Loan Policy Home Equity Line of Credit/Variable Rate Endorsement

 

P-46. Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) and Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) and Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) and Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement

Please refer to Procedural Rule P-46 on the TDI website. 

See Also:	T-42.1 Guideline - TX Supplemental Coverage Equity Loan Mortgage Endorsement
Exceptions:	None
Bulletins:	None
Forms:	TX Supplemental Coverage Equity Loan Mortgage Affidavit Checklist for T-42.1  Endorsement 1 ;

 

P-47 Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1)

Please refer to Procedural Rule P-47 on the TDI website. 

Comment: This endorsement was requested by Fannie Mae and Freddie Mac for Mortgagee Policies on loans they buy. This endorsement may be issued on closings on or after Nov. 12, 1998. This endorsement provides the following coverages:

Execution of the mortgage and note before the specific date in the closing instructions. [Paragraph 1(a)]

Disbursement by the title company before the fourth calendar day after closing. [Paragraph 1(b)]

Execution of an acknowledgment of election not to rescind in the presence of the escrow officer on the date of execution of the note and mortgage. [Paragraph 1(c)]

The title company gave copies of the documents executed in its office to each owner. [Paragraph 1(d)]

Collection and disbursement by the title company of fees not shown on the final settlement statement sent to the lender prior to execution of the mortgage and note. [Paragraph 1(e)]

Blanks in the mortgage, note, acknowledgment of fair market value, affidavit of compliance, or documents prepared by the title company. [Paragraph 1(f)]

Failure of the acknowledgment of fair market value to have a purported evaluation or appraisal attached when executed by the owner. [Paragraph 1(g)]

The acknowledgment of fair market value is executed by the owner when the mortgage and note are executed. [Paragraph 1(h)]

Part of the land not being homestead. [Paragraph 1(i)]

Home equity mortgages on other homestead land of the owner in the same county (or an adjoining county, if the city is in multiple counties). [Paragraph 1(j)] We have printed a separate form for use in cities located in more than one county.

Home equity mortgages on other homestead of the owner in the same county (or an adjoining county, if the city is in multiple counties) closed within the last year. [Paragraph 1(k)] We have printed a separate form for use in cities located in more than one county.

 

ISSUE T-42. Always attach the T-42 Endorsement to your Mortgagee Policy, if you issue the T-42.1 Endorsement. Comply with our underwriting to issue the T-42 Endorsement.

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-48 Dates On and After January 1, 2000

Please refer to Procedural Rule P-48 on the TDI website. 

 

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-49. Annual Audit

Please refer to Procedural Rule P-49 on the TDI website. 

 

See Also:	T-19 Guideline - TX Restrictions, Encroachments, Minerals Endorsement
	T-19.1 Guideline - (Restrictions, Encroachments, and Mineral Endorsement-Land; Owner's)
Exceptions:	None
Bulletins:	TX2009007 - Oil and Gas and Other Minerals Supplement
	TX2009008 - Increase in Premium for T-19 and T-19.1
	TX2014006 - RATES AND/OR FORMS UPDATE - T-19 Series Endorsements (T-19.1 for Owner’s Policies and T-19 for Loan Policies after 2014 revisions)
Forms:	TX Restrictions, Encroachments, Minerals Endorsement T-19
	TX Restrictions, Encroachments, Minerals Endorsements - Owner Policy (T-19.1)

 

P-50. Restrictions, Encroachments, Minerals Endorsement (T-19) and Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1)

Please refer to Procedural Rule P-50 on the TDI website. 

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-50.1 Minerals and Surface Damage Endorsement (Form T-19.2), and Minerals and Surface Damage Endorsement (Form T-19.3)

Please refer to Procedural Rule P-50.1 on the TDI website. 

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-50.2. Minerals and Surface Damage Endorsement (Form T-19.4)

Please refer to Procedural Rule P-50.2 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	TX000061 Commissioner's Order for 2002 Hearing
	TX000063 Texas Supplement to National Legal Bulletin NL000128 Electronic Production of Short Form Mortgagee Policies
Forms:	Texas Short Form Residential Mortgagee Policy of Title Insurance and Addendum (T-2R)

 

P-51.  Texas Short Form Residential Mortgagee Policy of Title Insurance (T-2R)

Please refer to Procedural Rule P-51 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	TX000061 Commissioner's Order for 2002 Hearing
Forms:	None

 

P-52.  Delivery of Pro Forma Policies and Promulgated Forms

Please refer to Procedural Rule P-52 on the TDI website. 

 

 

See Also:	None
Exceptions:	None
Bulletins:	TX 000069 Procedural Rule P-53 Rebates and Discounts Prohibited
	TX 000076 2005 Texas Legislation
Forms:	None

 

P-53.  Rebates and Discounts Prohibited

Please refer to Procedural Rule P-53 on the TDI website. 

See Also:	17.02 Rate Rules and Definitions
	T-23 Guidelines
Exceptions:	None
Bulletins:	None
Forms:	TX Loan Policy T-2
	TX Owner Policy T-1
	TX Access Endorsement T-23

 

P-54. Access Endorsemen (T-23)

Please refer to Procedural Rule P-54 on the TDI website. 

 

See Also:	17.02 Rate Rules and Definitions
	T-24 Guidelines
	T-24.1 Guidelines
Exceptions:	None
Bulletins:	None
Forms:	TX Non-Imputation Endorsement T-24
	T-24.1 TX Non-Imputation Endorsement (Mezzanine Financing)
	TX Owner Policy T-1

 

P-55. Non Imputation Endorsement (T-24, T-24.1) 

Please refer to Procedural Rule P-55 on the TDI website. 

 

 

See Also:	17.02 Rate Rules and Definitions
	T-25 Guidelines
	T-25.1 Guidelines
Exceptions:	None
Bulletins:	None
Forms:	TX Contiguity Endorsement T-25
	TX Contiguity Endorsement T-25.1
	TX Owner Policy T-1
	TX Loan Policy T-2

 

P-56. Contiguity Endorsement (T-25, T-25.1)

Please refer to Procedural Rule P-56 on the TDI website. 

 

 

See Also:	T-26 Guidelines
Exceptions:	None
Bulletins:	TX000071 New Forms and Rules; Commissioner's Order for 2002 Hearing
	TX2013008
Forms:	TX Additional Insured Endorsement T-26

 

P-57.  Additional Insured Endorsement (Form T-26)

Please refer to Procedural Rule P-57 on the TDI website. 

Comment:

This endorsement was  initially intended to be used in estate planning situations where title in individuals has been conveyed to a living trust, acquisition of interest under an agreement existing at the original policy date or family partnership or family corporation, limited liability company. It is also frequently used when there are changes in a membership of a limited liability company.  

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-58.  Report on Directly Issued Policy

Please refer to Procedural Rule P-58 on the TDI website. 

 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-59.  Reconciliation of References to Provisions of the Insurance Code of 1951 to Provisions of the Texas Insurance Code as Recodified

Please refer to Procedural Rule P-59 on the TDI website. 

 

 

See Also:	T-27 Guideline
Exceptions:	None
Bulletins:	TX2011007 2011 Legislation affecting real estate generally
	TX000079 New forms and Rules; Commissioner's Order for 2004 Hearing
Forms:	TX Assignment of Rents/Leases Endorsement T-27

 

P-60.  Assignment of Rents/Leases Endorsement (T-27)

Please refer to Procedural Rule P-60 on the TDI website. 

Comment:

This endorsement is to be issued contemporaneously with an loan policy and insures against: (a) any defect in the execution of an assignment of rents or leases document, or (b) any assignment of the lessor's interest in any lease or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument referred to in Schedule B. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-61. Timely Provision of Title Policies

Please refer to Procedural Rule P-61 on the TDI website. 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-62.  Licensing and Location of Title Agents and Direct Operations

Please refer to Procedural Rule P-62 on the TDI website. 

 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-63 - Policy Issued to Qualified Intermediary under IRS Code 1031.

Please refer to Procedural Rule P-63 on the TDI website.

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-64. Subordinate Liens and Leases – Pursuant to Rule P-11.b.(8)

Please refer to Procedural Rule P-64 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-65. Issuance of Owner Policy Required in Connection with Issuance of Mortgagee Policy.

Please refer to Procedural Rule P-65 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	TX2008001 2006 Rate hearing results Commissioner's Order 08-0187
	TX2008004 - Commissioner's Order in 2006 Rate Case
	TX2010004 - 2008 Rules Hearing Results Effective February 1, 2010; 2008 Rate Hearing Results effective January 1, 2011 [Revised 12-15-10]
	TX2019008 - LEGISLATIVE UPDATE - 2019 Legislative Update - 1 of 2
Forms:	None

 

 

P-66.   Determination of Amount of Insurance (Policy Amount)

Please refer to Procedural Rule P-66 on the TDI website.

Comment:

This rule covers various types of loan and owner’s policies.

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-67. Insured Closing and Settlement Letters (T-50)

Please refer to Procedural Rule P-67 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-68 Consumer Notice

Please refer to Procedural Rule P-68 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-69. Issuance of Insured Closing Letters (T-50 or T-51)

Please refer to Procedural Rule P-69 on the TDI website.

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-70. Cancellation Fees; Fees for Services Rendered

Please refer to Procedural Rule P-70 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-71. Texas Limited Coverage Residential Chain of Title Policy

Please refer to Procedural Rule P-71 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-72. Severable Improvements Endorsement (Form T-54) 

Please refer to Procedural Rule P-72 on the TDI website. 

See Also:	None
Exceptions:	None
Bulletins:	None
Forms:	None

 

P-73. Closing Disclosure and Texas Disclosure (Form T-64)

Please refer to Procedural Rule P-73 on the TDI website.