T-3 Guideline – Instruction II

Explanation:

The Form T-3 Endorsement is a general purpose endorsement that is used in several settings.  These settings are found in the Endorsement Instructions found in the Basic Manual for the Writing of Title Insurance in the State of Texas (Basic Manual) promulgated by the Texas Insurance Department.  You should utilize the specific provisions below relative to your transaction and request.

The T-3 Endorsement Instruction II is as follows: 

II. USE UPON COMPLETION OF IMPROVEMENTS.

Upon the completion of improvements and after compliance with Procedural Rule P-8.a.(2) or b.(2), Procedural Rule P-50, and Rate Rules R-16 and R-29, if applicable, the following language may be inserted into the T-3 Endorsement:

A.     In Owner 's Policies - Rule P-8.a.(2) and R-16

1.       "Exceptions No.___________________ in said Owner 's Policy are hereby deleted."

2.      Only in the event there is a specific request that the exception as to area and boundaries, etc. be amended and when a current, acceptable survey, showing all completed improvements, is furnished to the Company, the following language contained in the applicable subdivision below may be inserted and shown as No. 2 of the T-3 Endorsement form. In the event no amendment is to take place, No. 2 should read "Survey coverage not requested." The types of exception and the correct wording to be inserted are as follows:

a.      Area and boundaries exception previously amended -

"The company affirms the amendment of the exception as to area and boundaries of the above numbered policy, such amendment to be effective as of the date of this Endorsement."

b.    Area and boundaries exception NOT previously amended -

"Exception as to area and boundaries of the above numbered policy is hereby eliminated save and except any shortages in area."

c.     In the event a review of the survey shows additional matters to be excepted from coverage -

"The following exceptions are added to Schedule B of the policy: (List specific exceptions regarding matters shown by the survey)."

3.     Only in the event there is a specific request that the T-19.1 Endorsement be issued and when the Company's underwriting requirements have been met, the following language contained in the applicable subdivision below may be inserted and shown as No. 3 of the T-3 Endorsement form. In the event the endorsement is not to be issued or the coverage affirmed, No. 3 should read "T-19.1 not requested." The correct wording to be inserted is as follows:

a.     T-19.1 Endorsement previously issued -

"The company affirms the coverage provided in the T-19.1 Endorsement issued in connection with the above numbered policy, such coverage to be effective as of the date of this Endorsement."

"The following subparagraph(s) of this endorsement are deleted: ___________________"

b.    T-19.1 Endorsement NOT previously issued -

"T-19.1 Endorsement in the form attached hereto is made a part of the above numbered policy."

"The following subparagraph(s) of this endorsement are deleted: ___________________"

B.    In Loan Policies - Rule P-8.b.(2)

1.      "Exception No. ____________ of Schedule B and the Pending Disbursement Clause in said policy are hereby deleted."

2.     "Said policy is hereby amended so that its coverage as to all loss or damage against mechanics' and materialmen's liens shall related to the date of this Endorsement instead of the date of said policy."

3.     Only in the event there is a specific request that the exception as to area and boundaries, etc., be amended and when a current, acceptable survey, showing all completed improvements is furnished to the Company, the following language contained in the applicable subdivision below may be inserted and shown as No. 3 of the T-3 Endorsement form. In the event no amendment is to take place, No. 3 should read "No survey coverage requested." The types of exceptions and the correct wording to be inserted are as follows:

a.     Area and boundaries exception previously amended -

"The Company affirms the amendment of the exception as to area and boundaries of the above numbered policy, such amendment to be effective as of the date of this Endorsement."

b.    Area and boundaries exception NOT previously amended -

"Exception as to area and boundaries of the above numbered policy is hereby eliminated save and except any shortages in the area."

c.     In the event a review of the survey shows additional matters to be excepted from coverage -

"The following exceptions are added to Schedule B of the policy: (List specific exceptions regarding matters shown by the survey)."

4.    Only in the event there is a specific request that the T-19 Endorsement be issued and when the Company's underwriting requirements have been met, the following language contained in the applicable subdivision below may be inserted and shown as No. 4 of the T-3 Endorsement form. In the event the endorsement is not to be issued or the coverage affirmed, No. 4 should read "T-19 not requested." The correct wording to be inserted is as follows:

a.     T-19 Endorsement previously issued -

"The Company affirms the coverage provided in the T-19 Endorsement issued in connection with the above numbered policy, such coverage to be effective as of the date of this Endorsement."

"The following subparagraph(s) of this endorsement are deleted: ___________________"

b.    T-19 Endorsement NOT previously issued -

"T-19 Endorsement in the form attached hereto is made a part of the above numbered policy."

"The following subparagraph(s) of this endorsement are deleted: ___________________"