June 16, 2008
Basic Manual Correction to P-1.f
It has come to our attention that the recent TLTA Basic Manual update includes a version of P-1.f in Section IV that is in conflict with what the Texas Department of Insurance (TDI) has published. This conflict occurred because different P-1.f language was adopted in two separate agenda items. We have clarified with TDI which version they intend to follow.
Click here to view the revised adopted version of P-1.f on the TLTA Web site.
If you are a subscriber to the Basic Manual updates or if you purchased the May 1, 2008 updates, a new page including the revised language for P-1.f will be included in your July 1, 2008 updates, which are due to be printed and shipped prior to July 1, 2008.
TLTA endeavors to have the most up-to-date Basic Manual information available on the Web site and via printed updates. We apologize for any disruption or inconvenience this may have caused.
For further clarification, a redlined version of P-1.f is as follows:
Closing the Transaction
---The investigation made on behalf of a title insurance company, title insurance agent or direct operation before the actual issuance of the title policy to determine proper execution, acknowledgment and delivery of all conveyances, mortgage papers, and other title instruments which may be necessary to the consummation of the transaction and includes the determination that all delinquent taxes are paid, all current taxes, based on the latest available information, have been properly prorated between the purchaser and seller in the case of an Owner Policy, the consideration has been passed, all proceeds have been properly disbursed, a final search of the title has been made, and all necessary papers have been filed for record. The foregoing definition does not prevent voluntary assistance rendered by the Company as a convenience to a party to the transaction, although not necessary to the closing of the transaction and issuance of the policy (such as receiving and disbursing Insurance, money for the mortgagee, furnishing copies of restrictions, prorating insurance and rents, etc.), so long as the same does not violate the provisions of Chapter 2502, Texas Code prohibiting rebates, discounts, etc. The Company may specify the requirements necessary for the issuance of title insurance, but it is the responsibility of the applicant for the insurance to meet such requirements. It is not the responsibility of the Company to cure defects of title, nor to perform escrow or other services extraneous to closing the transaction. The premium does not include the cost of legal services performed for the benefit of anyone other than the Company. Legal services as here referred to, are those constituting the practice of law, and shall, accordingly, be performed only by Attorneys at Law, licensed to practice law in Texas.