TDI Adopts Updated T-51 Form
Purchaser/Seller Insured Closing Service Letter
Updated T-51: Maximum amount for covered claim under TTIGA statute increased from $250,000 to $500,000
Effective Date for Updated Form:
Feb. 1, 2021
Feb. 2, 2021
On Friday, Jan. 29, the Texas Department of Insurance announced
they have adopted an updated version of Form T-51 (Purchaser/Seller Insured Closing Service Letter).
Form T-51, which is part of the Basic Manual, is an insured closing letter that protects the buyer or seller if escrow funds are lost because of fraud or dishonesty by a title agent. Under Insurance Code §2702.002, Form T-51 can only be given if the sales price of real estate is more than the maximum amount for a covered claim under the Texas Title Insurance Guaranty Association Act (TTIGA Act).
The updated Form T-51 shows the threshold amount for a claim on the T-51 is now $500,000. The previous threshold was $250,000. The maximum amount of coverage by TTIGA was increased by the Texas Legislature when they passed HB 1614
during their 86th Session in 2019.
The passage of HB 1614 was part of the affirmative legislative agenda TLTA pursued and helped pass during the 86th Legislative Session.
If you have questions, please contact us