November 11, 2020
In This Issue:
- TLTA Advocacy Update
- FinCEN Reissues Real Estate Geographic Targeting Orders for 12 Metropolitan Areas, Including San Antonio, DFW
- TDI Proposes New Rules
- California Passes Measure to Revamp Consumer Privacy Law
TLTA Advocacy Update
TLTA | Nov. 10, 2020
TREC adopted termination option and option fee language at their meeting on Tuesday – There will not be permissive use of the new forms before effective date
In response to concerns raised by TLTA's Regulatory Committee in 2019, TLTA submitted a letter to the Texas Real Estate Commission's (TREC) Broker Lawyer Committee regarding proposed changes to the termination option and option fee language included in TREC contract forms. TLTA's recommended language regarding payment of earnest money and option fee to the escrow agent was accepted by the TREC Broker Lawyer Committee, and TREC adopted the committee's recommendations on Tuesday. The revisions will also move the termination option and option fee provisions from paragraph 23 to paragraph 5.
After the October Broker Lawyer Committee meeting, TREC identified two additional forms in which paragraph 23 is still referenced and non-substantive changes are required to change the paragraph references to new paragraph 5. There will be a special TREC meeting, probably in December, to make the technical changes required on the two ancillary forms that still reference Paragraph 23.
We do not know when the forms will become effective and available for use, but we anticipate it may be in March or April of 2021. We also anticipate there will not be permissive use of the forms before the effective date.
We will update you as we learn more about the effective date of the revised forms, and we will develop an educational tool to help you understand and utilize the forms before they are effective.
TLTA's Town Hall Insights Series featuring Texas Comptroller Glenn Hegar this Monday, Nov. 16, at 2 p.m.
The TLTA Town Hall Insights Series features the latest, timely info you need to navigate the unprecedented and challenging marketplace we're operating in. Texas Comptroller Glenn Hegar will be our first guest speaker this Monday, Nov. 16, at 2 p.m.
RSVP Now »
Submit a Question for Comptroller Hegar »
All virtual Town Hall sessions are available to all TLTA members free of charge.
FinCEN Reissues Real Estate Geographic Targeting Orders for 12 Metropolitan Areas, Including San Antonio, DFW
U.S. Treasury | Nov. 5, 2020
The Financial Crimes Enforcement Network (FinCEN) today announced the renewal of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. These renewed GTOs are identical to the May 2020 GTOs. The purchase amount threshold remains $300,000 for each covered metropolitan area. The terms of this Order are effective beginning November 6, 2020 and ending on May 4, 2021.
Today’s GTOs cover certain counties within the following major U.S. metropolitan areas: Boston; Chicago; Dallas-Fort Worth; Honolulu; Las Vegas; Los Angeles; Miami; New York City; San Antonio; San Diego; San Francisco; and Seattle.
Read the News Release Here »
Read a Copy of the GTO Here »
Read Frequently Asked Questions Regarding These GTOs Here »
TDI Proposes New Rules
TDI | Nov. 6, 2020
On Friday, Nov. 6, TDI proposed the following new rules:
Assesment of Maintenance Taxes and Fees (applies to underwriters only)
TDI proposes to amend 28 TAC §1.414, concerning the assessment of maintenance taxes and fees imposed by the Insurance Code. Learn more »
Examination Expenses and Assesments (applies to underwriters only)
TDI proposes amendments to 28 TAC §7.1001, concerning assessments to cover the expenses of examining domestic and foreign insurance companies, and self-insurance groups providing workers'compensation insurance. Learn more »
Electronic Submissions and Communications (applies to agents and underwriters)
TDI proposes new 28 TAC §1.1301 and §1.1302, concerning electronic submissions made to TDI and electronic communications from TDI. Learn more »
TDI will consider any written comments on the proposals above that are received by the department no later than 5:00 p.m., central time, December 7, 2020. Send your comments to ChiefClerk@tdi.texas.gov
; or to the Office of the Chief Clerk, MC 112-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.
TLTA to Monitor Development of Proposed Rules
TLTA remains engaged with TDI on the development of these rules, and we will report more as TDI gets closer to final adoption. If you have questions or concerns, please contact Aaron Day
, TLTA Director of Government Affairs and Counsel.
California Passes Measure to Revamp Consumer Privacy Law
ALTA | Nov. 9, 2020
Last week, California voters approved a ballot measure that will rewrite its data privacy law. Proposition 24, also known as the California Privacy Rights Act, makes key changes to the state privacy law that was implemented earlier this year. More importantly, since it passed as a ballot measure, it will be very difficult for the state legislature to make changes.
Taking effect in 2023, Proposition 24 expands Californians' ability to restrict how companies may use their "sensitive" personal information while also allowing them to block the sale and sharing of personal data. It also creates a new regulatory agency to enforce the law.
ALTA's Data Privacy Workgroup analyzed the proposal this summer. One critical beneficial component is that the exemptions for personal information collected pursuant to the Gramm-Leach-Bliley Act (GLBA) was retained. Title and settlement companies have had to meet the requirements of GLBA for decades. GLBA also forms the backbone Pillar 3 of the ALTA Best Practices.
In addition, the business-to-business (B2B) and employee exemptions also remained. Under the employee exemption, personal information of consumers within an employment relationship (a job applicant, employee, owner, director, officer, medical staff member or contractor) is largely exempt from the California Consumer Privacy Act (CCPA) to the extent that the personal information is collected and used within the context of (i) the employment relationship, (ii) having an emergency contact on file, or (iii) administering benefits. However, pursuant to CCPA section 1798.100(b), businesses must still provide notice to these categories of consumers. Under the B2B exemption, personal information involved in B2B communications or transactions where the consumer is acting on behalf of a business solely relate to providing or receiving a product or service to or from another business. Businesses must still provide B2B consumers the right to opt out of the sale of their information.
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