Law:Title 11. Title Insurance. Subtitle E. The Business Of Title Insurance from Chapter 2702. Closing And Settlement (Texas)

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Subtitle E. The Business Of Title Insurance

Contents

Chapter 2702. Closing And Settlement

Subchapter A. Insured Closing And Settlement Letters

Section  2702.001.  Insured Closing And Settlement Letter: Loans.

(a) On request, a title insurance company may issue insured closing and settlement letters in connection with the closing and settlement by a title insurance agent or direct operation of loans relating to real property located in this state.

(b)  Insured closing and settlement letters must be issued in the form prescribed by the commissioner.

(c)  A title insurance company may not impose a charge for issuing insured closing and settlement letters under this section.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.002.  Insured Closing And Settlement Letter: Certain Buyers Or Sellers.

(a) On written request, a title insurance company may issue to the buyer or seller of real property located in this state, the sales price of which exceeds the maximum covered claim specified by Chapter 2602, an insured closing and settlement letter in connection with the closing and settlement of the transaction by a title insurance agent or direct operation. Only the title insurance company that is to issue an owner title insurance policy in connection with the transaction may issue the insured closing and settlement letter.

(b)  An insured closing and settlement letter must be issued:

(1)  at or before closing; and

(2)  in the form and manner prescribed by the commissioner.

(c)  The commissioner may adopt a charge for the issuance of an insured closing and settlement letter under this section and prescribe the form and manner in which the charge must be made.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.003.  Effect Of Failure To Issue Insured Closing And Settlement Letter.

The failure of a title insurance company to issue an insured closing and settlement letter does not affect the company's liability under an issued title insurance policy.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Subchapter B. Uniform Closing And Settlement Statements

Section  2702.051.  Applicability.

This subchapter does not apply to the closing or settlement of:

(1)  a residential real property transaction regulated by the Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533); or

(2)  a real property transaction if the closing or settlement is not actually handled by:

(A)  a title insurance company, a title insurance agent, or an attorney for a title insurance company or title insurance agent; or

(B)  a representative of a title insurance company, a title insurance agent, or an attorney for a title insurance company or title insurance agent.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.052.  Duty To Prescribe Uniform Closing And Settlement Statement Forms.

(a) The department, after notice and hearing, shall prescribe uniform closing and settlement statement forms to be used in connection with the closing and settlement of a transaction involving:

(1)  the conveyance or mortgage of real property; and

(2)  the issuance of a title insurance policy by a title insurance company or title insurance agent.

(b)  The department may prescribe separate forms under this section for transactions involving improved residential real property and for all other real property transactions.

(c)  The department shall design the forms under this section to enable each party to the transaction to be provided with a dual or separate form identifying only the charges made to that party.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.053.  Content Of Closing And Settlement Statement.

(a) Each closing and settlement statement provided to a party to a transaction described by Section 2702.052(a) must state the name of any person receiving any amount from that party.

(b)  Notwithstanding Subsection (a), the title insurance company or title insurance agent is required to include in the closing and settlement statement only those items of disbursement that are actually disbursed by the company or agent.

(c)  If an attorney, other than a full-time employee of the title insurance company or title insurance agent, examines a title or provides any closing or settlement services, the closing and settlement statement must include:

(1)  the amount of the fee for the services, shown as included in the premium; and

(2)  the name of the attorney or, if applicable, the name of the firm to which the fee was paid.

(d)  The closing and settlement statement must conspicuously and clearly itemize the charges imposed on the party in connection with the closing and settlement.

(e)  If a charge for title insurance is made to the party, the closing and settlement statement must state whether the title insurance premium included in the charge covers the mortgagee's interest in the real property, the borrower's interest, or both.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.054.  Use Of Alternate Settlement Statement Form Permitted. A T

itle insurance company or title insurance agent may use the uniform settlement statement form prepared under the Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533) instead of the uniform closing and settlement statement form prescribed by the department under this subchapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Subchapter C. Advance Disclosure Of Closing And Settlement Costs In Transactions Involving Residential Real Property

Section  2702.101.  Applicability.

This subchapter does not apply to the closing or settlement of a real property transaction if the closing or settlement is not actually handled by:

(1)  a title insurance company, a title insurance agent, or an attorney for a title insurance company or title insurance agent; or

(2)  a representative of a title insurance company, a title insurance agent, or an attorney for a title insurance company or title insurance agent.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.102.  Duty To Provide Advance Disclosure Of Closing And Settlement Costs.

(a) Except as provided by Subsection (c), on the written request of the buyer, seller, or borrower before the closing and settlement of a transaction involving improved residential real property, a title insurance company or title insurance agent shall, in connection with the issuance of any kind of title insurance policy guaranteeing a lien on or the title to the property, provide to the requesting party an itemized disclosure of each charge to be made to that party that arises in connection with the closing and settlement.

(b)  The itemized disclosure must be provided on a closing and settlement statement form prescribed or permitted under Subchapter B.

(c)  The title insurance company or title insurance agent is required to provide the itemized disclosure only to the extent that information is available concerning each charge to be made to the party. If information concerning a charge is not available, the title insurance company or title insurance agent shall:

(1)  make a notation that the charge is to be made but that the information is not available or that the amount shown is an estimate of the charge; and

(2)  advise the party in writing as to the identity of the person or organization responsible for the charge.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.



Section  2702.103.  Title Insurance Company Or Title Insurance Agent Not Subject To Requirements Applicable To Lenders.

(a) Notwithstanding Section 2702.102, a title insurance company or title insurance agent is not required to disclose a cost or charge that a lender is required by law to disclose to a party.

(b)  Section 2702.102 does not impose on a title insurance company or title insurance agent any obligation imposed on a lender by the Real Estate Settlement Procedures Act of 1974 (Pub. L. No. 93-533).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.


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