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You are here: Home . bulletins . 1995earlier . 157

BULLETIN NO. 157

July 31, 1992

 

TO: ALL INSURERS WRITING TITLE INSURANCE IN THE STATE OF TEXAS AND ALL DIRECT OPERATIONS OR AGENTS THEREOF

RE: DESIGNATION OF "SUCCESSORS AND ASSIGNS" IN A MORTGAGEE TITLE POLICY

A Title Insurance advisory bulletin, dated May 23, 1983, authorized the following language, at the option of the agent or underwriter, if a lender requested assurance that a Mortgagee Title Policy would inure to the benefit of its successors or assigns:

"ABC Mortgage Company, its successors and/or assigns who are the lawful owner or owners of the evidence of debt identified herein and any subsequent owner or owners thereof."

On October 1, 1991, a new Mortgagee Title Policy form became effective in Texas. Pursuant to Sections 1(a)(i) and 12(c) of the Conditions and Stipulations in the new policies an obligor will not be an insured under the policy. The Department of Insurance staff believes the proper designation of a named insured's successors or assigns, for Mortgagee Title Policies after October 1, 1991, should be:

"ABC Mortgage Company, and each successor in ownership of the indebtedness secured by the insured mortgage, except a successor who is an obligor under the provisions of Section 12(c) of the Conditions and Stipulations."

Such language is based on Section 1(a)(i) of the Definition of Terms in the Mortgagee Title Policy, effective October, 1, 1991, and is for use only with that form. The language may not be added to, deleted from or altered in any manner.

/s/ Fabian S. Gomez III
FABIAN S. GOMEZ III, Director
Bonds, Crime & Glass, Other
Casualty and Title Insurance



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