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Basic Manual of Title Insurance, Section III (continued)

Title Manual Main Index | Section III Index

Includes Rate Rules R-17 Effective 01/03/2014 | R-18 | R-19 |
R-20 Effective 01/03/2014 | R-21 Effective 01/03/2014 |
R-22 Effective 01/03/2014 | R-23 | R-24 | R-25 | R-26 | R-27 | R-28 | R-29 |
R-29.1 Effective 01/03/2014 | R-30 | R-31 | R-32 Effective 01/03/2014 |
R-33 | R-34 | R-35 | R-36 Repealed Effective 01/01/2012    


R-17. Policy Forms for Use by United States Government

Certificate of Title (U.S.A.) (Form T-6), Certificate of Title for Easement (U.S.A.) (Form T-9), and Policy of Title Insurance (U.S.A.) (Form T-11) may be issued to the United States of America showing the condition of title to a tract of land prior to the acquisition of title to said land by the U.S.A. in an amount to be designated by the U.S.A. The premium for said policies shall be at the Basic Rate.

Upon acquisition of title by the U.S.A., a final Certificate of Title, or an Endorsement to the Owner's Policy, may be issued to the U.S.A., and the premium therefor shall be at the Basic Rate, and subject to the provisions of Procedural Rule P-66, less the premium which was paid for the Certificate of Title or Policy of Title Insurance, prior to the acquisition by the U.S.A.

Policy of Title Insurance (U.S.A.) (Form T-11) may be issued in favor of the United States Postal Service upon its acquisition of title to properties with the addition of the following paragraph 9 to the conditions and stipulations:

"9. In the event that the interests of the United States Postal Service with respect to the land referred to in this policy are not represented by the Attorney General of the United States at the time any election, notice, request, permission, cooperation, assistance, or statement is required or permitted by these conditions and stipulations, then such election, notice, request, permission, cooperation, assistance or statement, as so required or permitted, and otherwise conforming hereto, shall be given or furnished by or to the United States Postal Service."

Such policy forms shall also have stricken therefrom in all places the name "United States of America" and have substituted in lieu thereof the name "United States Postal Service."

Effective January 3, 2014 (Order 2806)


 

Title Manual Main Index | Section III Index   

R-18. Refinance of Construction Loan

  1. When a Mortgagee Policy has been issued insuring the lien of a construction loan to be fully taken up, renewed,extended or satisfied by a new loan, the premium on the Mortgagee Policy insuring the lien of the new loan shall be at the currently promulgated minimum Basic Premium Rate;

  2. Provided however, if the Mortgagee Policy insuring the lien of the new loan is in an amount in excess of the amount of the Mortgagee Policy insuring the lien of the construction loan, the premium shall be equal to the greater of

    1. The currently promulgated minimum Basic Premium Rate, or

    2. The excess of the currently promulgated Basic Premium Rate on the amount of the Mortgagee Policy insuring the lien of the new loan less the currently promulgated Basic Premium Rate on the amount of the Mortgagee Policy insuring the lien of the construction loan.

  3. On Mortgagee Policies issued on multiple loans to fully take up, renew, and extend or satisfy a mortgage securing a construction loan insured by a single Mortgagee Policy, the new policies being in the amount of the new mortgages, the premium for the larger Mortgagee Policy shall be as set out in section A or B of this rule, using the total of the new mortgages as the amount on which to calculate the premium. The additional policy(ies) shall be issued at the minimum Basic Premium Rate.


 

Title Manual Main Index | Section III Index   

R-19. Amendment of or Endorsement Amending Exception in Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder)

Applicable as provided in Rule P-20. A Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) may be amended in accordance with Rule P-20 upon the payment of an additional premium of $20.00. This rate rule shall be applicable to any Interim Binder currently effective but shall be applicable only to Mortgagee Policies issued from and after July 24, 1980. A separate charge of $20.00 shall be made for any such amendment to or endorsement of a Mortgagee Policy issued subsequent to the issuance of an Interim Binder and no credit shall be given for any such amendment to or endorsement of a Mortgagee Policy issued subsequent to the issuance of an Interim Binder and no credit shall be given for any such amendment or endorsement to any prior Interim Binder.


 

Title Manual Main Index | Section III Index   

R-20. Owner's Policy After Construction Period

When an Owner's Policy has been issued in the manner provided in Rule P-8.A. with a face amount of $5,000,000 or more and the premium for said Owner's Policy has been paid in full, upon completion of the improvements on the property covered thereby, the owner's acceptance thereof, and satisfactory evidence to the Company that all bills for labor and materials have been paid in full, an Owner's Policy may be issued by the Company which issued the previously issued Owner's Policy, at any time up to one year after such completion of improvements, covering the same land, or a portion thereof, covered by said Owner's Policy and covering no other land, and the premium for the new Owner's Policy shall be the currently promulgated minimum policy Basic Premium Rate. Should the amount of the new Owner's Policy exceed the amount of the previously issued Owner's Policy, the premium for the new Owner's Policy shall be at (i) the Basic Rate plus (ii) the currently promulgated minimum policy Basic Premium Rate less (iii) the currently promulgated premium for the previously issued Owner's Policy, or in the event the previously issued Owner's Policy was issued for a simultaneous issue rate under Rule R-5.E., the currently promulgated premium for the Loan Policy referred to in said Rule R-5.E.

Effective January 3, 2014 (Order 2806)


 

Title Manual Main Index | Section III Index   

R-21. Multiple Owner's Policies on Same Land

Upon request when two or more owner's policies (excluding owner's policies covering leasehold estates) covering the same land and covering no other land are issued simultaneously to different insureds who are the grantor(s) (or seller(s)) and Grantee(s) (or purchaser(s)) in the transaction pursuant to which policies are to be issued (e.g., a buyer and a seller or a fee estate and easement on the fee), a separate policy shall be issued to all grantors (or sellers) and all grantee(s) (or purchasers) in accordance with Procedural Rule P-66. The rate for the first policy issued shall be the Basic Rate and the rate for the next Policy(ies) shall be 30% of the basic premium for such amount for each policy(ies) issued. Should the aggregate amount of the next policy(ies) exceed the amount of the first policy, the premium for the next policy(ies) shall be at the basic rate plus 30% of the basic premium for the first policy, less the Basic Rate for the first policy. In no event shall the charge for any policy issued pursuant to this rule be less than the minimum promulgated rate.

Effective January 3, 2014 (Order 2806)


 

Title Manual Main Index | Section III Index   

R-22. Owner's and Leasehold Owner's Policies

Upon request when an owner's policy ("Owner's Policy") insuring fee simple and an owner's policy insuring a leasehold estate ("Leasehold Owner's Policy") wherein the leasehold owner's policy or policies issued cover part or all of the land insured in the owner's policy and cover no other land and the owner's policy bears the same date as and specifically excepts to the leases creating the estates insured in each leasehold owner's policy issued pursuant to this regulation, in amounts as required by Procedural Rule P-66, the rate for the owner's policy shall be the basic rate. The rate for each leasehold owner's policy so simultaneously issued will be thirty (30%) percent of the rate for the owner's policy up to the amount of the owner's policy. The rate on the aggregate amount of any leasehold owner's policy (or combined amount of all leasehold owner's policies if more than one is issued) exceeding the owner's policy shall be the difference between the basic premium rates of the owner's policy and the basic premium rate for the leasehold owner's policies (or combined amount of all leasehold owner's policies if more than one is issued). In no event shall the charge for any policy issued pursuant to this rule be less than the minimum promulgated rate.

Effective January 3, 2014 (Order 2806)


 

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R-23. Commitment Fee

Applicable only as provided in Rule P-14b. A premium charge of $200.00 shall be made for issuance of each Owner Title Policy Commitment or Owner Title Policy Commitment for eminent domain proceedings to the Texas Department of Transportation. A credit of $200.00 shall be given upon issuance of an Owner Title Policy to the Texas Department of Transportation by the company, which issued the previously issued commitment. No credit shall be allowed if title is not conveyed within thirty-six (36) months from the date of the original Commitment.


 

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R-24. Applicable only as provided in Procedural Rule P-20

a premium of $5.00 shall be charged for addition of the language “Company insures that standby fees, taxes, and assessments by any taxing authority for the year _______ are not yet due and payable.”


 

Title Manual Main Index | Section III Index   

R-25. Premium for Commitment for Title Insurance to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation

This Rule R-25 is applicable only to a Commitment for Title Insurance issued pursuant to Procedural Rule P-15. A premium equal to the premium for a $25,000.00 policy as specified in the then current promulgated Basic Rate for title insurance shall be charged to the Federal Deposit Insurance Corporation, Office of Thrift Supervision, or Resolution Trust Corporation for each Commitment. It shall be permissible to collect the premium charge following issuance of the Commitment.

In that the agent's retained portion of the premium for the Commitment is attributed for: (i) title search, (ii) title examination, and (iii) issuance of the Commitment, the agent's portion of the premium shall be retained by and paid to only the agent licensed in the county where the property described in the Commitment is located.


 

Title Manual Main Index | Section III Index   

R-26. Premium for Limited Pre-Foreclosure Policy (Form T-98) and Limited Pre-Foreclosure Policy Downdate Endorsement (Form T-99)

  1. A Limited Pre-foreclosure Policy must be issued in accordance with the requirements of Procedural Rule P-43. In this Rule, the term "Foreclosing Mortgage" means the deed of trust, or other lien, specifically described under the section entitled Foreclosing Mortgage in the Limited Pre-Foreclosure Policy Combined Schedule (Form T-98).

  2. The premium for the Limited Pre-Foreclosure Policy must be calculated in accordance with Steps One through Four below:

    Step One: Determine the smaller of:

    1. the outstanding loan balance on the loan secured by the Foreclosing Mortgage; and,

    2. the value of the land secured by the Foreclosing Mortgage. If the proposed insured does not provide the Company with some written evidence of the value of the land, use the outstanding balance of the loan secured by the Foreclosing Mortgage as the Step One numerical figure.

    Step Two: Then use the numerical figure derived in Step One to calculate a full (undiscounted) premium amount using the Schedule of Basic Premium Rates for Title Insurance under Rate Rule R-1.

    Step Three: The multiply the premium amount calculated under Step Two x .40.

    Step Four: The premium for the Limited Pre-Foreclosure Mortgagee Policy is the greater of:

    1. The minimum basic premium; or,

    2. The premium calculated after completing Step Three above.

  3. The title insurance agent's portion of the premium shall be retained by and paid to only the title insurance agent licensed in the county where the land described in the Limited Pre-Foreclosure Policy is located because the title insurance agent's retained portion of the premium for the Limited Pre-Foreclosure Policy and the Limited Pre Foreclosure Policy Downdate Endorsement is attributed for:

    1. title search;

    2. title examination; and,

    3. issuance of the Limited Pre-foreclosure Policy and Limited Pre-Foreclosure Policy Downdate Endorsement.

  4. The premium for each Limited Pre-Foreclosure Policy Downdate endorsement shall be $50.00.


 

Title Manual Main Index | Section III Index   

R-27. Texas Residential Limited Coverage Junior Mortgagee Policy

  1. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) is issued pursuant to P-46, the premium shall be as follows:

    1. For Policy amount up to $10,000.00 or less, the premium shall be $150.00;

    2. For policy amount more than $10,000.00, but not more than $50,000.00, the premium shall be $175.00; and

    3. For policy amount more than $50,000.00, but not more than $100,000.00, the premium shall be $200.00.

  2. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and the Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement is issued in accordance with Rule P-46.B, the premium for such endorsement shall be $25.00.

  3. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) is issued in accordance with Rule P-46.C, the premium for such endorsement shall be $50.00.

  4. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (Form T-46) is issued in accordance with Rule P-46.D, the premium for such endorsement shall be $25.00.


 

Title Manual Main Index | Section III Index   

R-28. PREMIUM FOR EQUITY LOAN MORTGAGE ENDORSEMENT (T-42) AND SUPPLEMENTAL COVERAGE EQUITY LOAN MORTGAGE ENDORSEMENT (T-42.1)

  1. When a Mortgagee Policy of Title Insurance (T-2) is issued and the Equity Loan Mortgage Endorsement (T-42) is issued in accordance with Rule P-44, the premium for the Equity Loan Mortgage Endorsement (T-42) shall be 10% of the Basic Premium Rate.

  2. When a Mortgagee Policy of Title Insurance (T-2) is issued and the Equity Loan Mortgage Endorsement (T-42) is issued in accordance with Rule P-44 and the Supplemental coverage Equity Loan Mortgage Endorsement (T-42.1) is issued in accordance with Rule P-47, the premium for the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) shall be 15% of the Basic Premium Rate.


 

Title Manual Main Index | Section III Index   

R-29. Premium for Restrictions, Encroachments, Minerals Endorsement (T-19) and Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1)

  1. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued on residential real property in accordance with Rule P-50, the premium shall be 5% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $50.00.

  2. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued on land which is not residential real property, in accordance with Rule P-50, the premium shall be 10% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $50.00.

  3. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) is issued on residential real property in accordance with Rule P-50, the premium shall be:

    1. 10% of the Basic Rate for a single issue policy; or

    2. 5% of the Basic Rate for a single issue policy if an amendment of the exception to area and boundaries is also purchased in accordance with Rate Rule R-16.

      In either event, the minimum premium shall not be less than $50.00

  4. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) is issued on land which is not residential property, in accordance with Rule P-50, the premium shall be:

    1. 15% of the Basic Rate for a single issue policy; or

    2. 10% of the Basic Rate for a single issue policy if an amendment of the exception to area and boundaries is also purchased in accordance with Rate Rule R-16.

      In either event, the minimum premium shall be not less than $50.00


 

Title Manual Main Index | Section III Index   

R-29.1. Premium for Minerals and Surface Damage Endorsement (Form T-19.2), and Minerals and Surface Damage Endorsement (Form T-19.3)

  1. When the Minerals and Surface Damage Endorsement (Form T-19.2) is issued in accordance with Rule P-50.1, the premium shall be $50.00 for an endorsement to an Owner's Policy and $0.00 for an endorsement to a Loan Policy.

  2. When the Minerals and Surface Damage Endorsement (Form T-19.3) is issued in accordance with Rule P-50.1, the premium shall be $50.00 for an endorsement to an Owner's Policy and $0.00 for an endorsement to a Loan Policy.

    Effective January 3, 2014 (Order 2806)


 

Title Manual Main Index | Section III Index   

R-30. PREMIUM FOR ACCESS ENDORSEMENT (T-23)

When the Access Endorsement (T-23) is issued with a Mortgagee Policy of Title Insurance (T-2) or Owner Policy (T-1) in accordance with Rule P-54, the premium for the Access Endorsement (T-23) shall be $100 for each policy.


 

Title Manual Main Index | Section III Index   

R-31. PREMIUM FOR NON-IMPUTATION ENDORSEMENT (T-24, T-24.1)

When a Non-Imputation Endorsement (T-24) or Non-Imputation Endorsement (Mezzanine Financing) (T-24.1) is issued with an Owner’s Policy (T-1) in accordance with Rule P-55, the premium for the Non-Imputation Endorsement (T-24) or Non-Imputation Endorsement (Mezzanine Financing) (T-24.1) shall be 5% of the Basic Rate for the applicable Owner’s Policy. The minimum premium for the Non-Imputation Endorsement shall be not less than $25.00.


 

Title Manual Main Index | Section III Index   

R-32. PREMIUM FOR CONTIGUITY ENDORSEMENT (Form T-25, Form T-25.1)

When the Contiguity Endorsement (Form T-25 or Form T-25.1) is issued with a Loan Policy of Title Insurance (Form T-2) or Owner's Policy (Form T-1) in accordance with Rule P-56, the premium for the Contiguity Endorsement (Form T-25 or Form T-25.1) shall be $100 for each policy.

Effective January 3, 2014 (Order 2806)


 

Title Manual Main Index | Section III Index   

R-33. PREMIUM FOR ADDITIONAL INSURED ENDORSEMENT (T-26)

When the Additional Insured Endorsement (T-26) is issued with an Owner Policy in accordance with Rule P-57, the premium for the Additional Insured Endorsement (T-26) shall be 10% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.


 

Title Manual Main Index | Section III Index   

R-34. PREMIUM FOR ASSIGNMENT OF RENTS/LEASES ENDORSEMENT (T-27)

When the Assignment of Rents/Leases Endorsement (T-27) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-60, the premium for each Assignment of Rents/Leases Endorsement (T-27) shall be $0.00.


 

Title Manual Main Index | Section III Index   

R-35. Texas Limited Coverage Residential Chain of Title

A premium of $15.00 shall be charged for the issuance of each Texas Limited Coverage Residential Chain of Title Policy with respect to deeds and leases recorded in the public records in the period not exceeding sixty (60) months immediately preceding the Date of Policy.

(Go to Form T-53)
(Go to Procedural Rule P-71)


 

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R-36. Credit for Exclusion of or General Exception for Minerals

Rate Rule R-36 is repealed, effective January 1, 2012.

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Last updated: 02/25/2014



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