Bulletin: TX000018

Date:
April 27, 1993
To:
All Texas Issuing Offices
RE:
Homesteads: Leases to Corporations or Partnerships

Dear Associates:

The case of In Re: John Taylor Company, 935 F.2d 75 (5th Cir. 1991) concerns homesteads. The court held that the debtor had a business homestead in property leased to a corporation wholly owned and operated by the debtor.

Company Policy - You should assume that the land is the homestead of the owner if:

  • The owner leases his or her home to a corporation, partnership, or other entity the owner controls.

  • The owner leases his or her farm (otherwise exempt) to a corporation, partnership, or other entity the owner controls.

  • The owner leases his or her business to a corporation, partnership, or other entity the owner controls.

Please call our underwriting personnel if you face this question.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
TX 8.08 Homestead
Exceptions Manual:
None
Forms:
None