Example TX Commitment To Insure A Lease Which Is To Be Created 1
Effective Date of Commitment: ______________________ 20_________ o'clock ____ m
GF No. or File No.
Issued: _______________________________________ 20___________ o'clock ____ m
1. The policy or policies to be issued are:
(a) OWNER POLICY OF TITLE INSURANCE (Form T-1)
(Not applicable for improved one-to-four family residential real estate)
Policy Amount: $100,000.00
Proposed Insured: Peppermint Patti
(b) TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE?ONE-TO-FOUR FAMILY RESIDENCES (Form T-1R)
Policy Amount: $
(c) MORTGAGEE POLICY OF TITLE INSURANCE (Form T-2)
Policy Amount: $80,000.00
Proposed Insured: ABC Corporation
Proposed Borrower: Peppermint Patti
(d) MORTGAGEE TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13)
Binder Amount: $
Policy Amount: $
2. The interest in the land covered by this Commitment is:
3. Record title to the land on the Effective Date appears to be vested in: Charlie Brown
4. Legal description of land:
LOT 1, BLOCK 1, ROYAL ACRES, a subdivision of land in Peanutsville City, Schultz County, State of Comics, according to the recorded plat thereof.
EXCEPTIONS FROM COVERAGE
In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorney's fees, and expenses resulting from:
1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception):
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, if any of any spouse of any insured. (Applies to the Owner Policy only.)
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled-in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.
(Applies to the Owner Policy only.)
5. Standby fees, taxes and assessments by any taxing authority for the year 20__, and subsequent year, and subsequent, taxes and assessments by any taxing authority for prior years due to change in land usage or ownership.
6. The terms and conditions of the documents creating your interest in the land.
7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence to us before a binder is issued.)
8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Mortgagee Policy only.)
9. The following matters and all terms of the document creating or offering evidence of the matters (We must insert matters or delete this exception.):
_______________ )Other Exceptions
Your Policy will not cover loss, costs, attorney's fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued:
1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record.
2. Satisfactory evidence must be provided that:
- no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A,
- all standby fees, taxes, assessments and charges against the property have been paid,
- all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, sub-contractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialman's liens have attached to the property,
- there is legal right of access to and from the land,
- (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage.
3. You must pay the seller or borrower the agreed amount for your property or interest.
4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment.
5. The application for title insurance states that our policy will cover a leasehold estate not yet in final form; however, this commitment covers only the fee simple title.
Before the Company can issue a commitment, covering the estate which is to be the subject of our leasehold policy, it is necessary that a fully executed copy of the lease and of any agreement affecting the same be produced for examination purposes and, if approved by the Company, be recorded in the Office of the County Clerk of _____________ County.
In lieu of such recording, it shall be permissible to record a short form lease only, but such short form lease must, standing alone, constitute an enforceable lease and must refer to the full lease. In such event, we will retain a fully executed copy of the lease in our file.
This commitment is subject to such further exceptions, if any, as then may be necessary.
6. NOTE: Paragraph 1(h) of the Conditions and Stipulations of the Owner and Mortgage Leasehold Endorsement define leasehold estate as follows:
(h) "leasehold estate": The right of possession for the term or terms described in Schedule A hereof subject to any provision contained in the Lease, which limits such right of possession.
7. __________________________ )
_____________________________ ) Other requirements as necessary
No guidelines are available for this form at this time.