Bulletin: TX000067
Dear Associates,
In 2003, numerous bills and constitutional amendments that affect real estate transactions were approved. The following are some of the bills that affect us:
PUBLIC RECORDS
HB 2930 and SB 1559. New Disclosure in Deeds, Mortgages and Deeds of Trust. Applicable to Deeds, Mor...
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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.
EXHIBIT A
GUIDELINES FOR AD VALOREM TAX SALES PURSUANT TO JUDICIAL FORECLOSURE
Company Policy: You may insure on the basis of tax deeds based on judicial foreclosures in the chain of title, subject to the following requirements:
(1) If the tax foreclosure suit is brought before 9-1-97:
(a) Verify (by inspection or affidavit) that no one is in possession of the land (other than the person buying pursuant to the tax sale).
(b) Verify how the former owners and lienholders were served. If they were personally served, you may rely upon the order of foreclosure if it adequately describes the land.
(c) If the former owners and lienholders were not personally served, require the following:(i) verify an attorney ad litem was appointed (required by Texas Rules of Civil Procedure, Rule 244);
(ii) verify that attorney for taxing authority made an affidavit that the defendant could not be found after diligent inquiry (this should be in suit file);
(iii) if defendant is cited by posting and not by publication, verify that attorney for taxing attorney filed an affidavit stating that publication could not be had for the maximum fee as provided (by Rule 117a) chargeable as costs payable upon sale of the land (this should be in suit file);
(iv) verify the former owners and lienholders were served by posting or publication as evidenced by affidavit of publication or posting (this should be in suit file);
(v) require a release of any lien in favor of an institutional lender, IRS, or governmental entity, unless that creditor was personally served; and,
(2) If the tax foreclosure suit is brought after 9-1-97:
(a) Verify (by inspection or affidavit) that no one is in possession of the land (other than the person buying pursuant to the tax sale);
(b) Verify the manner of service of the former owners and lienholders. If they were personally served, verify that the order of foreclosure is final (at least 45 days and no appeal or motion for new trial);
(c) If the former owners and lienholders were not personally served, require the following:(i) verify an attorney ad litem was appointed (required by Texas Rules of Civil Procedure, Rule 244);
(ii) based on your actual knowledge and review of the foreclosure, it should not appear to you that the former owners and lienholders could have been personally served (for example, if you know that the former owner has a local telephone number or address or that the former owner's address is known, do not insure based on citation by publication or posting);
(iii) verify that attorney for taxing authority made an affidavit that the defendant could not be found after diligent inquiry (this should be in suit file);
(iv) if defendant is cited by posting and not by publication, verify that attorney for taxing attorney filed an affidavit stating that publication could not be had for the maximum fee as provided (by Rule 117a) chargeable as costs payable upon sale of the land (this should be in suit file);
(v) verify that the former owners and lienholders were served by publication or posting as evidenced by affidavit of publication or posting (this should be in suit file);
(vi) require a release of any lien in favor of an institutional lender, IRS, or governmental entity, unless that creditor was personally served; and,
(vii) add the following exception if the land was the residence homestead of the former owner or was agricultural land and if the tax sale deed was recorded within the last two years "Any claim of invalidity of the foreclosure and tax sale pursuant to that suit under cause number [describe tax foreclosure suit] and as reflected by that deed [describe tax deed];"
(viii) add the following exception if the land was not the residence homestead and was not agricultural land and if the tax sale deed was recorded within the last year "Any claim of invalidity of the foreclosure and tax sale pursuant to that suit under cause number [describe tax foreclosure suit] and as reflected by that deed [describe tax deed]."(d) Do not insure the original purchaser at the tax foreclosure sale, unless the former owners and lienholders were personally served or unless you secure approval from our underwriting personnel.
(e) If the land was the residence homestead of the former owner or agricultural land or if the ownership of the land includes minerals, add the following exception if you issue a policy within two years after recordation of the tax deed: "Any rights of redemption in connection with that foreclosure and sale reflected by [describe tax foreclosure suit and tax deed]."
(f) If the land was not the residence homestead of the former owner or agricultural land and consists solely of a surface estate in land (all minerals were severed), add the following exception if you issue a policy within six months after recordation of the tax deed: "Any rights of redemption in connection with that foreclosure and sale reflected by [describe tax foreclosure and tax deed]."