- January 07, 1993
- All Texas Independent Issuing Offices
- Seller's Disclosures of Property Condition: Property Code Section 5.008
As you are aware, as of January 1, 1994, Seller Disclosures are now required on most sales of previously occupied single family residences. Our analysis of the law discloses no underwriting implication. However, we want to share with you the escrow guidelines our Stewart-owned offices will follow:
- If the statutory Seller(s) Disclosure is attached to the earnest money contract and is signed by the Seller(s) and the Purchaser(s) the escrow agent may close the transaction at any time, without regard to the seven(7) day period; and,
- If the statutory Seller(s) Disclosure is not attached to the earnest money contract, and/or the statutory Seller(s) Disclosure is not signed by the Purchaser(s), then the escrow agent must disclose to the Purchaser(s) that the Seller(s) is/are required to provide Seller's Disclosure Information per statute. Upon execution of the "Escrow Agent Disclosure Form" (please see referenced form at the end of this bulletin) by the Purchaser(s), closing may then occur.
Observing these guidelines should reduce escrow agency liability, if any, due to failure of Seller(s) to meet the disclosure requirements.
If you have any questions, please call Richard Black at 1-800-252-9229 or the Stewart Underwriter you usually contact.
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.