- October 12, 2009
- All Texas Issuing Offices
- Stewart Title Guaranty as Trustee in Texas Deeds of Trust
We have had several recent requests for Stewart Title Guaranty Company (STG) or Stewart Title Company (STC) to be named as trustee in deeds of trust for which we are providing policies of title insurance. It is the policy of the Company that neither Stewart Title Guaranty Company nor Stewart Title Company be named as a trustee in a deed of trust. Section 51.001, Texas Property Code defines a trustee as a person authorized to exercise the power of sale under the terms of a security agreement. Neither STG nor STC is a person and neither would agree to exercise the power of sale granted by a deed of trust. Additionally, neither Company has need of the risk of litigation or the expense of denying liability by virtue of simply being named as trustee in a deed of trust (See Property Code Section 51.007).
A lender or lender's counsel requesting STG or STC to act as trustee should be referred to a Texas attorney. Many offices make arrangements with attorneys to draw documents necessary for a transaction and those attorneys may be willing to act as a trustee.
Only Stewart Legal Services or a Texas Associate Senior Underwriter can authorize STG or STC to be named as a trustee in a deed of trust encumbering Texas property.
If you have questions relating to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
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.