Bulletin: TX2014006

Dear Associates:

The 2014 TDI revisions to the T-19 and T-19.1 clarify that if a matter is shown on Schedule B of the policy, it remains excepted to even if a T-19 series endorsement is issued. Many potential Insured will want one or more encroachment matters insured by the appropriate T-19 series endorsement. In an attempt to partially automate this process, we suggest the following procedure:

Have your examiner review the survey and the commitment to determine which matters may be approved for T-19 series coverage and which are significant enough to remain excepted in the policy(ies) to be issued. Please have them use the T-19 checklist attached to this bulletin.

FORM T-19 LOAN POLICY ENDORSEMENT
SURVEY CHECKLIST
(Revised JANUARY, 2014)

GF NO.

Do not physically delete any text from the face of the Form T-19 Endorsement itself. When coverage deletion from the Endorsement is necessary, place the following deletion statement in Schedule “B” of the Loan Policy as a separately-numbered item:  “The following subparagraph(s) of the attached Form T-19 Restrictions, Encroachments, Minerals Endorsement are deleted:                       .” 

NOTE:              In this Checklist, the terms “improvement” or “improvements” refer to any improvement affixed to either the insured land or adjoining land and INCLUDE landscaping, lawn, shrubbery, or trees.

CHECK ANY APPLICABLE ITEM BELOW, and note date and source of any required underwriter waiver [NWR = No Waiver Required].

(Note Any Underwriter Waiver)

BUILDING SETBACK VIOLATIONS (plat or restrictions).

NWR     Newer structure (less than four years old) encroaches over a setback line by 10% or less of the setback distance:  YOU MAY ISSUE THE LOAN POLICY ENDORSEMENT WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

Date:    Newer structure (less than four years old) encroaches over a setback line by more than 10% of the setback distance:

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE ENCROACHMENT IN SCHEDULE “B” OF THE LOAN POLICY. (No related deletion is required in the T-19 Endorsement).

NWR     Older structure (more than four years old) encroaches over a setback line by up to 100% of the setback distance, without overlapping any boundary line:  YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

NWR     Structure encroaching into the setback width is not permanent (e.g., outbuilding erected on wood or dirt floor), OR encroaching feature is not structural (e.g., in-ground pool, uncovered patio, walkway, driveway, fence, or retaining wall):  YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

EASEMENT ENCROACHMENTS

NWR     An improvement encroaches over 50% or less of the width of an easement created by plat or restrictions:  YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

NWR     An improvement encroaching into the easement is not permanent (e.g., outbuilding erected on wood or dirt floor):  YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

Date:    An improvement encroaches over more than 50% of the width of an easement created by plat or restrictions: 

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE ENCROACHMENT IN SCHEDULE “B” OF THE LOAN POLICY, AND SUB-PARAGRAPH NO. 4(c) MUST BE DELETED FROM THE T-19 ENDORSEMENT.

Date:    Swimming-pool basin encroaches any distance into the area of easement:

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE ENCROACHMENT IN SCHEDULE “B” OF THE LOAN POLICY, AND SUB-PARAGRAPH NO. 4(c) MUST BE DELETED IN THE T-19 ENDORSEMENT.

Date:    Improvement encroaches any distance into the area of a pipeline easement or more than 10% of the width of another separately recorded easement specifically granted to a named user: 

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE ENCROACHMENT IN SCHEDULE “B” OF THE LOAN POLICY, AND SUB-PARAGRAPH NO. 4(c) MUST BE DELETED IN THE T-19 ENDORSEMENT.

PROTRUSIONS/ENCROACHMENTS OVER BOUNDARY LINES

NWR     Seller’s/borrower’s fence protrudes onto neighboring public or private land OR is inset any distance from a boundary shared with a public road/street/alley:  YOU MAY ISSUE THE LOAN POLICY AND INTACT T-19 ENDORSEMENT WITHOUT EXCEPTING TO THIS PROTRUSION OR INSET IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement).

Date:    Adjoining owner’s fence encroaches into and encloses a strip exceeding three feet (3’) in width out of the land being insured: 

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO RIGHTS AND CLAIMS OF THE ADJOINING OWNER IN SCHEDULE “B” OF THE LOAN POLICY. (No related deletion is required in the T-19 Endorsement.)

NWR     ____ Structure either protruding onto or encroaching from adjoining private or public land is not permanent, e.g. outbuilding constructed with dirt/ wooden floor. YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement.)

Date:    Improvement protrudes from land being insured onto adjoining property: 

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE PROTRUSION IN SCHEDULE “B” OF THE LOAN POLICY, AND SUB-PARAGRAPH NO. 4(b) MUST BE DELETED IN THE T-19 ENDORSEMENT.

NWR     Improvement from adjoining property encroaches a distance of less than two feet (2’) onto the land being insured:  YOU MAY ISSUE THE LOAN POLICY WITHOUT EXCEPTING TO THIS ENCROACHMENT IN SCHEDULE “B”. (No related deletion is required in the T-19 Endorsement.)

Date:    Improvement from adjoining property encroaches a distance of more than two feet (2’) onto the land being insured: 

By:       UNLESS UNDERWRITER WAIVER IS OBTAINED, YOU MUST EXCEPT TO THE ENCROACHMENT IN SCHEDULE “B” OF THE LOAN POLICY, AND SUB-PARAGRAPH NO. 4(b) MUST BE DELETED FROM THE T-19 ENDORSEMENT.

Schedule of Rates effective May 2, 2013

Contact a Texas underwriter to discuss matters that the examiner is unable or unwilling to approve.

Add the following language to the matters that would normally be removed:

If the appropriate T-19 or T-19.1 endorsement is requested, paid for and attached to the policy to be issued, this exception is automatically deleted from the policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.