Virtual Underwriter

© 2020 Stewart Title Company

Underwriting Manual: TX

1.04

Abstracts Of Title

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State Supplements

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Underwriting Manual Subtopic
1.04.1

In General

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An abstract of title for a specific parcel of land should begin in theory with the initial transfer of the property from the sovereign and continue until the day the abstract is certified.

It contains, in chronological order of recording, a full listing of all the instruments, judicial proceedings, liens, encumbrances, and all other matters shown by the public records as affecting or impairing the parcel of land.

Underwriting Manual Subtopic
1.04.2

Contents

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The Real Estate Contract promulgated by the Texas Real Estate commission provides information as to both abstracts and title insurance.  Title insurance is the only service available in most communities.




Underwriting Manual Subtopic
1.04.3

Areas Of Special Consideration For The Title Examiner When Examining An Abstract

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The State Bar of Texas has published title standards which are contained in the Texas Property Code. The standards do not apply to title insurance transactions.

The Bar Standards include:

That the abstract has been properly certified in accordance with local practices, statutory provisions, or standards of examination.

That there is continuity of time in the chain of certificates contained in the abstract (if there is more than one).

If the abstract designates certain public records have not been searched by the abstractor, the examiner must make a search of these records at state and federal courts.

That the legal description shown in the abstract is the same one to be used in the title commitment or policy.

That the taxes and special assessment searches do not except any portion of the land certified in the abstracts.

That the date and time of the certificate coincide with the date and time of the commitment or policy.

Underwriting Manual Subtopic
1.04.4

Sixty Month Chains - Lenders

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From time to time Lenders request chains of title to be certified as part of a closing of their loan.

Such a product is generally considered to be an abstracting product with attendant non-policy liabilities.

Underwriting Manual Subtopic
1.04.5

Texas Residential Limited Coverage Chain of Time Policy (7.53)

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This form has been promulgated to supply lenders with the information discussed in faction 1.04.4 above.

Procedural Rule P-71 provides that such Limited Search Policy is limited to residential loan policies with an insured that is an institutional lender.  The period covered by the Limited Search Policy cannot exceed 60 months.  The amount of insurance is $100 and the premium under R-35 is $15.00.