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Section 10: Fees for Title Services

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General

The title insurance policy premium established by the Texas Department of Insurance covers:

An additional fee for services that are not specified by the Commissioners of Insurance as being covered by approved title insurance rates may be paid to a title insurance company as a “closing” or “escrow” fee, provided such services are reasonably necessary to complete the closing and the fees are commercially reasonable. Such additional fee may be paid for each state-numbered parcel. Although, in some instances, circumstances may require that separate policies be written when purchasing a parcel, only one charge for the fee mentioned above may be paid on each parcel. Such Closing Fees vary among title insurance companies in the various areas of the state. Therefore, ROW PD should evaluate the additional fee as they deem appropriate for each situation, based upon what title insurance companies in that area are charging private customers for similar services. Care should be exercised to ensure that the property owner is not charged with any closing expenses incidental to the transaction, other than those set forth under this chapter. Approved title insurance rates can be obtained from any title insurance company.

If ROW PD requests a title insurance company to furnish tax information when title insurance is ordered, the title insurance company may be reimbursed for the documented costs of the required tax certificates. The title insurance company's request for reimbursement must include documentation to support costs for the certificates.

A title insurance company may submit a request for advance payment of the total premium to be paid for a title insurance policy. Only one advance premium charge may be made per title insurance policy to be issued regardless of the number of commitments involved. If, for example, more than one commitment is issued to cover the acquisition of two or more interests in a single parcel, only one advance premium charge will be payable. When a title insurance company requests an advance premium, the company will be required to submit an Owner Title Insurance Policy Commitment.

These commitment forms are in addition to the industry standard title insurance commitment that is issued for each parcel. The Owner Title Insurance Policy Commitment should be submitted electronically along with the parcel payment request and the advance premium reflected on the ROW-A-15 Payment Request, as appropriate. For this purpose, the date of submittal of the commitment is defined as the date TxDOT actually receives the proper commitment from the title insurance company. This commitment must be according to the terms of TxDOT's request to the title insurance company. The submittal date of the commitment, as here defined, must be shown on ROW-A-15 Payment Request, as appropriate, requesting payment of the advance premium charge. It is emphasized that “commitment” does not refer to a preliminary title or examiner's report.

The advance premium charge will be credited against the total title insurance premium when the property being insured is acquired within the thirty-six (36) month time period which starts with the date of issuance of the title insurance policy commitment. No credit will be allowed if title is not conveyed within this period of time.

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