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Section 9: Title Insurance Policies

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For State

Title insurance policies are to be prepared according to the rules promulgated by the Texas Department of Insurance. Since title is vested in the State of Texas through both purchase and ED proceedings, the name of the insured must always be “the State of Texas.” Policies will be written in the amount of:

The effective date of the title insurance policy should be the date of the recording of the instrument of conveyance (i.e. deed or easement) or the date of recording of the final judgment if title is obtained through ED proceedings.

All policies for title insurance will have the provision regarding arbitration deleted by means of executing the Deletion of Arbitration Provision form issued by the Texas Department of Insurance. The arbitration provision is described in Item 14 of the Conditions and Stipulations contained in each title insurance policy. This form can be executed by ROW PD and must be returned to the title insurance company at or before closing. The title insurance company is required to furnish the form to delete the exception upon issuance of a commitment. It is the responsibility of ROW PD to ensure that this form is executed and returned to the title insurance company on each transaction.

All title insurance policies shall contain a complete property description of the property acquired. The property description and parcel plats reflect a boundary survey and must be signed and sealed by a RPLS. Property descriptions consist of a heading with TxDOT identification items, along with a regular metes and bounds description and parcel plats prepared on letter size sheets. The included property description shall match the property description included in the conveyance document.

The title insurance company, at its option, may include a volume and page (or document number) reference to the recorded conveyance document; however, such volume and page (or document number) reference may NOT be used in place of the complete property description, which is to be attached in ALL cases.

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When the LPA is required to provide title insurance in the name of the State of Texas, the LPA must deliver to ROW PD an acceptable title insurance policy. See Title Insurance Requirements (for State) and Title Insurance Requirements (for LPA). The policy must be obtained in accordance with the procedures in Title Insurance Requirements (for LPA). When state cost participation is requested, the cost of title insurance will be TxDOT's responsibility, and payment will be made directly to the title insurance company according to customary practices. Title insurance commitments and policies are not required by TxDOT for off-system projects but may be obtained at the option of the LPA.

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