Chapter 16: Title Insurance: Title Reports and Policies, Escrow and Closing

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Section 1: Title Insurance Requirements (for State)

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General

Title insurance is required for all parcels acquired through a disbursement of State funds, whether acquired by purchase or through ED proceedings. Title insurance requirements for donated parcels follow the procedure set forth in Title Requirements: General Title Requirements (for State and LPA). This procedure is modified somewhat when an easement is donated and a fee parcel is acquired by purchase if both parcels are out of the same parent tract. The required title information for the easement will have been furnished in connection with the issuance of a title policy on the fee taking. The title policy, however, will be written to insure the fee parcel only, and will be in the amount of the consideration paid to the grantor for the fee interest in the particular parcel.

The following instructions for purchasing title insurance on transportation projects are to be applied separately to each authorized project:

  • When there are abutting or non-abutting TxDOT-numbered parcels under one ownership, separate closings and separate title policies will be issued for each parcel.
  • When there are abutting parcels under one ownership and some parcels are acquired by negotiation and others by condemnation, each negotiated parcel will have a separate closing and policy, and the condemned parcels will be insured by a separate title policy for each parcel included in each suit.
  • When a single parcel with multiple ownership is acquired partially by negotiation and partially by condemnation, and the percentage of each ownership interest is clearly shown on the title commitment, the negotiated interest should be insured by one title policy and the condemned interest insured by a separate title policy. The interest negotiated can be closed and a policy issued prior to the resolution of any ED suit.
  • When a single parcel contains an outdoor advertising sign with ownership different than the fee ownership, one commitment should be obtained. If both interests are to be acquired by negotiation there should be only one title policy issued, even if there are two separate closings at different times. If one interest is acquired by negotiation and the other by condemnation, it is permissible to have separate title policies for both interests. The interest negotiated can be closed and a policy issued prior to the resolution of any ED suit.
  • A separate basic premium may be charged for each policy issued, but no charges for additional chains of title are to be made in any case.
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