Date: March 4, 2022
To: AGENTS OF TEXAN TITLE INSURANCE COMPANY
From: TEXAN TITLE INSURANCE COMPANY UNDERWRITING
RE: SOURCE OF TITLE/SEARCH GUIDELINES
Our search guidelines are as follows:
Guideline 1: When you have an Owner’s Policy issued by a licensed Texas underwriter insuring the party now vested in title:
A. If your company issued the prior policy, you may start your search with the effective date of the last commitment. If your company did not issue the prior policy, begin your search 60 days before the date of the prior policy. The prior policy must cover the same property you are examining.
B. The purchaser’s/borrower’s name should be checked for federal abstracts of judgment (20-year search), Texas Workforce Commission liens, also known as wage earners’ liens (20-year search), and pending bankruptcies.
C. Conveyance should be by general warranty deed when you have an arm’s length sale between private persons or entities.
Guideline 2. If you do not have an Owner’s Policy issued by a licensed Texas underwriter insuring the party now vested in title:
A. Platted subdivision property and you have a base in your plant:
i. You may use your base as a starter.
ii. The purchaser’s/borrower’s name should be checked for federal abstracts of judgment (20-year search), Texas Workforce Commission liens, also known as wage earners’ liens (20-year search), and pending bankruptcies.
iii. Conveyance should be by general warranty deed when you have an arm’s length sale between private persons or entities.
B. Platted subdivision property but you do not have a base in your plant:
i. Your search should begin on or before January 1, 1979 (Sect. 2501.004, Texas Insurance Code), and further back, if necessary, to reach the last complete conveyance by general warranty deed, or such greater period of time as is necessary to determine ownership and appropriate liens, encumbrances upon or defects in the title.
ii. The purchaser’s/borrower’s name should be checked for federal abstracts of judgment (20-year search), Texas Workforce Commission liens, also known as wage earners’ liens (20-year search), and pending bankruptcies.
iii. Conveyance should be by general warranty deed when you have an arm’s length sale between private persons or entities.
C. Acreage:
i. Your search should begin on or before January 1, 1979 (Sect. 2501.004, Texas Insurance Code), and further back, if necessary, to reach the last complete conveyance by general warranty deed, or such greater period of time as is necessary to find all pipeline easements, access easements, etc., which affect title.
ii. The purchaser’s/borrower’s name should be checked for federal abstracts of judgment (20-year search), Texas Workforce Commission liens, also known as wage earners’ liens (20-year search), and pending bankruptcies.
iii. Conveyance should be by general warranty deed when you have an arm’s length sale between private persons or entities.
Mineral Search
These guidelines apply in addition to the rules set out above.
– If you do not intend to insure the mineral estate, either insert the mineral exclusion in the property description on Schedule A, or place the general mineral exception on Schedule B. See Procedural Rule P-5.1 for the promulgated wording. You may still itemize any mineral estate exceptions on Schedule B found in your search.
Note: Merely putting “surface only” in the property description is not sufficient to exclude mineral coverage from the policy.
– If you intend to insure the mineral estate, you must have a plant that is complete from sovereignty and you must show all items on Schedule B that your search uncovers which affect the mineral estate.