By: Harris S.B. No. 1307
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to uniform closing and settlement statements.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Article 9.53, Insurance Code, is amended to read
1-5 as follows:
1-6 Art. 9.53. UNIFORM CLOSING AND SETTLEMENT STATEMENTS. On or
1-7 prior to January 1, 1976, the commissioner [board], after notice
1-8 and hearing, shall prescribe uniform settlement and closing
1-9 statement forms to be used in connection with the settlement and
1-10 closing of any conveyance or mortgaging of real estate in which
1-11 transaction a title insurance policy is issued by any title
1-12 insurance company or title insurance agent. The commissioner
1-13 [board] is specifically authorized to establish separate forms for
1-14 transactions involving improved residential real property and for
1-15 all other real property transactions. The forms prescribed by the
1-16 commissioner [board] shall be designed so that dual forms or
1-17 separate forms provided for each party to the transaction
1-18 identifying only the charges made to such party may be used at any
1-19 settlement or closing.
1-20 Every such settlement and closing statement furnished to a party to
1-21 the transaction shall state thereon the name of any person, firm,
1-22 or corporation receiving any sum from such party to the settlement
1-23 or closing. The title insurance company and the title insurance
2-1 agent, however, shall be required to include within the closing and
2-2 settlement statement only those items of disbursement as are
2-3 actually disbursed by the title insurance company or the title
2-4 insurance agent. If a title is examined or any closing or
2-5 settlement services rendered by an attorney, other than a full-time
2-6 employee of either the title insurance company or the title
2-7 insurance agent, the amount of such fee (shown as included in the
2-8 premium) and the name of the attorney (which may be expressed by
2-9 the name of the firm, if applicable) to whom such fee was paid
2-10 shall be shown thereon. Such form shall also conspicuously and
2-11 clearly itemize the charges imposed upon such party in connection
2-12 with the settlement and closing. If a charge for title insurance
2-13 is made to such party, the form shall state whether the title
2-14 insurance premium included in such charges covers or insures the
2-15 mortgagee's interest in the property, the borrower's interest, or
2-16 both.
2-17 Any title insurance company or any title insurance agent may at its
2-18 election use the uniform closing statement prepared under the
2-19 provisions of the Real Estate Settlement Procedures Act of 1974
2-20 (Public Law 93-533) in lieu of the uniform closing statement
2-21 prescribed by the commissioner [board].
2-22 [The provisions of this Article 9.53 of this Chapter 9 shall not
2-23 apply to the settlement or closing of any residential real estate
2-24 transaction regulated by the provisions of the Real Estate
2-25 Settlement Procedures Act of 1974 (Public Law 93-533).]
2-26 The provisions of this Article 9.53 of this Chapter 9 shall not
3-1 apply to a settlement or closing if neither a title insurance
3-2 company, a title insurance agent, an attorney for a title insurance
3-3 company or title insurance agent, nor a representative of the title
3-4 insurance company, title insurance agent or attorney for a title
3-5 insurance company or title insurance agent has actually handled the
3-6 closing or settlement of such real estate transaction.
3-7 SECTION 2. This Act takes effect immediately if it receives
3-8 a vote of two-thirds of all the members elected to each house, as
3-9 provided by Section 39, Article III, Texas Constitution. If this
3-10 Act does not receive the vote necessary for immediate effect, this
3-11 Act takes effect September 1, 2001.