August 25, 2021

In This Issue:

  • TDI Issues Underwriter Data Call: Reports Due by Oct. 8
  • New PID Disclosure Requirements Effective Sept. 1
  • It's Not Too Late to Register for Tomorrow's Live Webinar: New Laws That Could Impact Your Operations Effective Sept. 1

TDI Issues Underwriter Data Call: Reports Due by Oct. 8

Texas Department of Insurance | Aug. 25, 2021
The Texas Department of Insurance (TDI) issues this mandatory data call under Insurance Code Section 2703.153, which requires title insurance underwriting companies to submit data to TDI annually. TDI uses this data to set title insurance premium rates, as required by Insurance Code Section 2703.151. This data call requests income, expense, and policy data from calendar year 2019.
 
Learn More, Submission Instructions »
 
Editor's Note: ICYMI, earlier today we published some important TDI compliance reminders regarding escrow officer license renewals. Some escrow officers are failing to renew their licenses. Read more here. 
 

New PID Disclosure Requirements Effective Sept. 1

TLTA | Aug. 25, 2021
Under HB 1543, which was passed by the Texas Legislature and will be effective Sept. 1, every seller of a property that is subject to or part of a Public Improvement District (“PID”) is required to disclose to a buyer the existence of and certain details about the particular PID prior to execution of a binding contract, otherwise the buyer has the right to terminate the contract. In order to comply with this new law, the Texas Real Estate Commission ("TREC") has approved a new contract containing the revised disclosure information in paragraph 6E of the contract and referring you to a new approved addendum to be used for the disclosure. Because this new disclosure law was just passed and made effective Sept. 1, the commission had to work quickly to provide these required forms.
 
Under this new law, disclosure requirements and consequences for failure to disclose are just like those regarding the MUD disclosures our industry has been dealing with for years. It requires notice of the PID prior to execution of the contract. TREC has approved a new PID notice form titled Addendum Containing Notice of Obligation to Pay Improvement District Assessments. It requires certain specific information to be filled in. This information can be found by looking at the CAD or Central Appraisal District tax records. The PID is also required to file the form with the service plan that must be filed. The TREC notice form is voluntary, meaning license holders can use this form or another one that meets the statutory requirements.
 
The disclosure will also be provided by title companies at closing.  It must be signed by the seller and the buyer and recorded in the deed records. Once this disclosure procedure is followed and the buyer closes, then buyer waives any rights he/she has to terminate the closing or receive penalties for failure to disclose.
 
From a title company’s perspective, PID disclosures are handled the same way MUD disclosures are handled currently. 
 
Review a Texas Realtors Memo With More Info on TREC Forms, Processes »
 
Editor's Note: A Public Improvement District is a special district created by a city or County under the authority of Chapter 372 or Chapter 382 of the Texas Local Code. The statute allows for a city or county to levy a special assessment against properties within the district to pay for improvements and/or maintenance. Failure to pay the assessments results in a foreclosable lien on the property.
 
Please see article below for more information on laws passed by the Texas Legislature effective next week beginning Sept. 1.
 

It's Not Too Late to Register for Tomorrow's Live Webinar: New Laws That Could Impact Your Operations Effective Sept. 1

TLTA | Aug. 25, 2021
Tomorrow, Thursday, Aug. 26, Steve Streiff, Chair of TLTA's Legislative Committee, and Aaron Day, Director of Government Affairs and Counsel for TLTA, will present a live webinar, 2021 Texas Legislative Wrap-Up: New Laws and Near Misses.
 
Hear the inside scoop on what happened during the recently ended 87th Session of the Texas Legislature. Find out about the new laws that will affect your title insurance business and when they go into effect, including those TLTA worked proactively to pass as well as those we worked with other interested parties to amend. Just as importantly, hear about the bills that didn’t pass, particularly those TLTA opposed and why they would have been detrimental to the title insurance industry. These seasoned experts will also share their insights on the legislative process in general and how it played out during this unique pandemic session.

Register for the Live Webinar Now »

Editor's Note: ICYMI, here's TLTA's 2021 Legislative Report, which also includes information on new laws and other industry news from the Texas Legislature's 87th Regular Session, which concluded in May. As you may be aware, the Texas Legislature is currently navigating the 2nd Called Session of the 87th Texas Legislature, and more special sessions are expected in the weeks and months ahead as lawmakers work on redistricting and other special issues called by Gov. Greg Abbott. While the issues important to our industry are not currently in play during these special sessions, we remain watchful and will alert you if there are legislative developments during the special sessions of which you should be aware.  


In addition to live webinars held throughout the year, you have access to our library of more than 80 On-Demand webinars and videos  covering the title industry topics you need to earn continuing education credits and stay ahead of the curve on the latest industry trends!