Sept. 14, 2022

In This Issue:

  • Reminder: Comments on TREC Form Revisions Generated by TREC Broker-Lawyer Committee Due Sept. 26
  • ICYMI – TLTA Judiciary Committee Update: Deeds Conveying Title to a Trust - Fifth Circuit Weighs In and Vacates Fugedi
  • Texans Among Title Professionals Nominated for ALTA's 2022-23 Board and Executive Committees
  • Registration for Texas Land Title Institute, Doc Prep 2022 Open Now

Reminder: Comments on TREC Form Revisions Generated by TREC Broker-Lawyer Committee Due Sept. 26

TLTA  | Sept. 14, 2022
The Texas Real Estate Commission at its August meeting proposed form revisions recommended by the Texas Real Estate Broker-Lawyer Committee. You can comment on these proposed changes until September 26. These proposed revisions and rules will be up for adoption at the next TREC Meeting on November 7.
  
Review Changes and Learn How to Submit Comments »
 

ICYMI – TLTA Judiciary Committee Update: Deeds Conveying Title to a Trust - Fifth Circuit Weighs In and Vacates Fugedi

Chance Perkins, TLTA Judiciary Committee Member  | Sept. 6, 2022
Most escrow officers have encountered the common scenario of a deed conveying title into a trust as opposed to the trustee of the trust. The underlying concern with such a deed is that it may be void or voidable for lack of a grantee based on a combination of the “a trust is not an entity in Texas” line of cases with the “a deed is void if the grantee is not in existence at the time of the execution of the deed” line of cases.

But up until 2021, no court had actually combined those two lines of cases to hold that a deed into a trust was void and did not convey title. That changed on March 31, 2021, when the federal District Court for the Southern District of Texas issued its opinion in Fugedi v. United Rentals (N.Am.) Inc., No. 3:19-CV-00249, 2021 WL 1220032 (Fugedi). Using those two lines of cases, the court found that a deed conveying title to Texas real property to a trust, as opposed to the trustee of the trust, is void. Worse still, the court also held that such a deed can never be corrected with either a material or non-material correction, and any attempted correction of such a deed is invalid.

Recognizing the extreme harm the Fugedi opinion could do to our industry, TLTA filed an Amicus Curiae Brief to the federal Fifth Circuit Court of Appeals on December 27, 2021, in support of reversing the District Court’s judgment and allowing the established practice of correcting such vesting issues via the Texas correction statutes (Texas Property Code §§ 5.027-5.030) to continue.
 
Read More About the Fifth Circuit's Ruling »
Review TLTA's Amicus Brief »
 
TLTA's Judiciary Committee, which is chaired by Leslie Johnson, is responsible for recommending to our board of directors TLTA's position on court decisions that could affect the defense of title companies and title agents.
 

Texans Among Title Professionals Nominated for ALTA's 2022-23 Board and Executive Committees

ALTA | Sept. 8, 2022
ALTA’s Nominating Committee is pleased to present the list of nomina­tions for the 2022-23 ALTA Board of Governors, as well as the Abstracters and Title Insurance Agents Executive Committee and the Title Insurance Underwriters Executive Committee. Nominations will be voted on during ALTA ONE, which will be held Oct. 11-14 in San Diego.

Review the Nominees » 

Registration for Texas Land Title Institute, Doc Prep 2022 Open Now

  

 
Texas Land Title Institute
Presented live Dec. 8-9, 2022
San Antonio
 
Designed for real estate attorneys, agency owners and advanced closers, the annual Texas Land Title Institute brings top title professionals to the beautiful Hyatt Regency Hill Country Resort for world-class training and networking. Institute is the go-to educational resource for advanced title professionals working to master some of our industry's most complicated challenges. 
 
Get up to speed on changes in the legal landscape
 
Network with our industry's top professionals
 
Complete continuing education hours
 
Register for Institute Now and Book a Hotel Room »
 
 
And don't miss our pre-Institute program
 
Title Insurance & Doc Prep:
Defining Issues and Closing the Deal
Presented live Dec. 7, 2022
San Antonio
 
Our popular Doc Prep program is designed to address title insurance questions that frequently arise in a closing and are presented to the lawyer representing a party. The speakers will address title insurance due diligence for the client and how to assure the best coverage and rates. Moreover, what if the insured does have a defect in title or an encumbrance – how should it be handled? Finally, this course provides an overview and practice tips for the preparation of legal documents to convey title, release encumbrances and cure title issues.
 
Register for Doc Prep Now »