May 7, 2014
TREC Adopts Changes to Forms Addressing Title Policy
At its regular meeting on April 28, the Texas Real Estate Commission (TREC) adopted changes to several of their promulgated contract forms. Changes were made in the section addressing title policies and surveys — specifically, the Amendment of Areas and Boundaries Exception. The language in this section now includes a check box to elect purchase of the additional coverage, as well as determine which party will pay. For example, the One to Four Family Residential Contract (Resale), Section 6.A.(8) now reads:
The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements: ❑ (i) will not be amended or deleted from the title policy; ❑ (ii) will be amended to read, "shortages in area" at the expense of ❑ Buyer ❑ Seller.
You can review the changes to this form
here. Similar changes were also made to other forms, which you can learn more about
here. The effective date for mandatory use of these forms is June 1, 2014. However, voluntary use is possible now since the forms have been posted on the TREC website.
Nominate Someone to Serve on the TLTAPAC Board of Trsutees
The TLTAPAC Board of Trustees is now accepting nominations for 2014-2015. If you have an interest in serving a three-year term on the board or know someone who would make a good trustee, please fill out this form no later than Friday, May 9.
We need folks committed to our cause of continuing to enhance the title insurance industry's political influence at the Capitol and who can help us educate TLTA members on the importance of investing in the PAC. TLTAPAC Trustees raise and disburse funds to achieve the governmental affairs objectives of TLTA. They are responsible for educating other industry members in their areas of the state about the TLTAPAC and encouraging investments and participation at the grassroots level.
Make a Nomination >>
Submit Quarterly Withholding Report to TDI by May 15
New agent solvency rules require title agents to submit a copy of their quarterly withholding tax report and evidence that the taxes have been paid to the Texas Department of Insurance. The first report for the quarter that ended March 31 is due to TDI by May 15. This new requirement is part of Administrative Rule S.5, which you can view
here.
If a title agent is part of a professional employer organization, it may submit a copy of the payroll tax report the agent receives from the professional employer organization as the equivalent of a quarterly withholding tax report.
This report and evidence that the taxes have been paid should be submitted along with Form T-S5, which you can download
here. Submit your completed documentation to
[email protected] or:
Texas Department of Insurance
Title Examinations
P.O. Box 149104
Austin, TX
78714-9104
Register for These Upcoming Hot Topic Webinars!
TDI Audit Violations: A Focus on Compliance & Your Questions on Recent Changes
Wednesday, May 7 | 10 - 11:30 a.m.
Presented by:
Robert York, TDI Manager of Title Examinations
Brenda Nelson, Old Republic National Title Insurance Company
Ed Hill, Ed Hill & Company CPAs, LLC
Live Version |
On-Demand Version
On-Time & Error-Free TDI Experience Reporting
Tuesday, May 13 | 10 - 11:30 a.m.
Presented by:
Sylvia Freyling, Fidelity National Group
Nancy Waggoner, Republic Title of Texas, Inc.
Ed Hill, Ed Hill & Company, CPAs, LLC
Live Version |
On-Demand Version
Escrow Procedures - It Really IS All About the Money!
Thursday, May 22 | 10:30 - 11:30 a.m.
Presented by:
Denise Smith Holmes, Independence Title Company
Nancy Waggoner, Republic Title of Texas, Inc.
Live Version |
On-Demand Version
Water Rights in the Everyday Lives of Texans
Tuesday, May 20 | 10:30 - 11:30 a.m.
Presented by:
Charles R. Porter, Jr., St. Edward's University
Live Version |
On-Demand Version
TDI Quarterly Audit Results Published
The following is a summary of recent TDI audits, violations and enforcement actions from December 2013 through February 2014. Read TDI's complete summary of operations for the quarter or read the key statistics below, and be sure to register for today's webinar TDI Audit Violations: A Focus on Compliance & Your Questions on Recent Changes, where a panel of experts will discuss much of the information below.
Compliance Audits
TDI's goal is to comprehensively audit agencies at least once every two years. Through February, 537 out of the 575 licensed agents have been audited within the last two years, a 93.4% rate. Nineteen additional agencies have been audited within the last three years, and 19 new agencies are yet to be audited.
Commissioner Orders & Active Cases
From December 2013 through February 2014, the commissioner signed two orders resulting in fines or the surrender of escrow officer licenses. Through February, 57 cases remain active, including 27 cases involving the misappropriation of fiduciary funds.
Compliance Audit Results
Below are TDI’s most common audit findings from December 2013 through February 2014. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred.
NUMBER OF AGENCIES
CATEGORY
DESCRIPTION
36
Escrow Accounting
Outstanding checks not cleared timely
35
Texas Insurance Code
Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
26
Escrow Accounting
Every disbursement not supported by invoice or sufficient other evidence
22
Guaranty Files
Funds not disbursed or escheated to state.
15
Escrow Accounting
Disbursement sheets missing, incomplete or incorrect.