LANDAMERICA TEXAS ENDORSEMENT GUIDE November 1, 2005 ... · Texas Endorsement Guide TEXAS ENDORSEMENTS AND OTHER INSURING FORMS – Alphabetic Order No. Name Procedural Rule Rate

LANDAMERICA

TEXAS ENDORSEMENT GUIDE

November 1, 2005

Researched and Compiled

by

Janet Minke

Beverley Ouellette

Bickford Shaw

Texas Endorsement Guide TEXAS ENDORSEMENTS AND OTHER INSURING FORMS – Alphabetic Order

No. Name Procedural

Rule Rate Rule Stat

CodePage

T-23 Access Endorsement P-54 R-30 0890 10T-26 Additional Insured Endorsement P-57 R-33 0893 12T-16 Aggregation Endorsement, Mortgagee Policy P-9b(13) R-11k 0883 68T-3 Area and Boundary Amendment – to T-1 or T-2 – Ins. VI P-2 R-16 0500 84T-3 Area and Boundary Amendment – to T-1R – Ins. VI P-2 R-16 0501 84T-3 Assignment of Lien/Mortgage – Instruction III P-9b(1)/(2) R-11a 0211 14T-27 Assignment of Rents/Leases Endorsement P-60 R-34 0894 16T-39 Balloon Mortgage Endorsement – simultaneous P-9b(10) R-11h 0411 18T-39 Balloon Mortgage Endorsement – subsequent P-9b(10) R-11h 0412 18T-3 Binder Extension – Instruction I P-16 R-13A 8021 20T-13 Binder on Interim Construction Loan, Mortgagee Title

Policy P-1cc & P-16 R-13A 8020 n/a

T-22 Commitment for Eminent Domain Proceedings, Owner Title Policy

P-14 R-23 n/a

T-7 Commitment for Title Insurance P-1cc & P-18 R-12 n/aT-7 Commitment for Title Insurance – to FDIC, etc. P-15 R-25 8042 n/aT-20 Commitment to Texas Department of Transportation –

Owner Title Policy P-14 R-23 8041 n/a

T-3 Completion of Improvements – Instruction II P-8/P-9a(3) R-15 0550 22, 24T-28 Condominium Endorsement P-9b(15) R-11m 0888 26T-25 Contiguity Endorsement P-56 R-32 0892 28T-3 Correction – Instruction IV 0400 30T-3 Correction of Amount of Insurance – Instruction IV 0900 30T-3 Down Date of Binder – Instruction VII P-9b(4) R-11c 0100 34T-3 Down Date of Construction Loan Policy – Instruction V P-9b(4) R-11c 0920 32T-3 Down Date of Owner Policy During Construction –

Instruction VIII P-9a(3) R-15 0940 36

T-36 Environmental Protection Lien Endorsement P-9b(9) R-11g 0810 38T-42 Equity Loan Mortgage Endorsement P-44 R-28A 0875 40T-42.1 Equity Loan Mortgage Endorsement, Supplemental

Coverage P-47 R-28B 0876 42

T-14 First Loss Endorsement P-9b(11) R-11i 0881 46T-34 Increased Value Endorsement P-9a(2) R-3c 0960 48T-15 Last Dollar Endorsement P-9b(12) R-11j 0882 50T-4R Leasehold Endorsement, Residential P-9z(1) 0821 56T-5 Leasehold Mortgagee Policy Endorsement P-9b(5) 0822 52T-4 Leasehold Owner Policy Endorsement P-9b(5) 0820 54T-3 Limited Coverage Junior Mortgagee Additional Coverage

– May also provide coverage by amendment of T-44 P-46B & E R-27B 0880 n/a

T-44 Limited Coverage Junior Mortgagee Policy and Combined Schedule, Texas Residential

P-46A & E R-27A 3297 n/a

T-45 Limited Coverage Junior Mortgagee Policy Down Date Endorsement, Texas Residential

P-46C & E R-27C 0879 58

T-46 Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement, Texas Residential

P-46D & E R-27D 0878 60

T-3 Limited Pre-Foreclosure Policy – Deletion of Arbitration – May also be deleted by amending T-40 or T-41

P-43A(8) n/a n/a

T-98 Limited Pre-Foreclosure Policy and Combined Schedule P-43A R-26 3295 n/aT-99 Limited Pre-Foreclosure Policy Down Date Endorsement P-43B R-26D 0850 62T-31 Manufactured Housing Endorsement P-9b(7) R-11e 0150 64T-31.1 Manufactured Housing Unit Endorsement, Supplemental

Coverage – Mortgagee Policy P-9b(7) R-11e 0151 66

Janet S. Minke Page 2 of 93 Last Revised: 11/16/05

Texas Endorsement Guide No. Name Procedural

Rule Rate Rule Stat

CodePage

T-31.1 Manufactured Housing Unit Endorsement, Supplemental Coverage – Owner Policy

P-9a(4) R-15 0152 66

T-38 Modification, Partial Release, Etc. - Mortgagee Policy of Title Insurance P-9.b.(3). Endorsement Form

P-9b(3) R-11b 0311 70

T-2 Mortgagee Policy of Title Insurance P-1dd R-4, etc. Multi n/aT-2R Mortgagee Policy of Title Insurance– Short Form

Residential P-1dd & P-51 R-4, etc. multi n/a

T-24 Non-imputation Endorsement P-55 R-31 0891 72T-1 Owner Policy of Title Insurance P-1bb R-3, etc. multi n/aT-1R Owner Policy of Title Insurance, Residential P-1bb & P-38 R-3, etc. multi n/aT-17 Planned Unit Development Endorsement – Simultaneous P-9b(14) R-11l 0887 74T-17 Planned Unit Development Endorsement - Single P-9b(14) R-11l 0884 74T-18.1 Reinsurance Agreement, Facultative P-10 n/a n/aT-21 Reinsurance Agreement, Tertiary n/a n/aT-21.1 Reinsurance Agreement, Tertiary Facultative (Type I) P-10 n/a n/aT-21.2 Reinsurance Agreement, Tertiary Facultative (Type II) P-10 n/a n/aT-18 Reinsurance Commitment n/a n/aT-19 Restrictions, Encroachments, Minerals Endorsement -

MTP P-50B R-29B 0886 76

T-19 Restrictions, Encroachments, Minerals Endorsement – MTP - Residential

P-50A R-29A 0885 76

T-19.1 Restrictions, Encroachments, Minerals Endorsement - OTP

P-50C R-29C 0889 78

T-43 Reverse Mortgage Endorsement, Texas P-45 0877 80T-35 Revolving Credit Endorsement P-9b(8) R-11f 0800 82T-30 Tax Amendment Endorsement – Rollback Taxes P-20 R-19 0700 86T-12 USA – Acquisition of Title Endorsement R-17 0600 88T-6 USA – Certificate of Title R-17 7000 n/aT-9 USA – Certificate of Title for Easements R-17 7000 n/aT-11 USA – Policy of Title Insurance R-3d 7050 n/aT-33.1 Variable Rate Mortgage – Negative Amortization Loan

Endorsement – no charge P-9b(6) R-11d/R-4 0143 92

T-33 Variable Rate Mortgage Loan Endorsement - $20 P-9b(6) R-11d 0140 90T-33 Variable Rate Mortgage Loan Endorsement – no charge P-9b(6) R-11d/R-4 0141 90T-33.1 Variable Rate Mortgage –Negative Amortization Loan

Endorsement - $20 P-9b(6) R-11d 0142 92


Texas Endorsement Guide TEXAS ENDORSEMENTS AND OTHER INSURING FORMS – Numeric Order

No. Name Procedural

Rule Rate Rule Stat

CodePage

T-1 Owner Policy of Title Insurance P-1bb R-3, etc. multi n/aT-1R Owner Policy of Title Insurance, Residential P-1bb & P-38 R-3, etc. multi n/aT-2 Mortgagee Policy of Title Insurance P-1dd R-4, etc. Multi n/aT-2R Mortgagee Policy of Title Insurance– Short Form

Residential P-1dd & P-51 R-4, etc. multi n/a

T-3 Area and Boundary Amendment – to T-1 or T-2 – Ins. VI P-2 R-16 0500 84T-3 Area and Boundary Amendment – to T-1R – Ins. VI P-2 R-16 0501 84T-3 Assignment of Lien/Mortgage – Instruction III P-9b(1)/(2) R-11a 0211 14T-3 Binder Extension – Instruction I P-16 R-13A 8021 20T-3 Completion of Improvements – Instruction II P-8/P-9a(3) R-15 0550 22, 24T-3 Correction – Instruction IV 0400 30T-3 Correction of Amount of Insurance – Instruction IV 0900 30T-3 Down Date of Binder – Instruction VII P-9b(4) R-11c 0100 34T-3 Down Date of Construction Loan Policy – Instruction V P-9b(4) R-11c 0920 32T-3 Down Date of Owner Policy During Construction –

Instruction VIII P-9a(3) R-15 0940 36

T-3 Limited Coverage Junior Mortgagee Additional Coverage – May also provide coverage by amendment of T-44

P-46B & E R-27B 0880 n/a

T-3 Limited Pre-Foreclosure Policy – Deletion of Arbitration – May also be deleted by amending T-40 or T-41

P-43A(8) n/a n/a

T-4 Leasehold Owner Policy Endorsement P-9b(5) 0820 54T-4R Leasehold Endorsement, Residential P-9z(1) 0821 56T-5 Leasehold Mortgagee Policy Endorsement P-9b(5) 0822 52T-6 USA – Certificate of Title R-17 7000 n/aT-7 Commitment for Title Insurance P-1cc & P-18 R-12 n/aT-7 Commitment for Title Insurance – to FDIC, etc. P-15 R-25 8042 n/aT-9 USA – Certificate of Title for Easements R-17 7000 n/aT-11 USA – Policy of Title Insurance R-3d 7050 n/aT-12 USA – Acquisition of Title Endorsement R-17 0600 88T-13 Binder on Interim Construction Loan, Mortgagee Title

Policy P-1cc & P-16 R-13A 8020 n/a

T-14 First Loss Endorsement P-9b(11) R-11i 0881 46T-15 Last Dollar Endorsement P-9b(12) R-11j 0882 50T-16 Aggregation Endorsement, Mortgagee Policy P-9b(13) R-11k 0883 68T-17 Planned Unit Development Endorsement – Simultaneous P-9b(14) R-11l 0887 74T-17 Planned Unit Development Endorsement - Single P-9b(14) R-11l 0884 74T-18 Reinsurance Commitment n/a n/aT-18.1 Reinsurance Agreement, Facultative P-10 n/a n/aT-19 Restrictions, Encroachments, Minerals Endorsement -

MTP P-50B R-29B 0886 76

T-19 Restrictions, Encroachments, Minerals Endorsement – MTP - Residential

P-50A R-29A 0885 76

T-19.1 Restrictions, Encroachments, Minerals Endorsement - OTP

P-50C R-29C 0889 78

T-20 Commitment to Texas Department of Transportation – Owner Title Policy

P-14 R-23 8041 n/a

T-21 Reinsurance Agreement, Tertiary n/a n/aT-21.1 Reinsurance Agreement, Tertiary Facultative (Type I) P-10 n/a n/aT-21.2 Reinsurance Agreement, Tertiary Facultative (Type II) P-10 n/a n/aT-22 Commitment for Eminent Domain Proceedings, Owner

Title Policy P-14 R-23 n/a

T-23 Access Endorsement P-54 R-30 0890 10


Texas Endorsement Guide No. Name Procedural

Rule Rate Rule Stat

CodePage

T-24 Non-imputation Endorsement P-55 R-31 0891 72T-25 Contiguity Endorsement P-56 R-32 0892 28T-26 Additional Insured Endorsement P-57 R-33 0893 12T-27 Assignment of Rents/Leases Endorsement P-60 R-34 0894 16T-28 Condominium Endorsement P-9b(15) R-11m 0888 26T-30 Tax Amendment Endorsement – Rollback Taxes P-20 R-19 0700 86T-31 Manufactured Housing Endorsement P-9b(7) R-11e 0150 64T-31.1 Manufactured Housing Unit Endorsement, Supplemental

Coverage – Mortgagee Policy P-9b(7) R-11e 0151 66

T-31.1 Manufactured Housing Unit Endorsement, Supplemental Coverage – Owner Policy

P-9a(4) R-15 0152 66

T-33 Variable Rate Mortgage Loan Endorsement - $20 P-9b(6) R-11d 0140 90T-33 Variable Rate Mortgage Loan Endorsement – no charge P-9b(6) R-11d/R-4 0141 90T-33.1 Variable Rate Mortgage – Negative Amortization Loan

Endorsement – no charge P-9b(6) R-11d/R-4 0143 92

T-33.1 Variable Rate Mortgage –Negative Amortization Loan Endorsement - $20

P-9b(6) R-11d 0142 92

T-34 Increased Value Endorsement P-9a(2) R-3c 0960 48T-35 Revolving Credit Endorsement P-9b(8) R-11f 0800 82T-36 Environmental Protection Lien Endorsement P-9b(9) R-11g 0810 38T-38 Modification, Partial Release, Etc. - Mortgagee Policy of

Title Insurance P-9.b.(3). Endorsement Form P-9b(3) R-11b 0311 70

T-39 Balloon Mortgage Endorsement – simultaneous P-9b(10) R-11h 0411 18T-39 Balloon Mortgage Endorsement – subsequent P-9b(10) R-11h 0412 18T-42 Equity Loan Mortgage Endorsement P-44 R-28A 0875 40T-42.1 Equity Loan Mortgage Endorsement, Supplemental

Coverage P-47 R-28B 0876 42

T-43 Reverse Mortgage Endorsement, Texas P-45 0877 80T-44 Limited Coverage Junior Mortgagee Policy and Combined

Schedule, Texas Residential P-46A & E R-27A 3297 n/a

T-45 Limited Coverage Junior Mortgagee Policy Down Date Endorsement, Texas Residential

P-46C & E R-27C 0879 58

T-46 Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement, Texas Residential

P-46D & E R-27D 0878 60

T-98 Limited Pre-Foreclosure Policy and Combined Schedule P-43A R-26 3295 n/aT-99 Limited Pre-Foreclosure Policy Down Date Endorsement P-43B R-26D 0850 62


Texas Endorsement Guide This Guide is designed to aid in determination of the types of endorsements available in Texas, when an endorsement may be offered, the underwriting requirements to be met for issuance of the endorsement and the premium for the endorsement, if applicable. Some endorsements are mandatory and others are issued only at the request of the proposed insured. Some transactions are out of the ordinary and make decisions about issuance of a requested endorsement difficult. In those situations, as always, please do not hesitate to call Regional Underwriting Counsel for assistance. In Texas, only endorsements and premium charges, if any, which have been promulgated by the Texas Department of Insurance maybe issued and collected. The underwriting guidelines set forth with each endorsement represent suggested underwriting requirements. Again, if the situation varies and you are uncomfortable with the request to issue a specific endorsement, do not hesitate to call Regional Underwriting Counsel. Since the title business is always changing, the information in this Guide is, of course, subject to change also. For each endorsement, you will find: A. A sample of the endorsement from the Basic Manual of Rules, Rates and Forms for the Writing of Title

Insurance in Texas (also referred to in this Guide as the “Basic Manual”). • Promulgated instructions appearing in the form will be bolded for added emphasis. • Additional instructions may be added in this special type style to assist in proper preparation.

B. The policy to which the endorsement may be attached and when it may be issued. C. Procedural Rule governing the issuance of the endorsement. D. Rate Rule governing the premium charge for the endorsement, if any. E. Underwriting guidelines and additional requirements, if any. F. Instructions for preparation of the endorsement, if it is necessary to add data to the form. G. When applicable, the form numbers of similar ALTA and/or CLTA forms.

WARNING: Do not advise a customer that any Texas endorsement form is “the same as” any other form. These similar endorsement form numbers are given for your reference only.


Texas Endorsement Guide

P-17. Electronically Produced Forms (a) Permission to Electronically Produce

It shall be permissible for a Company to computer generate or electronically produce any Texas promulgated form. If a Company elects to use electronically produced forms, the Company shall use the appropriate promulgated language for the relevant form as set forth in the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas. An "electronically produced form" shall be signed either with an original signature or by a safeguarded electronic signature as provided in subsection (e) of this rule and issued by the Title Insurance Agent or Direct Operation or Title Insurance Company preparing the form and shall state the name of the Title Insurance Company having liability under the title insurance form.

(b) Permissible Changes to Promulgated Forms (1) It shall not be necessary for an electronically produced form issued by a Company to contain:

(A) the facsimile corporate execution of the Title Insurance Company; or, (B) the facsimile corporate attest of the Title Insurance Company; or, (C) the facsimile corporate seal of the Title Insurance Company.

(2) With the permission of its Title Insurance Company, it shall be permissible for a company to make

the following non-substantive changes to an electronically produced form: (A) omit the promulgated blank for inserting an endorsement number; (B) omit the use of endorsement numbers if the Title Insurance Company elects not to

individually inventory endorsements; (C) add accounting information (such as, without limitation, county codes, statistical code

numbers, rate rule references, and premium amounts) to the top or bottom margin of an electronically produced form; and,

(D) format general identifying information to be printed in convenient locations. For purposes of this sub-paragraph, general identifying information includes such items as (i) name of Title Insurance Company; (ii) name or title of form; (iii) form "T-____ " number, if applicable; and, (iv) signature blanks for the Company.

(c) Directly Issued Policies. This rule shall not affect the requirement for countersignature of a Directly Issued Policy pursuant to Procedural Rule P-31, which policy may be computer generated or electronically produced. (d) Consumer Protection. The Company must comply with the provisions of the Electronic Signatures in Global and National Commerce Act, including the requirements for Consumer Disclosures set forth in Section 101 (c) of said act, and the Uniform Electronic Transactions Act, Texas Business and Commerce Code, Chapter 43, where applicable. (e) Electronic Safeguards. Information that is generated, scanned, or otherwise stored electronically must accurately reflect the information set forth in the document or record as of the time it was first generated in its final form and must remain unaltered and accessible for later reference and audit. (f) Document Retention. This rule shall not affect the requirements of document retention pursuant to Article 9.34, Texas Insurance Code and the rules promulgated thereunder, except that documents or records which are initially computer generated or electronically produced in conformity with this rule may be retained in that medium.



P-31. Authorized Execution of Directly Issued Policy. All directly issued policies of title insurance (authorized by Art. 9.34, Insurance Code, defined in Procedural Rule P-1.aa., and sometimes referenced "Home Office Issue") shall be countersigned, prior to delivery, by a bona fide officer or employee of the Title Insurance Company issuing the directly issued policy. Each employee or officer countersigning directly issued policies shall be employed at a designated office location in the State of Texas maintained by the issuing Title Insurance Company for the issuance of directly issued policies. Each Title Insurance Company shall file annually on or before January 31 of each calendar year a written designation of its office addresses with the Texas Department of Insurance, together with the name and position of each person or persons at each designated address it has authorized to countersign directly issued policies at such address. No person or entity may be authorized, designated or empowered to countersign directly issued policies for a Title Insurance Company until designated with the Texas Department of Insurance in compliance with this Rule P-31. For the purpose of this rule all directly issued policies must reflect original countersigned signatures and it is prohibited to affix facsimile or any other form of signature that is not the originally executed signature of a designated individual.

P-1. Definitions u. Residential real property

(1) Any real property which has improvements thereon designed principally for the occupancy of from one to four families (including individual units of condominiums and cooperatives) and either (a) situated in a platted subdivision of record, or (b) consisting of five acres or less, or

(2) Any real property which has improvements thereon designed principally for the occupancy of from

one to four families and (a) consisting of more than five acres but not more than 200 acres (b) used for agricultural production (c) by individual insureds

(according to the information known by the Company at the time of issuance of the policy of title insurance).

bb. Owner Policy - The Owner Policy of Title Insurance (Form T-1) or the Residential Owner Policy of Title Insurance - One-To-Four Family Residences (Form T-1R).

Any rule referring to the Owner Policy shall apply to both forms unless the Rule refers to the specific Form number. Unless a rule expressly requires the use of the Owner Policy of Title Insurance (Form T-1) a title insurance company may use the Residential Owner Policy of Title Insurance - One-To-Four Family Residences (Form T-1R) if the property has any improvements thereon designed for the occupancy of from one to four families.

P-38. RESIDENTIAL OWNER POLICY OF TITLE INSURANCE - ONE-TO-FOUR FAMILY RESIDENCES A Company shall only issue a Residential Owner Policy of Title Insurance - One-To-Four Family Residences (Form T-1R) on

• property that is Residential Real Property, and • the insured is a natural person(s) at the date the policy is issued.

In the application of this rule it is permissible to issue a Residential Owner Policy of Title Insurance (Form T-1R) prior to the construction of improvements provided that the Residential Owner Policy of Title Insurance (Form T-1R) is

• issued to a natural person, • in accordance with P-8.a.

In all other cases, the Company shall issue the Owner Policy (Form T-1) when issuing a policy to an owner.


Texas Endorsement Guide TIPS FOR USING THE BASIC MANUAL – AND THIS GUIDE

Unfortunately, the Texas Title Insurance Basic Manual is not very user-friendly. We have created this Guide in an attempt to make the process of finding and using Endorsements somewhat easier. Here are some tips that might help you find what you are looking for in this Endorsement Guide.

• At the front of the Guide are two charts, one alphabetical by insuring form name and the other numerical by insuring form number. On these charts, we have included all insuring forms, although only endorsements are addressed in the remainder of the Guide.

• In this Guide, endorsements are arranged in alphabetical order, according to the name of the form. • For each endorsement, we have included on a facing page both the Procedural Rules and the Rate Rules

associated with the form, as well as some brief underwriting guidelines and instructions on completion of the form itself. These underwriting guidelines are not designed to take the place of the formal guidelines provided to you in Bulletin form.

• All endorsements created using the “Blank” T-3 Endorsement form, are shown as separate endorsements, in alphabetical order using a form name based on the instructions.

• Refer to specific Underwriting Bulletins for more complete guidelines. Here are some tips that might help you find what you are looking for in the Basic Manual.

• Learn to use the Index in the front of the Basic Manual, especially when you are looking for insuring forms. Section II: Insuring Forms

• All insuring forms are located in Section II: Insuring Forms. o But, some of the forms in this section are used only by underwriters. o And, the Residential Real Property Affidavit – Form T-47 – which is not an insuring form is also in

this section. • The insuring forms are placed in the Basic Manual in the order in which they were adopted, not

alphabetical or form number order. • Several endorsements are accomplished by using the “Blank” or T-3 endorsement form, simply completing

it with the words needed to create the endorsement. The instructions (and words) appear in Section II – Insuring Forms section and are listed on the Index as “Endorsement Instructions.”

• The Commitment for Title Insurance – Form T-7 – does not include the language for Schedule D. See Procedural Rule P-21.

Section III: Rate Rules • Don’t be mislead by the title, not everything in this section is limited to rules about premiums. • Premiums for most mortgagee endorsements are under Rate Rule R-11, but some have separate rules. • Premiums for most owner endorsements are under Rate Rule R-15, but some have separate rules. • Payment of a Fee for Examination and/or Closing – see Procedural Rule P-22. • Division of Premiums between Title Insurance Agents and Title Insurance Companies – see P-23. • Payment for Services Rendered by a Title Insurance Company, etc. – see P-24.

Section IV: Procedural Rules • The P-1 Definitions are very important and some definitions also include procedural instructions. • Procedures for most endorsements are under Procedural Rule P-9a (owner policies) and P-9b (mortgagee

policies), but some have separate rules. o See Rate Rule R-13 for Binder Extension endorsements. o See Rate Rule R-3 for Increased Value endorsements.

• Procedures regarding deletion of the “subordinate liens and leases” language in a mortgagee policy appear in Procedural Rule P-11b.(8).

• Procedural Rule P-52 does not include Endorsements in the forms for which Pro Formas may be issued. Rules for determining the correct Amount of Insurance for policies:

• Owner Policies: Rate Rule R-3. • Mortgagee Policies: Rate Rule R-4.

o Mortgagee policy issued subsequent to a policy covering the same insured lien: Rate Rule R-6. o Mortgagee policy insuring a Texas Reverse Mortgage: Procedural Rule P-45 o Texas Residential Limited Coverage Junior Mortgagee Policy: Procedural Rule P-46.

• USA policies: Rate Rule R-17. • Limited Pre-Foreclosure Policy: Procedural Rule P-43.


Texas Endorsement Guide ACCESS ENDORSEMENT (T-23)

Attached to Policy No. ___________

Issued by

BLANK TITLE INSURANCE COMPANY

HEREIN CALLED COMPANY

The Company insures against loss or damage sustained by the insured if, at Date of Policy:

(i) the land does not abut and have both actual vehicular and pedestrian access to and from

[insert name of single street, road, or highway] (the “Street”), or (ii) the Street is not physically open.

This endorsement is made a part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. FORM T-23: Access Endorsement


Texas Endorsement Guide ACCESS ENDORSEMENT – Form T-23

Issuing the Form: This endorsement may be attached to any T-1 Owner or T-2 Mortgagee Title Insurance Policy insuring land that is not residential real property and on which improvements exist at the time the policy to which it is attached is issued. Underwriting Guidelines: • Verify that the proposed insured has requested this endorsement and determine with regard to which road(s)

the coverage is desired. o Only one road may be covered per endorsement. If assurances are desired with regard to multiple

roads, multiple endorsements may be issued. • Verify that the land to be insured is not residential real property. • An acceptable survey is required.

o Review the survey to determine that improvements currently exist on the property. o Review the survey to determine that the land to be insured has actual physical access to the road(s)

for which coverage is desired. • Additional examination and/or underwriting may be required.

o Examine title to determine that the owner of the land has a legal right of access to the road(s) for which coverage is desired.

o Add exceptions to Schedule B of the policy for any restrictions on vehicular and/or pedestrian access from the insured land to and from the road(s) for which coverage is desired.

o Add deletion language to Schedule B if you are unwilling to give all of the coverage provided by the endorsement.

Rate Rule: R-30 - $100 When the Access Endorsement (T-23) is issued with a Mortgagee Policy of Title Insurance (T-2) or Owner Policy (T-1) in accordance with Rule P-54, the premium for the Access Endorsement (T-23) shall be $100 for each policy. Procedural Rule: P-54 A Company may issue its Access Endorsement (T-23) on or after the date Rate Rule R-30 is effective to a Mortgagee Policy (T-2) or Owner Policy (T-1) on land which contains improvements and which is not residential real property, if its underwriting requirements are met and if it is paid the premium, if any, prescribed in Rate Rule R-30. The Company may add any exception to the endorsement that it considers, in its sole discretion, to be appropriate. The Company shall delete any insuring provision or portion thereof if it does not consider that risk acceptable. Any insured matter covered in the Access Endorsement (T-23) may be insured only by the use of this endorsement. A Company may not issue its Access Endorsement (T-23) on residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached. • Name of the street, road or highway for which coverage is desired.

Similar ALTA or CLTA endorsement forms

• CLTA 103.4 Easement—Access to Public Street (6-14-96) • ALTA 17 – Access and Entry (New in 2004)


Texas Endorsement Guide ADDITIONAL INSURED ENDORSEMENT (T-26)

Attached To and Made a Part of

Policy No. __________

Issued By


The policy is hereby amended by adding as a named insured therein:

(Insert name of additional insured) This endorsement does not extend the coverage of the policy to any later date than Date of Policy, nor does it impose any liability on the Company for loss or damage resulting from (1) failure of such added insured to acquire an insurable estate or interest in the land, or (2) any defect, lien or encumbrance attaching by reason of the acquisition of an estate or interest in the land by such added insured. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. FORM T-26: Additional Insured Endorsement


Texas Endorsement Guide ADDITIONAL INSURED ENDORSEMENT – Form T-26

Issuing the Form: This endorsement may be attached to any Owner Title Insurance Policy. Underwriting Guidelines: • Review the document purporting to convey title (and, in the case of item (b) of the rule, the prior written

agreement) to determine that the proposed “additional insured” falls within the guidelines of the procedural rule. • Remember that the premium must be collected before the endorsement is issued. Rate Rule: R-33 When the Additional Insured Endorsement (T-26) is issued with an Owner Policy in accordance with Rule P-57, the premium for the Additional Insured Endorsement (T-26) shall be 10% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00. Procedural Rule: P-57 A Company may issue its Additional Insured Endorsement (T-26) on or after the date that Rate Rule R-33 is effective to an Owner Policy by naming a person as an additional insured in the endorsement, if (1) its underwriting requirements are met, (2) it is paid the premium, if any, prescribed in Rate Rule R-33, and (3) the additional insured is

(a) the trustee or successor trustee of a Living Trust to whom the insured transfers the title after Policy Date, and/or the beneficiaries of the Living Trust, or

(b) any partner, member or stockholder that acquires the interests of the other owners of the insured in

accordance with the terms and provisions of a written agreement in effect at Date of Policy, or (c) a family partnership or family corporation solely composed of or owned by members of the

insured’s family and the insured.

Any matter covered in the Additional Insured Endorsement (T-26) may be insured only by the use of this endorsement. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Name of the additional insured


• CLTA 107.10 Additional Insured (9-10-93)


Texas Endorsement Guide Assignment of Lien (Endorsement Instruction III)

ENDORSEMENT T-3

Attached to and made a part of _______________________ Title Insurance Company Policy or Interim Construction Binder Number ________________, this ______ day of ___________, _____.

Said Mortgagee Policy is hereby amended to name as the Insured: [Insert Name of new lender according to the Assignment]. The lien described in Schedule A of said policy has been assigned to said named Insured by assignment dated the _____ day of ______________, 19 ___, at ___ __.M., and recorded in the Office of the County Clerk of ______________ County, Texas (here insert clerk’s file number or book and page of recording), and Schedule A of said policy is hereby amended to cover said assignment, and it is expressly stated that the effective date of said policy is changed to the date of this Endorsement. As of the date of this Endorsement, Company insures the insured against loss, if any, sustained by the insured under the terms of the policy if said lien is not a valid [first, second, etc.] lien against the property described in Schedule A of said policy, subject to the matters set forth in Schedule B, the terms and provisions of said policy and the following: (Here insert any exception necessary by reason of matters arising since the date of the Policy or delete the immediately preceding words “and the following:”) The Company insures that all standby fees, taxes and assessments by any taxing authority against the property described in Schedule A of said policy have been paid up to and including the year [Insert tax year through which taxes are shown “paid”] except subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, and except: (specify or delete the immediately preceding words “and except.”) This Endorsement shall be effective when the note or notes secured by the lien insured have been delivered to the Insured named herein. Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated. IN WITNESS HEREOF, the __________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. Attest: _________TITLE INSURANCE COMPANY

[SEAL] _________________________________ By: ________________________________ Secretary President Countersigned at ___________, Texas (Use Optional) ____________________________________ Authorized Countersignature (Location Discretionary) Endorsement Form T-3: General


Texas Endorsement Guide ENDORSEMENT – T-3

Use Upon Assignment Of Lien

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy when the insured lien has been assigned; however, this Endorsement may not be issued if the lien is secured by one-to-four family residential property, unless the mortgage is assigned to a governmental agency as defined in the applicable procedural rule. Underwriting Guidelines: • Search the title from the Policy Date through the date of the recording of the Assignment. • Exceptions are added to the Endorsement for matters discovered in the search. • Order and review a current Tax Certificate regarding standby fees, taxes and assessments. Rate Rule: R-11.a

Endorsement issued as provided in Rules P-9b(1) and P-9b(2) - The minimum Basic Premium Rate shall be charged for each Endorsement issued after the date of the original policy. In no event, however, shall such premium exceed 50% of the premium applicable to the original Mortgagee Policy under the Schedule of Basic Rates.

Procedural Rule: P-9.b.(1) or P-9.b.(2) 1) Assignment of Mortgage to Government Agencies - Where a Mortgagee Policy has been issued covering the lien

securing an indebtedness, and such indebtedness and lien have been subsequently sold, transferred and assigned to Government National Mortgage Association and/or Federal National Mortgage Association and/or Administrator of Veterans' Affairs and/or Secretary of Housing and Urban Development, as their names may be changed from time to time, the Company which issued the original policy may issue an Endorsement thereto to show the Government National Mortgage Association and/or Federal National Mortgage Association and/or Administrator of Veterans' Affairs and/or Secretary of Housing and Urban Development, or as their names may be changed from time to time as a party insured. As a condition to the issuance of the Endorsement, the Company may require a showing from the assignor that such assignor has not accelerated the maturity of the indebtedness, or if he has, that there has been a proper reinstatement of the obligation. It shall be permissible for the Company to show the current owner of the fee simple title to the property in the said Endorsement.

(2) Assignment of Mortgage to Others - Except as to those loans secured by one-to-four family residential properties, the Endorsement provided for in Rule P-9b(1) may also be issued to any assignees other than those set out in said Rule P-9b(1).

Endorsement Instruction III. Use Upon Assignment of Lien When a lien is assigned, and upon compliance with Rules P-9.b.(1) or P-9.b.(2) and R-11, the Company may issue the Endorsement by inserting therein: [see sample document, where the promulgated language has been inserted].

Completing the Form - Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached. • Date of Endorsement = Date the Assignment was recorded. • Insured = Party to whom loan is assigned, according to Assignment • Date of the Assignment • Recording reference for the Assignment, including County • Lien priority, for example if the mortgagee policy to which the endorsement is attached is insuring a first lien

(no exception to superior liens in Schedule B), insert “First” and if it is attached to a policy insuring a second lien, insert “Second” and so on.

• Additional Schedule B exceptions o Only insert exceptions to matters revealed by the title search that are “superior” to the lien insured. o If there are no additional superior matters, delete the words “and the following” from the paragraph.

• Insert the proper tax year. This endorsement works differently from commitments and policies. Instead of inserting the first year you are unwilling to insure, you insert the last year you are willing to insure. For example, if your Tax Certificate shows taxes paid through the 2003, you will insert 2003 in the blank. You may also add exceptions to specific unpaid taxes, if necessary. If no specific tax exceptions are added, delete the words “and except” from the paragraph.


• ALTA 10.1 Assignment and Datedown • CLTA 104.13 Assignment of Mortgage with Priority Coverage (10-21-95)


Texas Endorsement Guide ASSIGNMENT OF RENTS/LEASES ENDORSEMENT (T-27)

Attached to Policy No.

Issued by BLANK TITLE INSURANCE COMPANY

HEREIN CALLED THE COMPANY The Company hereby insures the insured against loss which the insured shall sustain by reason of:

(a) any defect in the execution of the document entitled referred to in paragraph __________ of Schedule B; and

(b) the existence, as shown by the public records, of any prior assignment of the lessor’s interest in the

lease or leases specified in such document, including any assignments of rents there under, other than as set forth in Schedule B.

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. [Witness clause optional] BLANK TITLE INSURANCE COMPANY

BY: _____________________________ Form T-27: Assignment of Rents/Leases Endorsement


Texas Endorsement Guide ASSIGNMENT OF RENTS AND LEASES ENDORSEMENT – Form T-37

Issuing the Form: This endorsement may be attached to any contemporaneously issued T-2 Mortgagee Title Insurance Policy insuring a Deed of Trust additionally secured by an assignment of rents and/or leases, provided the policy does not cover residential real property. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Verify that no previous assignment of rents and/or leases has been granted by the current or a prior owner,

unless such assignment has been released or was given as additional security for a loan which has been released.

o LandAmerica will treat a release which only describes the deed of trust as also releasing any assignment of rents and/or leases given as additional security for the same loan.

o If you are insuring a second lien on the property and there is an assignment of rents and/or leases in favor of the first lienholder, you should not issue/attach this endorsement to the second lien policy.

PROPOSED Rate Rule: R-34 - $100 When the Assignment of Rents/Leases Endorsement (T-34) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-60, the premium for each Assignment of Rents/Leases Endorsement (T-34) shall be $100. Procedural Rule: P-60 A Company may issue its Assignment of Rents and Leases Endorsement (T-27)

• on or after the date Rate Rule R-34 is effective • to a contemporaneously issued Mortgagee Policy (T-2) • if its underwriting requirements are met • and if it is paid the premium, if any, prescribed in Rate Rule R-34.

The Company shall delete any insuring provision or portion thereof if it does not consider that risk acceptable. Any insured matter covered in the Endorsement (T-27) may be insured only by the use of this endorsement. The Assignment of Rents/Leases Endorsement (T-27) may not be issued on residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Descriptive “name” of the document to be covered by the Endorsement, i.e. Assignment of Rents. • Schedule B paragraph number of the item excepting to the named document.

Similar ALTA or CLTA endorsement forms • CLTA 104.6 – Assignment of Rents or Leases


Texas Endorsement Guide BALLOON MORTGAGE ENDORSEMENT – T-39

Attached to Policy No. ___________________________

Issued by

___________________Title Insurance Company The Company insures the insured mortgagee against loss or damage by reason of:

(1) The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions therein which provide for a Conditional Right to Refinance and a change in the rate of interest as set forth in the Mortgage Rider.

(2) Loss of priority of the lien of the insured mortgage as security for the unpaid principal balance of

the loan, together with interest thereon, which loss of priority is caused by the exercise of the Conditional Right to Refinance and the extension of the loan term to the New Maturity Date set forth on the Rider and a change in the rate of interest, provided that all the conditions set forth in the Balloon Mortgage Rider have been met, the mortgagor remains the owner and occupant of the land, and there are no other liens, defects, and encumbrances, or other adverse matters affecting title arising subsequent to Date of Policy.

This endorsement does not insure against loss or damage based upon (a) usury or (b) any consumer credit protection or truth in lending law or (c) bankruptcy. This endorsement is made a part of the policy and is subject to all the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.

________________Title Insurance Company

By: _________________________________ Endorsement Form T-39: Balloon Mortgage


Texas Endorsement Guide BALLOON MORTGAGE ENDORSEMENT – Form T-39

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring a Deed of Trust including a balloon rider with a conditional right to refinance, provided the policy covers only residential real property. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review note and deed of trust for a balloon rider with conditional right to refinance. The lien as originally

created and described in the mortgagee policy must contain the balloon rider. Rate Rule: R-11.h - $25.00 or $50.00 Endorsement issued as provided in Rule P-9b(10) - A premium of $25.00 shall be charged for the issuance of the endorsement provided for in Rule P-9b(10) if the endorsement is issued at the time of the issuance of the mortgagee policy. A premium of $50.00 shall be charged for the issuance of the endorsement provided for in Rule P-9b(10) if the endorsement is issued subsequent to the issuance of the mortgagee policy. Procedural Rule: P-9.b.(10) Balloon Mortgage Endorsement - When a mortgagee policy of title insurance is to be issued on residential real property insuring a lien that contains a balloon rider, the Company may attach to the mortgagee policy endorsement Form T-39. The balloon rider must contain a conditional right to refinance. The lien as originally created and described in the mortgagee policy must contain the balloon rider. The Company must be paid the premium prescribed in Rate Rule R-11h for issuance of the endorsement. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached Similar ALTA or CLTA endorsement forms

• CLTA 111.9 FNMA 7 Year Balloon Mortgage—Variable Rate (6-8-90)


Texas Endorsement Guide Binder Extension (Endorsement Instruction I)

ENDORSEMENT T-3


The expiration date of said Interim Construction Binder is extended for a period of six months from the expiration date of the original Binder, or the expiration date of the last Endorsement extending said Binder; but in no event beyond thirty-six months from the expiration date of the Binder.

Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated. IN WITNESS HEREOF, the __________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature.

Attest: _________TITLE INSURANCE COMPANY




ENDORSEMENT – T-3 Use to Extend Mortgagee Title Policy Binder on Interim Construction Loan

Issuing the Form: This endorsement may be attached to any Mortgagee Title Policy Binder on Interim Construction Loan (Binder) dated not more than three years and six months prior to the issuance of the endorsement. Underwriting Guidelines: • The Binder itself expires one year from its date. Subsequent endorsements to extend the expiration date must

be issued chronologically and without gaps in coverage. • Multiple endorsements may be issued simultaneously, if necessary to avoid gaps in coverage.

o For example, if the Binder is dated January 1, 2004, the first Endorsement must be dated January 1, 2005; the second endorsement is dated July 1, 2005; the third is dated January 1, 2006, and so on.

• A maximum of six (6) endorsements extending the expiration date of the Binder may be issued. After this, the lender may purchase a Mortgagee Policy of Title Insurance if continued coverage is desired.

Rate Rule: R-13A. - $25.00 The original Binder may be extended for six (6) additional consecutive periods of six (6) months each, not to exceed thirty-six (36) months. A premium of $25.00 shall be charged for each consecutive six (6) month extension. Procedural Rule: P-16 . . . . . Interim Binder shall not be issued on vacant lots or tracts, except in connection with the immediate construction of improvements thereon, nor shall such Interim Binder be issued after completion of improvements to which it relates, but this does not prohibit the issuance of Extensions after completion of improvements. . . . . .. Endorsement Instruction I. Use to Extend Mortgagee Title Policy Binder on Interim Construction Loan When the Company is called upon to extend the expiration date of a Mortgagee Title Policy Binder on Interim Construction Loan, and after complying with Rules R-13 and P-16, it shall issue the Endorsement inserting therein: [see sample document – the promulgated language has been inserted]. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = First endorsement = 1 year from date of Binder; subsequent endorsements at 6-month intervals.

Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide Completion of Improvements – Owner Policy (Endorsement Instruction II.A.)

ENDORSEMENT T-3


1. Exceptions No. ___________________________ in said Owner Policy are hereby deleted. 2. Item #2 is intentionally deleted.

OR 2. The company affirms the amendment of the exception as to area and boundaries of the above

numbered policy, such amendment to be effective as of the date of this Endorsement.” OR

No survey furnished or premium paid for amendment of area & boundaries.

2. Exception as to area and boundaries of the above numbered policy is hereby eliminated save and except any shortages in area.

Survey furnished & premium paid; area & boundaries previously amended in owner policy.

Survey furnished & premium paid; area & boundaries not previously amended in owner policy.

3. Item #3 is intentionally deleted. OR

3. The company affirms the coverage provided in the T-19.1 Endorsement issued in connection with

the above numbered policy, such coverage to be effective as of the date of this Endorsement.

No T-19.1 previously issued and none requested.

The following subparagraph(s) of this endorsement are deleted: ___. OR

3. The T-19.1 Endorsement in the form attached hereto is made a part of the above numbered policy.

T-19.1 previously issued with OTP; current coverage requested.

The following subparagraph(s) of this endorsement are deleted: ___.

Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated.

T-19.1 requested and premium paid; not previously issued with OTP.

IN WITNESS HEREOF, the __________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. Attest: _________TITLE INSURANCE COMPANY

[SEAL] _________________________________ By: ________________________________ Secretary President Countersigned at ___________, Texas ____________________________________ (Use Optional) Authorized Countersignature (Location Discretionary) Endorsement Form T-3: General



Use Upon Completion of Improvements – Owner Policy

Issuing the Form This endorsement may be attached to any Owner Policy of Title Insurance, upon the completion of improvements (the cost of which was included in the policy), upon the request of the insured. Underwriting Guidelines: • Search title through the date of completion. Obtain Underwriter Approval before issuing this endorsement if the title search

reveals any evidence of, or you have personal knowledge of, unpaid bills for labor and/or materials. • Secure execution by Owner and Contractor of an appropriate Completion Affidavit, including a statement that all work is

completed and all bills for labor or materials are paid in full. • If amendment of the area and boundary exception is requested, obtain a satisfactory survey, showing the location of all

improvements, and collect the applicable premium. o Review the survey and add exceptions to matters shown on the survey, as applicable.

• If T-19.1 coverage is requested, obtain a satisfactory survey, showing the location of all improvements, and if the premium was not paid at the time the policy was issued, collect the applicable premium.

o Compare the results of the title search and survey with the insuring paragraphs in the form and make underwriting decisions regarding deletion of insuring paragraphs.

o Add deletion language to the endorsement, if applicable. Rate Rule: There is no charge for this Endorsement. If the insured desires amendment of the area and boundary exception (survey coverage), the charge for such amendment is according to Rule R-16. If the insured desires T-19.1 coverage, the charge (if not previously paid) is according to Rule R-29C. Procedural Rule: P-8.a.(2)

Upon the completion of the improvements on said property, the owner's acceptance thereof, and satisfactory evidence to the Company that all bills for labor and materials have been paid in full, the "Liability" paragraph and the exception in Schedule B set out in "a(1)" of this rule may be eliminated from the policy by the issuance of the promulgated Endorsement form containing the applicable promulgated language covering said elimination.

In addition to the above elimination, if a satisfactory survey made after the completion of improvements is furnished to the Company, survey coverage may be provided as set out in Rules R-16 and P-2, using the promulgated Endorsement form and containing the applicable promulgated language.

In addition, if the Company’s underwriting requirements have been met, the T-19.1 Endorsement may be issued or coverage affirmed as set out in Rules R-29 and P-50, using the promulgated Endorsement form and containing the applicable promulgated language. Endorsement Instruction II. Use Upon Completion of Improvements Upon the completion of improvements and after compliance with Rule P-8.a.(2) and P-50 …and Rule R-16 and R-29 … the following language may be inserted into the Endorsement: [see sample document – the promulgated language has been inserted].

2. Only in the event there is a specific request that the exception as to area and boundaries, etc. be amended and when a current, acceptable survey, showing all completed improvements, is furnished to the Company, the following language …. may be inserted and shown as No. 2 of the Endorsement form. [see sample document – the promulgated language has been inserted]

3. Only in the event there is a specific request that the T-19.1 Endorsement be issued and when the Company’s underwriting requirements have been met, the following language contained in the applicable subdivision below may be inserted and shown as No. 3 of the Endorsement form. [see sample document – the promulgated language has been inserted] The types of exception for either #2 or #3 above …. are as follows:

• In the event no amendment is to take place/no T-19.1 coverage, no # 2/3 will be included. • Area and boundaries exception previously amended or T-19.1 coverage previously issued • Area and boundaries exception NOT previously amended or T-19.1 NOT previously issued

Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = Date (following completion) through which title has been searched. • Survey and/or T-19.1 Coverage

o No request for amendment of the area and boundary exception or T-19 = delete paragraph 2 and/or3. o Request, survey and premium received – insert appropriate paragraph 2 and/or 3 – see sample; add

appropriate exceptions or deletions. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide Completion of Improvements – Mortgagee Policy (Endorsement Instruction II.B.)

ENDORSEMENT T-3


1. Exception No. ____________ of Schedule B and the Pending Disbursement Clause in said policy are hereby deleted.

2. Said policy is hereby amended so that its coverage as to all loss or damage against mechanics’ and

materialmen’s liens shall relate to the date of this Endorsement instead of the date of said policy. 3. Item #2 is intentionally deleted.

OR 3. The company affirms the amendment of the exception as to area and boundaries of the above

numbered policy, such amendment to be effective as of the date of this Endorsement.” OR

No survey furnished for amendment of area & boundaries.

3. Exception as to area and boundaries of the above numbered policy is hereby eliminated save and except any shortages in area.

Survey furnished; area & boundaries previously amended in owner policy.

Survey furnished; area & boundaries not previously amended in owner policy.

4. Item #4 is intentionally deleted. OR

4. The company affirms the coverage provided in the T-19 Endorsement issued in connection with the

above numbered policy, such coverage to be effective as of the date of this Endorsement.

No T-19 previously issued and none requested.

The following subparagraph(s) of this endorsement are deleted: ___. OR

4. The T-19 Endorsement in the form attached hereto is made a part of the above numbered policy.

T-19 previously issued with MTP; current coverage requested.

The following subparagraph(s) of this endorsement are deleted: ___.

Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated.

T-19 requested and premium paid; not previously issued with MTP.

IN WITNESS HEREOF, the __________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. Attest: _________TITLE INSURANCE COMPANY

[SEAL] _________________________________ By: ________________________________ Secretary President Countersigned at ___________, Texas ____________________________________ (Use Optional) Authorized Countersignature (Location Discretionary) Endorsement Form T-3: General



Use Upon Completion of Improvements – Mortgagee Policy

Issuing the Form This endorsement may be attached to any Mortgagee Policy of Title Insurance, upon the completion of improvements (the cost of which was included in the policy), upon the request of the insured. Underwriting Guidelines: • Search title through the date of completion. Obtain Underwriter Approval before issuing this endorsement if the title search

reveals any evidence of, or you have personal knowledge of, unpaid bills for labor and/or materials. • Secure execution by Owner and Contractor of an appropriate Completion Affidavit, including a statement that all work is

completed and all bills for labor or materials are paid in full. • If amendment of the area and boundary exception is requested, obtain a satisfactory survey, showing the location of all

improvements. o Review the survey and add exceptions to matters shown on the survey, as applicable.

• If T-19 coverage is requested, obtain a satisfactory survey, showing the location of all improvements, and if the premium was not paid at the time the policy was issued, collect the applicable premium.

o Compare the results of the title search and survey with the insuring paragraphs in the form and make underwriting decisions regarding deletion of insuring paragraphs.

o Add deletion language to the endorsement, if applicable. Rate Rule: There is no charge for this Endorsement, nor for amendment of the area and boundary exception. If the insured

desires T-19 coverage, the charge (if not previously paid) is according to Rule R-29A or B. Procedural Rule: P-8. b.(2)

Upon the completion of the improvements on said property, the owner's acceptance thereof, and satisfactory evidence to the Company that all bills for labor and materials have been paid in full, the exception plus the "Pending Disbursement" paragraph in "b(1)" above may be eliminated from the policy and mechanic's and materialmen's lien coverage amended by issuance of the promulgated Endorsement form containing the applicable promulgated language covering said elimination and amendment.

In addition to the above elimination, if a satisfactory survey made after the completion of improvements is furnished to the Company, survey coverage may be provided as set out in Rules R-16 and P-2, using the promulgated Endorsement form and containing the applicable promulgated language.

In addition, if the Company’s underwriting requirements have been met, the T-19 Endorsement may be issued or coverage affirmed as set out in Rules R-29 and P-50, using the promulgated Endorsement form and containing the applicable promulgated language. Endorsement Instruction II. Use Upon Completion of Improvements Upon the completion of improvements and after compliance with Rule P-8.b.(2), the following language may be inserted into the Endorsement: [see sample document – the promulgated language has been inserted]. 3. Only in the event there is a specific request that the exception as to area and boundaries, etc., be amended and when a current, acceptable survey, showing all completed improvements, is furnished to the Company, the following language …. may be inserted and shown as No. 3 of the Endorsement form. [see sample document – the promulgated language has been inserted] 4. Only in the event there is a specific request that the T-19 Endorsement be issued and when the Company’s underwriting requirements have been met, the following language contained in the applicable subdivision below may be inserted and shown as No. 4 of the Endorsement form [see sample document – the promulgated language has been inserted] The types of exception for either #3 or #4 above …. are as follows:

• In the event no amendment is to take place/no T-19 coverage, no # 3/4 will be included. • Area and boundaries exception previously amended or T-19 coverage previously issued • Area and boundaries exception NOT previously amended or T-19 NOT previously issued.


• Policy Number of the policy to which this endorsement is attached • Date = Date (following completion) through which title has been searched. • Survey Coverage

o No request for amendment of the area and boundary exception = delete paragraph 3. o Request, survey and premium received – insert appropriate paragraph 3 – see sample; add appropriate

exceptions and/or deletions. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide CONDOMINIUM ENDORSEMENT (T-28)

Attached to Policy No. _________________

Issued by

BLANK TITLE INSURANCE COMPANY HEREIN CALLED THE COMPANY

The Company insures the insured against loss or damage sustained by reason of:

1. The failure of the unit identified in Schedule A and its common elements to be part of a condominium within the meaning of the condominium statutes of the jurisdiction in which the unit and its common elements are located. 2. The failure of the documents required by the condominium statutes to comply with the requirements of the statutes to the extent that such failure affects the title to the unit and its common elements. 3. Present violations of any restrictive covenants which restrict the use of the unit and its common elements and which are contained in the condominium documents, except violations relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not excepted in Schedule B. The restrictive covenants do not contain any provisions which will cause a forfeiture or reversion of title. 4. The priority of any lien for charges and assessments at Date of Policy provided for in the condominium statutes and condominium documents over the lien of any insured mortgage identified in Schedule A. 5. The failure of the unit and its common elements to be entitled by law to be assessed for real property taxes as a separate parcel. 6. Any obligation to remove any improvements which exist at Date of Policy because of any present encroachments or because of any future unintentional encroachment of the common elements upon any unit or of any unit upon the common elements or another unit. 7. The failure of title by reason of a right of first refusal to purchase the unit and its common elements which was exercised or could have been exercised at Date of Policy.

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. [Witness clause optional] BLANK TITLE INSURANCE COMPANY

BY: _____________________________ Form T-28: Condominium Endorsement


Texas Endorsement Guide CONDOMINIUM ENDORSEMENT – Form T-28

Issuing the Form: This endorsement may be attached to a contemporaneously issued mortgagee policy (T-2 or T-2R) insuring a loan secured by a condominium unit. Underwriting Guidelines: • Verify that the proposed insured has requested this endorsement. • Verify that the land to be insured is residential real property. • Review the condominium declaration to verify that it complies with the statutory requirements set out in Chapter

81 (for condo regimes created before 01-01-04) and/or Chapter 82 (for all condominiums) of the Texas Property Code.

o Pay particular attention to provisions relating to priority of the lien for dues and assessments relative to the type of lien you are to insure.

• Compare the results of the title search and survey with the insuring paragraphs in the form and make underwriting decisions regarding deletion of insuring paragraphs.

• Add deletion language to Schedule B of the policy, if applicable. PROPOSED Rate Rule: R-11.m. $50 Endorsement as provided in Rule P-9.b (15) – When the Condominium Endorsement (T-28) is issued with a Mortgagee Policy in accordance with Rule P-9b (15), the premium for each Condominium Endorsement (T-28) shall be $50.00. Procedural Rule: P.9.b (15) A Company may issue its Condominium Endorsement T-28 • to a contemporaneously issued Mortgagee Policy • on or after the date Rate Rule R-11.m is effective, • if its underwriting requirements are met and if it is paid the premium, if any, described in Rate Rule 11.m. The Company may delete any insuring provision if it does not consider that risk acceptable. The Company may not issue the Condominium Endorsement (T-28) if the land covered by the policy is not residential real property. Any insured matter that may be covered by a Condominium Endorsement (T-28) may be insured only by the use of the Condominium Endorsement (T-28). This endorsement may not be issued in conjunction with the Planned Unit Development Endorsement (T-17). Note: Notice that you may not issue both a T-17 and a T-28. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached Similar ALTA or CLTA endorsement forms • ALTA 4 (same as CLTA 115.1) (03-27-02) – Condominium


Texas Endorsement Guide CONTIGUITY ENDORSEMENT (T-25)

Attached to Policy No. __________

Issued by


HEREIN CALLED THE COMPANY

The Company hereby insures against loss or damage sustained by the insured by reason of:

(1) the failure [of the _______boundary line of Parcel A] of the land to be contiguous to [the ________boundary line of Parcel B]

[for more than two parcels, continue as follows: “; of [the ______boundary line of Parcel B] of the land to be contiguous to [the _______boundary line of Parcel C]” and so on until all contiguous parcels described in the policy have been accounted for]; or

(2) the presence of any gaps, strips or gores separating any of the contiguous boundary lines

described above. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. FORM T-25: Contiguity Endorsement


Texas Endorsement Guide CONTIGUITY ENDORSEMENT – Form T-25

Issuing the Form: This endorsement may be attached (at the time of issue, but not later) to any T-1 Owner or T-2 Mortgagee Title Insurance Policy insuring land that is not residential real property. Underwriting Guidelines:

o Verify that the proposed insured has requested this endorsement and determine with regard to which insured tracts

o Coverage with regard to multiple tracts may be made on a single endorsement. o All tracts for which coverage is desired must be insured in the policy to which the endorsement is

attached. • Verify that the land to be insured is not residential real property. • An acceptable survey is required.

o All tracts to be covered by the endorsement must be depicted on a single survey. o Review the survey to determine that the tracts for which coverage is desired are contiguous.

• Additional examination and/or underwriting may be required. o Add exceptions to Schedule B of the policy for any portions of the tracts which are not contiguous.

Rate Rule: R-32 $100 When the Contiguity Endorsement (T-25) is issued with a Mortgagee Policy (T-2) or an Owner Policy (T-1) in accordance with Rule P-56, the premium for the Contiguity Endorsement (T-25) shall be $100 for each policy. Procedural Rule: P-56 A Company may issue its Contiguity Endorsement (T-25) on or after the date that Rate Rule R-32 is effective to a concurrently issued Mortgagee Policy (T-2) or Owner Policy (T-1) on land which is not residential real property;

if title to each tract described in the Contiguity Endorsement (T-25) is insured by the policy; if the Company receives a survey acceptable to it; if its underwriting requirements are met and if it is paid the premium, if any, prescribed in Rate Rule R-32.

The Company may add any exception to the endorsement that it considers, in its sole discretion, to be appropriate. Any matter covered in the Contiguity Endorsement (T-25) may be insured only by the use of this endorsement. A Company may not issue its Contiguity Endorsement on residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • A description of the common lines of the contiguous tracts


• CLTA 116.4 Contiguity of Parcels (6-14-96) • ALTA Form 19 Contiguity – Multiple Parcel (new for 2004) • ALTA Form 19.1 Contiguity – Single Parcel (new for 2004)


Texas Endorsement Guide Correction of Policy or Binder (Endorsement Instruction IV.)

ENDORSEMENT T-3


(Simply type in this area a description of the matter to be corrected, for example: Schedule A, Item 1 of the above numbered Owner Policy of Title Insurance is hereby corrected to read $100,000.






Correction of Policy or Binder Issuing the Form: This endorsement may be attached to any Mortgagee or Owner Policy or Interim Construction Binder. Underwriting Guidelines: • To be used only for correcting errors in preparation of the policy or binder. • May not be used to change the policy or binder as to any facts existing after date of issue. • May not be used to extend the coverage of the policy or binder. Rate Rule: None. There is no premium charge for the endorsement. Procedural Rule: None Endorsement Instruction IV. Correction of Policy or Binder The use of Endorsement T-3 in the Basic Manual is permitted for the purpose of stating a correction in the policy or binder as to typographical error, omission or addition of materials relating to facts that existed at date of issue that clearly does not change the policy or binder as to any facts existing after date of issue nor extend its coverage beyond the point that should have been covered by the proper issue of a policy or binder. Additional Uses: This endorsement form may be issued for several different purposes. The specific uses, instructions, promulgated language and guidelines are found under the following endorsements elsewhere in this Guide:

• Assignment of Lien • Binder Extension • Completion of Improvements – Owner Policy or Mortgagee Policy • Down Date Binder or Mortgagee Policy (in connection with construction advances) • Down Date Owner Policy (to increase coverage during construction) • Survey Exception Amendment (Amend Exception to Area and Boundaries, Etc.)

Similar ALTA or CLTA endorsement forms – None.


Texas Endorsement Guide Down Date Construction Loan Policy (Endorsement Instruction V)

ENDORSEMENT T-3


(a) Said policy is hereby amended so that its coverage shall relate to date of this Endorsement instead

of the date of the policy, subject to: 1. The exceptions shown in Schedule B of said policy and in any prior Endorsement to said

policy, 2. Matters which would be shown by a correct survey and inspection of the premises

subsequent to the date of said policy, 3. Any and all liens arising by reason of unpaid bills or claims for work performed or material

furnished in connection with the improvements being placed upon the subject land: The Company does, however, insure against loss, if any, sustained by the insured under the terms of the policy, if any such liens have been filed with the County Clerk of the County in which such property is located prior to the date of this Endorsement, except those liens set forth in Schedule B of said policy or in any prior Endorsement to said policy, and except: (Specify or delete immediately preceding words “and except”.),

4. The following additions to Schedule B of said policy: (Specify or delete this paragraph

and include as exceptions only those additional matters which the Company has determined are superior to the lien described in Schedule A, Item 4, of said policy.),

5. The following matters which affect the title to the estate or interest in the land described or

referred to in Schedule A of said policy, but Company insures the insured against loss, if any, sustained by the insured under the terms of the policy if such matters are not subordinate to the lien described in Schedule A, Item 4, of said policy: (Specify or delete this paragraph).

(b) The coverage under said policy as of the date hereof is $_[insert total of construction

advances to date of endorsement]__.

Nothing herein contained shall be construed as extending or changing the effective date of the aforesaid policy or interim construction binder, unless otherwise expressly stated. IN WITNESS HEREOF, the __________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. Attest: _________TITLE INSURANCE COMPANY

[SEAL] _________________________________ By: ________________________________ Secretary President Countersigned at ___________, Texas (Use Optional) ____________________________________ Authorized Countersignature (Location Discretionary)

Endorsement Form T-3: General



Use Only In Connection With Interim Construction Advances Subsequent To Issuance of Form T-2 Mortgagee Title Policy

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy including the cost of the construction of improvements. Underwriting Guidelines: • Verify that a request has been made for this endorsement in connection with a periodic construction advance. • Search title through the requested date of the endorsement. Obtain underwriting advice with regard to any

matters of concern arising during the period of the search. Rate Rule: R-11.c - $50.00 Endorsement issued as provided in Rule P-9b(4) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(4). Procedural Rule: P-9.b.(4) – Date Down Endorsement When a Mortgagee Title Policy is issued in the manner provided in Rule P-8.b. and construction advances are being made subsequent to such issue, upon request and compliance with Rule R-11c, the title insurance company which issued the Mortgagee Title Policy may extend the effective date of the said Mortgagee Title Policy and state the amount of coverage then existing under the policy, by issuing the Endorsement provided for in Form T-3, Instruction V. Items (a) 1, 2 and 3 of the Endorsement may not be deleted. Endorsement Instruction V. Use Only in Connection with Interim Construction Advances Subsequent to Issuance of Form T-2 Mortgagee Title Policy. A. As to Mortgagee Title Policies issued before October 1, 1991. See the promulgated language contained in the Basic Manual. B. As to Mortgagee Title Policies issued after September 30, 1991. When a Company is called upon to endorse a Mortgagee Title Policy at the time of periodic construction advances in the same transaction, and upon compliance with Rule P-9.b.(4), said Company may issue the Endorsement by inserting the following applicable provisions therein: [see sample document – the promulgated language has been inserted]. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = Date requested by insured – through which title has been searched. • Paragraph 3 – Except to any documents evidencing unpaid liens for labor or material discovered during title

search (Mechanic’s Lien Affidavits). If none were found, delete the words “and except” from this paragraph. • Paragraph 4 – Except to any matters discovered during the title search that are superior to the insured lien.

If none were found, delete this paragraph. • Paragraph 5 – Except to any matters discovered during the title search that are subordinate to the insured

lien. If none were found, delete this paragraph. • Coverage under the policy = Total of all construction advances made through the date of the Endorsement.



Texas Endorsement Guide Down Date Interim Construction Loan Binder (Endorsement Instruction VII)

ENDORSEMENT T-3


Said Binder is hereby amended so that the date and time set forth in the first paragraph thereof shall be the

_______ day of ____________________________, 19____, at _________________ o’clock _____.M., subject to:

1. The exceptions shown in Schedule B of said Binder and in any prior Endorsement to said Binder, 2. Matters which would be shown by a correct survey and inspection of the premises subsequent to

the date of said Binder, 3. The following additions to Schedule B-Part 1 of said Binder: (Specify or delete this paragraph

and include as exceptions only those additional matters which the Company has determined are superior to the lien described in Schedule A of said Binder.),

4. The following additions to Schedule B-Part 2 of said Binder (which affect the title to the estate or

interests in the land described or referred to in Schedule A of said Binder, but Company agrees to insure the insured against loss, if any, sustained by the insured under the terms of the Policy to be issued if such matters are not subordinate to the lien described in Schedule A of said Binder): (Specify or delete this paragraph.).

Notwithstanding the limitation in paragraph 4 of Schedule B-Part 1 of said Binder, the Company agrees to insure against loss, if any, sustained by the insured under the terms of the policy to be issued if such liens have been filed with the County Clerk of the County in which such property is located prior to the date of this Endorsement except those liens set forth in Schedule B of said Binder or in any prior Endorsement to said Binder, and except: (Specify or delete the words “and except” immediately preceding.).







Use Only In Connection With Interim Construction Advances Subsequent to Issuance of Form T-13 Mortgagee Title Policy Binder on Interim Construction Loan.

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy Binder on Interim Construction Loan. Underwriting Guidelines: • Verify that a request has been made for this endorsement in connection with a periodic construction advance. • Search title through the requested date of the endorsement. Obtain underwriting advice with regard to any

matters of concern arising during the period of the search. Rate Rule: R-11.c - $50.00 Endorsement issued as provided in Rule P-9b(4) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(4). Procedural Rule: P-9.b.(4) – Date Down Endorsement When a Mortgagee Title Policy Binder on Interim Construction Loan is issued as provided in Procedural Rule P-16, and construction advances are being made subsequent to such issue, upon request and compliance with Rule R-11.c, the title insurance company which issued the Mortgagee Title Policy Binder on Interim Construction Loan may extend the effective date of the said Mortgagee Title Policy Binder on Interim Construction Loan by issuing the Endorsement provided for in Form T-3, Instruction VII. Items (a) 1 and 2 of the Endorsement may not be deleted. Endorsement Instruction VII. Use Only in Connection with Interim Construction Advances Subsequent to Issuance of Form T-13 Mortgagee Title Policy Binder on Interim Construction Loan When a Company is called upon to endorse a Mortgagee Title Policy Binder on Interim Construction Loan at the time of periodic construction advances in the same transaction, and upon compliance with Rule P-9.b.(4), said Company may issue the Endorsement by inserting the following applicable provisions therein: [see sample document – the promulgated language has been inserted]. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = Date requested by insured – through which title has been searched. • Paragraph 3 – Except to any matters discovered during the title search that are superior to the insured lien.

If none were found, delete this paragraph. • Paragraph 4 – Except to any matters discovered during the title search that are subordinate to the insured

lien. If none were found, delete this paragraph. • “Notwithstanding” Paragraph – Except to any documents evidencing unpaid liens for labor or material

discovered during title search (Mechanic’s Lien Affidavits). If none were found, delete the words “and except” from this paragraph.



Texas Endorsement Guide Down Date Owner Policy During Construction (Endorsement Instruction VIII)

ENDORSEMENT T-3


(a) Said Policy is hereby amended so that its coverage shall relate to the date of this Endorsement

instead of the date of the Policy, subject to:

1. The exceptions shown in Schedule B of said Policy and in any prior Endorsement to said Policy,

2. Matters which would be shown by a correct survey and inspection of the premises subsequent to the date of said Policy,

3. Any and all liens arising by reason of unpaid bills or claims for work performed or material furnished in connection with the improvements being placed upon the subject land. The Company does, however, insure the insured against loss, if any, sustained by the insured under the terms of the policy, if any such liens have been filed with the County Clerk of the County in which such property is located prior to the date of this Endorsement except those liens set forth in Schedule B of said Policy or in any prior Endorsement to said Policy, and except: (Specify or delete the words “and except” immediately preceding.),

4. The following additions to Schedule B of said Policy: (Specify or delete this paragraph.).

(b) The coverage under said Policy as of the date hereof is $__[insert total of construction advances to date of endorsement]_.







Use Only in Connection with Increase in Coverage Subsequent to Issuance of Form T-1 Owner Title Policy in the Manner Provided in Rule P-8.a..

Issuing the Form: This endorsement may be attached to any Owner Title Insurance Policy including the cost of the construction of improvements. Underwriting Guidelines: • Verify that a request has been made for this endorsement in connection with a periodic construction advance. • Search title through the requested date of the endorsement. Obtain underwriting advice with regard to any

matters of concern arising during the period of the search. Rate Rule: R-15 - $50.00 A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Procedural Rule P-9.a.(3) or Procedural Rule P-9.a.(4). Procedural Rule: P-9.a.(3) When an Owner Policy is issued in the manner provided in Rule P-8.a, and the coverage thereunder increases as provided in Rule R-2, Rule P-8 or otherwise as provided in these Rules, upon request and compliance with Rule R-15, the title insurance company which issued the Owner Policy may extend the effective date of the said Owner Policy and state the amount then existing under such Policy by issuing the endorsement provided for in Form T-3, Instruction VIII. Items (a) 1, 2 and 3 of the endorsement may not be deleted. Instruction VIII. Use Only in Connection with Increase in Coverage Subsequent to Issuance of Form T-1 Owner Title Policy in the Manner Provided in Rule P-8.A. When a Company is called upon to endorse its Owner Title Policy to evidence increase in coverage thereunder, and upon compliance with Rule P-9.a.(3), said Company may issue the Endorsement by inserting the following applicable provisions therein: [see sample document – the promulgated language has been inserted] Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = Date requested by insured – through which title has been searched. • Paragraph 3 – Except to any documents evidencing unpaid liens for labor or material discovered during title

search (Mechanic’s Lien Affidavits). If none were found, delete the words “and except” from this paragraph. • Paragraph 4 – Except to all other matters discovered during the title search. If none were found, delete this

paragraph. • Coverage under the policy = Total of all construction advances made through the date of the Endorsement.



Texas Endorsement Guide ENDORSEMENT T-36

Attached to Policy No. __________________________

Issued by

__________________________ TITLE INSURANCE COMPANY

The insurance afforded by this endorsement is only effective if the land is used or is to be used primarily for residential purposes. The Company insures the insured against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over:

(a) any environmental protection lien which, at the Date of Policy, is recorded in those records established under state statutes at the Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge, or filed in the records of the clerk of the United States district court for the district in which the land is located, except as set forth in Schedule B; or

(b) any environmental protection lien provided for by any state statute in effect at the Date of Policy,

except environmental protection liens provided for by the following state statutes: [Insert here the applicable statutes (pre-printed if using a pre-printed form from your Underwriter), for example:

TEX. HEALTH & SAFETY CODE sec. 361.194 TEX. HEALTH & SAFETY CODE sec. 342.007, 243.008; TEX. LOCAL GOV'T CODE sec. 214.0015(b), (d) and (e), 214.001; TEX NATURAL RESOURCES CODE sec. 134.150]

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsement, nor does it increase the face amount thereof.


Texas Endorsement Guide Form T-36: ENVIRONMENTAL PROTECTION LIEN

Issuing the Form: This endorsement may be issued with a Mortgagee Title Insurance Policy insuring residential property only. Underwriting Guidelines: Verify that lender's instructions require this endorsement. Rate Rule: R-11.g - $25.00 Endorsement issued as provided in Rule P-9b(9) ----A premium of $25.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(9). Procedural Rule: P-9.b.(9) When a mortgagee policy is to be issued covering the lien securing an indebtedness against land used or to be used primarily for residential purposes, the Company may, if it considers the risk insurable, attach to the policy endorsement Form T-36 with any applicable exceptions in paragraph (b) upon the payment of the premium prescribed in Rate Rule R-11(g). Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Paragraph (b) – Consult your Underwriter and insert here the applicable statutes (pre-printed if using a pre-

printed form from your Underwriter). See Sample form for examples. Similar ALTA or CLTA endorsements forms

• ALTA 8.1 Environmental Protection Lien (3-12-88)


Texas Endorsement Guide EQUITY LOAN MORTGAGE ENDORSEMENT T-42

Attached to and made a part of

____________________Title Insurance Company

Mortgagee Policy No. __________________ dated the _____day of ________, _____.

Issued by

BLANK TITLE INSURANCE COMPANY The policy is hereby amended as follows: 1. The following new Subsection (h) is inserted in Section 1 of the Conditions and Stipulations:

(h) “consumer credit protection law”: any applicable federal or state regulation, law or constitutional provision relating to consumer credit protection. For purposes of the policy and paragraph 5 of the Exclusions from Coverage, consumer credit protection law includes, but is not limited to, the provisions of Subsections (a)(6) and (g) of Section 50, Article XVI, Texas Constitution and any statutory or regulatory requirements for a mortgage made pursuant to Subsection (a)(6).

2. Notwithstanding the specific provisions of paragraph 5 of the Exclusions from Coverage relating to consumer credit protection laws, the company insures the insured against loss, if any, sustained by the insured under the terms of the policy because of invalidity or unenforceability of the lien of the insured mortgage by reason of the following:

(a) The failure of the insured mortgage to be created under a written agreement with the consent of each owner of the estate or interest described in Schedule A and each owner’s spouse, as set forth in Subsection (a)(6)(A) of Section 50, Article XVI, Texas Constitution.

(b) The land being homestead property designated for agricultural use as provided by statutes governing property tax, as set forth in

Subsection (a)(6)(I) of Section 50, Article XVI, Texas Constitution. (c) The indebtedness secured by the lien of the insured mortgage on the land not being the only debt secured by a valid lien on the

land at the time the extension of credit is made pursuant to the insured mortgage unless the other debt was made for the purposes described by Subsections (a)(l) through (a)(5) of Section 50 of Article XVI, Texas Constitution, as set forth in Subsection (a)(6)(K) of Section 50, Article XVI, Texas Constitution.

(d) The extension of credit secured by the lien of the insured mortgage closing before the first anniversary of the closing date of any

other extension of credit described by Subsection (a)(6) of Section 50 of Article XVI, Texas Constitution and secured by a valid lien on the land, as set forth in Subsection (a)(6)(M)(ii) of Section 50, Article XVI, Texas Constitution.

(e) The failure of the insured mortgage to contain a disclosure that the extension of credit is the type of credit defined by Section

50(a)(6), Article XVI, Texas Constitution, as set forth in Subsection (a)(6)(Q)(vi) of Section 50(a)(6), Article XVI, Texas Constitution.

3. Provided the insured mortgage secures a home equity line of credit, the Company insures the Insured that any disbursements under the home equity line of credit made subsequent to the date of this policy as provided in the insured mortgage shall be deemed to have been made as of the date of this policy and such disbursements and accrued interest shall have the same priority as any advances made as of the date of this policy, except as to (i) bankruptcies affecting the estate or interest described on Schedule “A” hereof prior to the date of any such advance or disbursement; and (ii) taxes, costs, charges, damages and other obligations to the government secured by statutory liens arising or recorded subsequent to the date of the Policy. 4. Except as provided in paragraph 2 above, the Company does not insure against invalidity or unenforceability of the lien of the insured mortgage, which arises out of the transaction evidenced by the insured mortgage and is based on any consumer credit protection law. 5. This endorsement does not insure against invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, arising out of usury or truth in lending laws. This endorsement when countersigned below by an Authorized Countersignature is made a part of said Policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy matters: (i) Insuring provisions; (ii) Exclusions from Coverage; (iii) Schedule “B” Exceptions; (iv) the Conditions and Stipulations; and (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the effective date of the policy and/or any prior endorsements; or (ii) increase the face amount of the policy. Form T-42: Texas Equity Loan Mortgage Endorsement Form


Texas Endorsement Guide EQUITY LOAN MORTGAGE ENDORSEMENT T-42

Issuing the Form: This endorsement MUST be attached to any Mortgagee Title Insurance Policy insuring a home equity lien. Underwriting Guidelines: • Follow the guidelines set out in your most current Underwriting Bulletin regarding insuring home equity liens. • During the closing phase of the transaction, the T-42 Checklist (provided by your Underwriter) should be

marked-up and signed by the escrow officer responsible for the closing. o The coverage offered by the optional subparagraph “f” is only available if all of the promulgated

requirements are met, as evidenced by the signed checklist. o It is anticipated that the coverage offered by some of the subparagraphs contained in paragraph 2 of

this endorsement will be not be available for every transaction. The signed checklist will be used by the policy typist to determine which paragraphs are to be deleted, if any.

Rate Rule: R-28A When a Mortgagee Policy of Title Insurance (T-2) is issued and the Equity Loan Mortgage Endorsement (T-42) is issued in accordance with Rule P-44, the premium for the Equity Loan Mortgage Endorsement (T-42) shall be 10% of the Basic Premium Rate. Procedural Rule: P-44 A. When a Mortgagee Policy of Title Insurance (T-2) is to be issued insuring the lien securing an extension of

credit made pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution, the Company shall attach to the Mortgagee Policy of Title Insurance (T-2) the Equity Loan Mortgage Endorsement (T-42).

B. The Company may delete any provision of paragraph 2 of the Equity Loan Mortgagee Endorsement (T-42) if it does not consider the additional risk insurable.

C. The Company may add subparagraph (f) to paragraph 2 of the Equity Loan Mortgage Endorsement (T-42) if it considers the risk insurable, provided that the following requirements are met: (1) The promissory note secured by the insured mortgage and the insured mortgage must be executed by

the borrower(s)/grantor(s) at the office of a title company and the insured mortgage must be acknowledged by the borrower(s)/grantor(s) at the office of a title company. For purposes of this subparagraph C(l), "the office of a title company" shall mean the leased or owned Texas office location(s) of: (a) a title insurance company; or, (b) a direct operation; or, (c) a title insurance agent; or, (d) an attorney conducting the attorney's business in the name of a title insurance company or direct operation or title insurance agent where the attorney and the attorney's bona fide employees who close transactions are licensed as escrow officers as provided in Article 9.42.C, Texas Insurance Code.

(2) Subparagraph (f) of paragraph 2 of the Equity Loan Mortgage Endorsement (T-42) must read as follows "(f) The extension of credit secured by the lien of the insured mortgage being closed at a location

other than the office of the lender, an attorney at law, or a title company, as set forth in Subsection (a)(6)(N) of Section 50, Article XVI, Texas Constitution."

D. The Company may not provide Express Insurance (pursuant to P-39) as to matters set forth in the Equity Loan Mortgage Endorsement (T-42).


• Policy Number of the policy to which this endorsement is attached • Date of the policy to which this endorsement is attached • Review the T-42 Checklist provided by the closing office and add subparagraph (f), if the promulgated

requirements have been met. Review the T-42 Checklist provided by the closing office and delete paragraphs from the Endorsement as necessary. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide SUPPLEMENTAL COVERAGE EQUITY LOAN MORTGAGE ENDORSEMENT (T-42.1)

Attached to and made a part of Blank Title Insurance Company

Mortgagee Policy No. _____________ (herein the “Policy”)

Issued By BLANK TITLE INSURANCE COMPANY

THIS ENDORSEMENT IS VOID AND OF NO EFFECT UNLESS IT IS ATTACHED TO A MORTGAGEE POLICY OF TITLE INSURANCE (FORM T-2), WHICH CONTAINS AN EQUITY LOAN MORTGAGE ENDORSEMENT (FORM T-42) ATTACHED TO THE MORTGAGEE POLICY. In this endorsement, the term “owner” shall refer to each owner of the land described in Schedule “A” of this Mortgagee Policy. Date of Endorsement: _______________ 1. Notwithstanding the specific provisions of paragraph 5 of the Exclusions from Coverage relating to consumer credit protection laws

and the provisions of the Equity Loan Mortgage Endorsement (T-42), the Company insures the insured against loss, if any, sustained by the insured under the terms of the policy because of invalidity or unenforceability of the lien of the insured mortgage pursuant to Section 50(a)(6), Article XVI, Texas Constitution, arising solely by reason of one or more of the following:

(a). The insured mortgage and promissory note secured thereby being executed at an office of the Company or its Title

Insurance Agent before the specific calendar date stated in written closing instructions from the insured name in Schedule A delivered to the Company or its Title Insurance Agent prior to the execution of the insured mortgage and promissory note.

(b). Any loan proceeds received by the Company or its Title Insurance Agent in connection with the extension of credit secured

by the lien of the insured mortgage being disbursed by the Company or its Title Insurance Agent sooner than the fourth calendar day after the insured mortgage and promissory note secured thereby are executed.

(c). A document expressly purporting to evidence an election not to rescind the extension of credit secured by the lien of the

insured mortgage being executed by the owner and spouse, if any, of the owner, in the presence of an escrow officer of the Company or its Title Insurance Agent on or before the date that the insured mortgage and promissory note secured thereby were executed.

(d). Failure of the Company or its Title Insurance Agent to provide the owner with a copy of all documents related to the

extension of credit secured by the lien of the insured mortgage that were executed by the owner at the office of the Company or its Title Insurance Agent on the date that the owner executed the insured mortgage and the promissory note secured thereby.

(e). The Company or its Title Insurance Agent collecting or disbursing any fees not shown on the final settlement statement

prepared by the Company or its Title Insurance Agent and sent to the lender named on the settlement statement prior to the execution of the insured mortgage and the promissory note secured thereby.

(f). Blanks (other than signature lines, if any, for execution by the lender) in the following instruments left to be filled in when

executed by the owner in an office of the Company or its Title Insurance Agent: (i) an instrument prepared by the Company or its Title Insurance Agent, (ii) the purported written acknowledgment as to the fair market value, (iii) the insured mortgage, (iv) the promissory note secured thereby, or (v) affidavits of compliance with Section 50(a)(6), Article XVI, Texas Constitution.

(g). The failure of the written document purporting to be a written acknowledgment as to the fair market value of the land to have

attached, at the time of execution of such written document by the owner, a purported appraisal or a purported evaluation of the fair market value of the land. However, the Company does not insure that the purported written acknowledgment or the purported appraisal or purported evaluation complies with Subsection (a)(Q)(ix) or Subsection (h) of Section 50, Article XVI, Texas Constitution or any laws or regulations relating to the subject matter of said subsections.

(h). The failure of the written document purporting to be an acknowledgment as to the fair market value to be executed by the

owner on the date that the insured mortgage and promissory note secured thereby are executed by the owner. (i). Part of the land described in Schedule A not being the homestead of the owner. (j). Title to other land which, according to the public records, appears to be vested in the name of the owner as shown on

Schedule A and which is not described in Schedule A and which is located in the same county in which the land described in Schedule A is located, being subject at Date of Policy to a mortgage executed by the owner, recorded in the public records, which discloses that it secures an extension of credit made pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution.

(k). Title to other land which, according to the public records, appears to be vested in the name of the owner as shown on

Schedule A and which is not described in Schedule A and which is located in the same county in which the land described in Schedule A is located, having been subject to a mortgage executed by the owner, recorded in the public records, which disclosed that it secured an extension of credit made pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution, that was closed within one year prior to Date of Policy.


Texas Endorsement Guide (l) Failure of the Company or its Title Insurance Agent to provide the owner a copy of the final settlement statement prepared

by the Company or its Title Insurance Agent itemizing the actual fees, points, interest, costs and charges collected or disbursed by the Company or its Title Insurance Agent at least one calendar day before the business day or subsequent calendar day that the owner executed the insured mortgage and the promissory note secured thereby. As used in this paragraph (l), the term business day shall have the meaning assigned to such term by the Texas Finance Commission and/or the Texas Credit Union Commission pursuant to the authority granted such agencies by sections 11.308 and 15.413 of the Texas Finance Code, respectively.

2. This Endorsement does not insure against invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, arising out

of usury or truth in lending laws. 3. Except as provided in paragraph 1 above and except as provided in the Equity Loan Mortgage Endorsement (T-42), the Company

does not insure against invalidity or unenforceability of the lien on the insured mortgage, which arises out of the transaction evidenced by the insured mortgage and is based on any consumer credit protection law.

4. This Endorsement does not represent or insure that a Title Insurance Agent of the Company is the agent of the Company other than

for issuance of title insurance policies, as provided by applicable law. This Endorsement when countersigned below by an Authorized Countersignature is made a part of said Policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy matters: (i) Insuring provisions; (ii) Exclusions from Coverage; (iii) Schedule “B” Exceptions; (iv) the Conditions and Stipulations; (v) the Equity Loan Mortgage Endorsement (T-42) and all of the terms thereof, except as it may be modified by deletion of any subparagraph of paragraph 2 thereof; and (vi) any other prior endorsements. Except as stated herein, this Endorsement does not: (i) extend the effective date of the policy and/or any prior endorsements; or (ii) increase the face amount of the policy. Authorized Countersignature: _______________________________________________ By: _____________________________________________ (Signature) Title: ____________________________________________ Printed Name: ____________________________________

SUPPLEMENTAL COVERAGE EQUITY LOAN MORTGAGE ENDORSEMENT (T-42.1) Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring a home equity lien. Underwriting Guidelines: • Follow the guidelines set out in your most current Underwriting Bulletin regarding insuring home equity liens. • During the closing phase of the transaction, the T-42.1 Checklist (provided by your Underwriter) should be

marked-up and signed by the escrow officer responsible for the closing. o It is anticipated that the coverage offered by some of the subparagraphs contained in paragraph 1 of

this endorsement will be not be available for every transaction. The signed checklist will be used by the policy typist to determine which paragraphs are to be deleted, if any.

Rate Rule: R-28.B When a Mortgagee Policy of Title Insurance (T-2) is issued and the Equity Loan Mortgage Endorsement (T-42) is issued in accordance with Rule P-44 and the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) is issued in accordance with Rule P-47, the premium for the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) shall be 15% of the Basic Premium Rate. Procedural Rule: P-47 A. General Requirements: When a Mortgagee Policy of Title Insurance (T-2) is to be issued insuring the lien securing an extension of credit made pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution, the Company may attach the Mortgagee Policy of Title Insurance (T-2) the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the Company considers the risk insurable and the Company complies with this Procedural Rule P-47. The general requirements and limitations for issuance of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) are as follows: (1) The Company shall not attach the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) to the Mortgagee Policy of

Title Insurance (T-2) unless: (a) The Equity Loan Mortgage Endorsement (T-42) is attached to said Mortgagee Policy of Title Insurance; and, (b) The Company has complied with the provisions of Procedural Rule P-44 concerning the attachment of the Equity Loan

Mortgage Endorsement (T-42) to the Mortgagee Policy of Title Insurance (T-2). (2) The Company may delete any provision of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if

it does not consider the additional risk insurable. The following language may be placed along side each lettered sub-paragraph reference contained in paragraph 1 (one) of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) which the Company determines to delete:


Texas Endorsement Guide "Item ___ of paragraph 1 (one) of this Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) is hereby deleted."

The Company shall complete the blank with the appropriate sub-paragraph letter of paragraph 1 (one) of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the above format is utilized.

(3) The Company shall not provide Express Insurance (pursuant to P-39) as to matters set forth in the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1), whether or not the Company issues T-42.1.

(4) The Company must delete subparagraphs (a) through (h) and subparagraph (l) of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if: (a) the insured mortgage and the promissory note secured thereby are not executed at the office of a title company in

accordance with Procedural Rule P-44(c)(1); or, (b) the Company deletes subparagraph 2(f) of the Equity Loan Mortgage Endorsement (T-42). In order to evidence the deletion required by this subsection of P-47.A.(4), the following language may be stated on the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) in place of sub-paragraphs (a) through (h) and subparagraph (l) of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1). The following language may be used:

"Sub-paragraphs (a) through (h) and subparagraph (l) of paragraph 1 (one) of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) are hereby deleted in their entirety."

B. Specific Endorsement Paragraph Requirements

The requirements and limitations applicable for each numbered insuring provision of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) are set forth in items 1 (one) through 12 (twelve) below: (1) Signature Before Specified Date. The Company must delete subparagraph (a) of paragraph 1 of Supplemental Coverage

Equity Loan Mortgage Endorsement (T-42.1) if: (a) written instructions are not furnished by the insured to the Company or its Title Insurance Agent prior to the

execution of the insured mortgage and the promissory note secured thereby; (b) the written instructions do not state a specific calendar date that constitutes the earliest date for execution of the

insured mortgage and the promissory note secured thereby. (2) Loan Proceeds Disbursement Before Fourth Day. The Company must delete subparagraph (b) of paragraph 1 of

Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if: (a) the Company or its Title Insurance Agent does not disburse all loan proceeds received by the Company or its Title

Insurance Agent; or (b) any of the loan proceeds received by the Company or its Title Insurance Agent are disbursed sooner than four

calendar days after the insured mortgage and promissory note are executed. (3) Execution of Election Not to Rescind. The Company must delete subparagraph (c) of paragraph 1 of Supplemental

Coverage Equity Loan Mortgage Endorsement (T-42.1) if a document purporting to evidence an election not to rescind the extension of credit secured by the lien of the insured mortgage is executed in the presence of an escrow officer at an office of the Company or its Title Insurance Agent on or before the date that the insured mortgage and the promissory note secured thereby are executed.

(4) Document Copies. The Company must delete subparagraph (d) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the Company or its Title Insurance Agent do not provide each owner of the land with a copy of all documents related to the extension of credit secured by the lien of the insured mortgage that were executed by the owner at an office of the Company or its Title Insurance Agency on the date that the owner executed the insured mortgage and the promissory note secured thereby.

(5) Fees. The Company must delete subparagraph (e) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if: (a) any fees are collected or disbursed by the Company or its Title Insurance Agent and said fees are not shown on

the final settlement statement which was prepared by the Company or its Title Insurance Agent and executed by the owner and the spouse, if any, of the owner; or

(b) no preliminary (unexecuted) settlement statement is requested from the Company or its Title Insurance Agent, by the lender named on the final settlement statement, prior to execution of the insured mortgage and promissory note by the owner or the spouse, if any, of the owner; or

(c) a preliminary (unexecuted) settlement statement was requested by and sent to the lender, and the fees on the final settlement statement executed by the owner, or the spouse, if any, of the owner exceed the amount of fees on the final (unexecuted) settlement statement sent to the lender prior to execution of the insured mortgage and promissory note secured thereby.

(6) Blanks in an Instrument. The Company must delete subparagraph (f) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if either (a) or (b) below occurs: (a) There are any blanks in an instrument left to be filled in when executed by the owner of the land in an office of the

Company or its Title Insurance agent, and: (i) the instrument was prepared by the Company or its Title Insurance Agent, or (ii) the instrument is: (a) the purported written acknowledgment as to the fair market value; (b) the insured

mortgage; (c) the promissory note secured thereby; or, (d) affidavits of compliance with Section 50(a)(6), Article XVI, Texas Constitution.

(b) There are any blanks in an instrument left to be filled in when executed by the owner of the land in any of the following instruments when same are delivered to the Company or its Title Insurance Agent: (i) the purported written acknowledgment as to the fair market value; (ii) the insured mortgage; (iii) the promissory note secured thereby; or, (iv) affidavits of compliance with Section 50(a)(6), Article XVI, Texas Constitution.

(7) Attachment of Appraisal or Evaluation. The Company must delete subparagraph (g) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the insured does not furnish to the Company or its Title Insurance Agent prior to execution of the insured mortgage and the promissory note secured thereby: (a) a document purporting to be written acknowledgment as to the fair market value of the land; and (b) a purported appraisal or evaluation which is attached to the purported written acknowledgment.

(8) Signature of Acknowledgment of Fair Market Value. The Company must delete subparagraph (h) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if:


Texas Endorsement Guide (a) the purported written acknowledgment as to the fair market value is not provided by the insured to the Company

or its Title Insurance Agent prior to the execution of the insured mortgage or the promissory note secured thereby; or

(b) the purported written acknowledgment is not executed by the owner at an office of the Company or its Title Insurance Agent on the date that the insured mortgage and the promissory note secured thereby are executed.

(9) No Land In Excess of Homestead Allotment. The Company must delete subparagraph (i) of paragraph 1 (one) of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if: (a) or (b) below is true: (a) The Company does not receive a satisfactory affidavit from each owner of the land, and that owner's spouse, stating that:

(i) all of the land is the homestead of the owner and that owner's spouse; and, (ii) no portion of the land is non-homestead property of the owner or owner's spouse; and (iii) the owner of the land, and that owner's spouse do not claim other land as homestead, unless that other land is

described in the affidavit. (b) The Company does not receive one of the following:

(i) a satisfactory surveyor's certificate or letter from a Texas Licensed Registered Professional Surveyor, stating the exact amount of acreage or square footage of the land and such other facts as may be required by the Company, including whether or not the land is located within the boundaries of an incorporated municipality; or,

(ii) a computation of the acreage or square footage of the land made pursuant to a software program designed for calculation of the acreage or square footage of the land and computer generated drawings of the boundaries of the land pursuant to entry of the boundary description calls.

(10) No Other Land With a Home Equity Mortgage. The Company must delete subparagraph (j) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the Company does not receive a satisfactory affidavit from each owner of the land and that owner's spouse stating: (a) the owner and the owner's spouse, if any, do not have or claim any other land as homestead for tax or other purposes

except: (i) the land described in Schedule A of the Commitment for Title Insurance; and (ii) other land described in the affidavit; and,

(b) any business operated by the owner or the spouse of the owner, if any, and situated upon land owned or leased by the owner or owner's spouse is not subject to an extension of credit pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution; and,

(c) the residence, owned or leased by the owner or owner's spouse, if any, at which the owner and the owner's spouse live is not subject to an extension of credit pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution.

The Company may add the phrase "or in an adjoining county" after the phrase "described in Schedule A is located" in subparagraph (j) of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if (i) the land is located within the boundaries of an incorporated municipality; (ii) the municipality is located in more than one county; and, (iii) the Company considers the risk insurable.

(11) No Other Land With Released Home Equity Mortgage Within Past Twelve Months. The Company must delete subparagraph (k) of paragraph 1 of Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the Company does not receive a satisfactory affidavit from each owner of the land and that owner's spouse stating: (a) the owner and the owner's spouse, if any, do not have or claim any other land as homestead for tax or other purposes

except: (i) the land described in Schedule A of the Commitment for Title Insurance; and (ii) other land described in the affidavit; and,

(b) any business operated by the owner or the spouse of the owner, if any, and situated upon land owned or leased by the owner or owner's spouse has not been subject to an extension of credit pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution, closed within one year prior to Date of Policy; and,

(c) the residence, owned or leased by the owner or owner's spouse, if any, at which the owner and the owner's spouse live has not been subject to an extension of credit pursuant to Subsection (a)(6) of Section 50, Article XVI, Texas Constitution, closed within one year prior to Date of Policy.

The Company may add the phrase "or in an adjoining county" after the phrase "described in Schedule A is located" in subparagraph (k) of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if (i) the land is located within the boundaries of an incorporated municipality; (ii) the municipality is located in more than one county; and, (iii) the Company considers the risk insurable.

(12) Final Disclosure of Fees The Company must delete subparagraph (l) of paragraph 1 of the Supplemental Coverage Equity Loan Mortgage Endorsement (T-42.1) if the Company or its Title Insurance Agent does not provide each owner with a copy of the final settlement statement at least one calendar day before the business day or subsequent calendar day that the owner executes the insured mortgage and the promissory note secured thereby. As used in this item 12, the term business day shall have the meaning assigned to such term by the Texas Finance Commission and/or the Texas Credit Union Commission pursuant to the authority granted such agencies by sections 11.308 and 15.413 of the Texas Finance Code, respectively.


• Policy Number of the policy to which this endorsement is attached • Date of Endorsement = Policy date.

Review the T-42.1 Checklist provided by the closing office and delete paragraphs from the Endorsement as necessary. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide FIRST LOSS ENDORSEMENT (T-14)


Issued by

BLANK TITLE INSURANCE COMPANY This endorsement is effective only if the Collateral includes at least two parcels of real property. 1. For the purposes of this endorsement:

(a) “Indebtedness” means all monetary obligations evidenced by the loan documents at Date of Policy as secured by the insured mortgage, but limited to the balance outstanding at the time the claim is made.

(b) “Collateral” means all property, including the land, given as security for the Indebtedness. (c) “Material Impairment Amount” means the amount by which any matter covered by this policy for

which a claim is made diminishes the value of the Collateral below the Indebtedness. 2. Subject to the provisions of Section 8 of the Conditions and Stipulations, in the event of a claim resulting from a matter insured against by this policy, the Company agrees to pay that portion of the Material Impairment Amount that does not exceed the limits of liability imposed by Sections 2 and 7 of the Conditions and Stipulations without requiring:

(a) maturity of the Indebtedness by acceleration or otherwise; (b) pursuit by the insured of its remedies against the Collateral; (c) pursuit by the insured of its remedies under any guaranty, bond or other insurance policy.

3. Nothing in this endorsement shall impair the Company’s right of subrogation. However, the Company agrees that its right of subrogation shall be subordinate to the rights and remedies of the insured. The Company’s right of subrogation shall include the right to recover the amount paid to the insured pursuant to paragraph 2 from any debtor or guarantor of the Indebtedness, after payment or other satisfaction of the remainder of the Indebtedness and other obligations secured by the lien of the insured mortgage. The Company shall have the right to recoup from the insured claimant any amount received by it in excess of the Indebtedness up to the amount of the payment under paragraph 2. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. [Witness clause optional] BLANK TITLE INSURANCE COMPANY

BY: ______________________________ Form T-14: First Loss Endorsement


Texas Endorsement Guide FIRST LOSS ENDORSEMENT T-14

Issuing the Form: This endorsement may be attached to a Mortgagee Title Insurance Policy meeting the following criteria: • The land covered by the policy is not “residential real property.” • Collateral for the insured loan includes at least two parcels of real property. • Other property (either real or personal) not described in the policy is encumbered to secure payment of the

indebtedness secured by the insured lien. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review the loan instruments to determine that

o The collateral for the loan includes at least two parcels of real property, and o That collateral other than the property described in the policy is encumbered to secure repayment of

the indebtedness. Rate Rule: R-11i - $25.00 Endorsement issued as provided in Rule P-9b(11) - When the First Loss Endorsement (T-14) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(11), the premium for the First Loss Endorsement (T-14) shall be $25.00. Procedural Rule: P-9b(11) A Company may issue its First Loss Endorsement (T-14) to a Mortgagee Policy (T-2), if (1) its underwriting requirements are met, (2) other property not described in the Mortgagee Policy is encumbered to secure payment of the indebtedness secured by the insured mortgage, and (3) the Company is paid the premium prescribed in Rate Rule R-11i. The Company may not issue the First Loss Endorsement (T-14) if the land covered by the policy is residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached Similar ALTA or CLTA endorsement forms: • ALTA 20 First Loss – Multiple Parcel Transactions (4-19-04)


Texas Endorsement Guide INCREASED VALUE ENDORSEMENT T-34

Issued by __________________TITLE INSURANCE COMPANY

This Endorsement is made a part of Owner Policy Number _________________, dated ____________________. As of the date of this endorsement, the “Amount” on Schedule A is deleted and the following amount is substituted:

$ ______________________. Under this endorsement, we do not cover title risks or insure against matters:

a. created, suffered, assumed, or agreed to by you (the insured), or

b. known to you (the insured) but not to us (the company) at the date of this endorsement unless they appeared in the Public Records on the Policy Date.

This endorsement does not change the Policy Date. The terms of the Policy apply to this endorsement. Endorsement Premium: $________ Endorsement Date: ________, 20______ ATTEST: (Name of Company) Title Insurance Company _______________________________________ By: __________________________________ President Endorsement Form T-34: Increased Value


Texas Endorsement Guide INCREASED VALUE ENDORSEMENT – T-34

Issuing the Form: This endorsement may be attached to any Owner Title Insurance Policy at the request of the Insured and upon verification that the value of the insured estate in the land has increased. Underwriting Guidelines: • Require satisfactory evidence of the current value of the insured estate. If the evidence is not in the form of a

current appraisal, obtain Underwriting advice as to acceptance of some other form of evidence. Rate Rule: R-3.c - $25.00 When requested by the Insured, and upon compliance with Rule with Rule P-9.a.(2), endorsement form T-34 shall be attached to the Owner Policy upon payment of a premium for such endorsement which shall be the Basic Rate computed on the new amount less the premium paid for the Owner Policy and any form T-34 endorsements previously attached thereto, but in no event less than the then applicable minimum policy Basic Premium Rate. Procedural Rule: P-9a (2) When an insured under an Owner Policy shall have satisfied the Company as to the current value of the estate or interest insured by such Owner Policy, and shall have paid the premium provided for in Rule R-3.c, the Company shall attach to the said Owner Policy endorsement form T-34. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Amount = The current appraised value – or other current value approved by Underwriting. • Premium = The premium for the endorsement, according to Rate Rule R-3.c • Date = The date on which the endorsement is issued.


• CLTA 107.2 Amount of Insurance—Increase(6-17-53)


Texas Endorsement Guide LAST DOLLAR ENDORSEMENT T-15

ENDORSEMENT TO TITLE POLICY SERIAL NUMBER No. _________

ISSUED BY BLANK TITLE INSURANCE COMPANY

HEREIN CALLED THE COMPANY The liability of the Company under this policy will not be reduced under Section 9(b) of the Conditions and Stipulations as the result of payment on the indebtedness secured by the insured mortgage, except to the extent such payments reduce the total indebtedness secured by the insured mortgage below the Amount of Insurance stated in Schedule A. The total liability of the Company under said Policy and any endorsements therein shall not exceed, in the aggregate, the face amount of said Policy and costs which the Company is obligated under the conditions and stipulations thereof to pay. This Endorsement is made a part of said Policy and is subject to the terms thereof, except as modified by the provisions of this endorsement. This Endorsement is made a part of the policy and is subject to all the terms and provisions thereof and of any prior endorsement thereto. Except to the extent expressly stated, this Endorsement neither modifies any of the terms and provisions of the policy and prior endorsements, nor does it increase the face amount thereof. Form T-15: Last Dollar Endorsement


Texas Endorsement Guide LAST DOLLAR ENDORSEMENT TO TITLE POLICY T-15

Issuing the Form: This endorsement may be attached to a Mortgagee Title Insurance Policy meeting the following criteria: • The land covered by the policy is not “residential real property.” • Other property not described in the policy is encumbered to secure payment of the indebtedness secured by

the insured lien. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review the loan instruments to determine that collateral other than the property described in the policy also

secures repayment of the indebtedness. Rate Rule: R-11j - $25.00 Endorsement issued as provided in Rule P-9b12) - When the Last Dollar Endorsement (T-15) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(12), the premium for the Last Dollar Endorsement (T-15) shall be $25.00. Procedural Rule: P-9b(12) A Company may issue its Last Dollar Endorsement (T-15) to a Mortgagee Policy (T-2), if (1) its underwriting requirements are met, (2) other property not described in the Mortgagee Policy is encumbered to secure payment of the indebtedness secured by the insured mortgage, and (3) the Company is paid the premium prescribed in Rate Rule R-11j. The Company may not issue the Last Dollar Endorsement (T-15) if the land covered by the policy is residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide LEASEHOLD MORTGAGEE POLICY ENDORSEMENT T-5

ENDORSEMENT ATTACHED TO AND MADE A PART OF MORTGAGEE’S POLICY OF TITLE INSURANCE

SERIAL NUMBER ____________ ISSUED BY

_______ TITLE INSURANCE COMPANY

HEREIN CALLED THE COMPANY File No. _____________ Attached to and made a part of ______________________________________ Title Insurance Company Mortgagee Policy Number ___________________, dated the _____day of _____________________, 20_____. 1. As used in this endorsement, the following terms shall mean:

a. "Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of the land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case, as a result of a matter covered by this policy.

b. "Lease": the lease agreement described in Schedule A. c. "Leasehold Estate": the right of possession for the Lease Term. d. "Lease Term": the duration of the Leasehold Estate, including any renewal or extended term if a valid option to renew or extend is

contained in the Lease. e. "Personal Property": chattels located on the land and property which, because of their character and manner of affixation to the land,

can be severed from the land without causing appreciable damage to themselves or to the land to which they are affixed. f. "Remaining Lease Term": the portion of the Lease Term remaining after the insured has been Evicted as a result of a matter covered

by this policy. g. "Tenant": the tenant under the Lease and, after acquisition of all or any part of the estate or interest in the land described in Schedule

A in accordance with the provisions of Section 2(a) of the Conditions and Stipulations of this policy, the insured claimant. h. "Tenant Leasehold Improvements": Those improvements, including landscaping, required or permitted to be built on the land by the

Lease that have been built at the insured's expense or in which the insured has an interest greater than the right to possession during the Lease Term.

2. Valuation of Estate or Interest Insured If, in computing loss or damage, it becomes necessary to value the estates or interests insured by this policy as the result of a covered matter that results in an Eviction of the Tenant, then that value shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold Improvements existing on the date of the Eviction. The insured claimant shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term. 3. Additional items of loss covered by this endorsement: If the insured acquires all or any part of the estate or interest in the land described in Schedule A in accordance with the provisions of Section 2(a) of the Conditions and Stipulations of this policy and thereafter is Evicted, the following items of loss, if applicable, shall be included in computing loss or damage incurred by the insured, but not to the extent that the same are included in the valuation of the estates or interests insured by this policy.

a. The reasonable cost of removing and relocating any Personal Property that the insured has the right to remove and relocate, situated on the land at the time of Eviction, the cost of transportation of that Personal Property for the initial one hundred miles incurred in connection with the relocation, and the reasonable cost of repairing the Personal Property damaged by reason of the removal and relocation.

b. Rent or damages for use and occupancy of the land prior to the Eviction which the insured as owner of the Leasehold Estate may be

obligated to pay to any person having paramount title to that of the lessor in the Lease. c. The amount of rent that, by the terms of the Lease, the insured must continue to pay to the lessor after Eviction with respect to the

portion of the Leasehold Estate and Tenant Leasehold Improvements from which the insured has been Evicted. d. The fair market value, at the time of the Eviction, of the estate or interest of the insured in any lease or sublease made by Tenant as

lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements. e. Damages that the insured is obligated to pay to lessees or sublessees on account of the breach of any lease or sublease made by the

Tenant as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements caused by the Eviction.


Texas Endorsement Guide f. Reasonable costs incurred by the insured to secure a replacement leasehold equivalent to the Leasehold Estate. g. If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, the actual cost incurred by the insured, less

the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs incurred to obtain land use, zoning, building and occupancy permits, architectural and engineering fees, construction management fees, costs of environmental testing and reviews, and landscaping costs.

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. [Witness clause optional] BLANK TITLE INSURANCE COMPANY BY:_____________________________ Form T-5: Leasehold Mortgagee Policy Endorsement

LEASEHOLD MORTGAGEE POLICY ENDORSEMENT – Form T-5

Issuing the Form: This endorsement must be attached to any Mortgagee Title Insurance Policy insuring a leasehold estate. Underwriting Guidelines: Verify estate being insured is a leasehold estate.

Note: In the policy, an exception must appear under Schedule B to the terms, provisions, and conditions of the document creating the leasehold estate.

Rate Rule: none. There is no premium charge for this endorsement. Procedural Rule: P-9.b.(5) 5) When a Mortgagee Policy of Title Insurance is to be issued on a leasehold estate in the land, the Company shall attach to the said Mortgagee Policy the Leasehold Mortgagee Policy Endorsement. The Mortgagee Policy shall show that the estate being insured is a leasehold and exception shall be shown under Schedule B to all of the terms, provisions, and conditions of the said lease creating such leasehold estate. Completing the Form: Add the following information to the Endorsement form:

• File Number = GF# • Serial No. = Policy Number of the policy to which this endorsement is attached • Date of the policy to which this endorsement is attached


• ALTA 13.1 Leasehold Loan Endorsement (10-13-01)


Texas Endorsement Guide LEASEHOLD OWNER POLICY ENDORSEMENT T-4

ENDORSEMENT ATTACHED TO AND MADE A PART OF POLICY OF TITLE INSURANCE SERIAL NUMBER ______________

ISSUED BY

_______TITLE INSURANCE COMPANY HEREIN CALLED THE COMPANY

File No. __________________ Attached to and made a part of ____________________________________________ Title Insurance Company Owner Policy Number _____________________, dated the _____ day of _____________________, 20___. 1. As used in this endorsement, the following terms shall mean:

a. "Evicted" or "Eviction": (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of the use of the land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case, as a result of a matter covered by this policy.

b. "Lease": the lease agreement described in Schedule A. c. "Leasehold Estate": the right of possession for the Lease Term. d. "Lease Term": the duration of the Leasehold Estate, including any renewal or extended term if a valid option to renew or extend is

contained in the Lease. e. "Personal Property": chattels located on the land and property which, because of their character and manner of affixation to the land,

can be severed from the land without causing appreciable damage to themselves or to the land to which they are affixed. f. "Remaining Lease Term": the portion of the Lease Term remaining after the insured has been Evicted as a result of a matter covered

by this policy. g. "Tenant Leasehold Improvements": Those improvements, including landscaping, required or permitted to be built on the land by the

Lease that have been built at the insured's expense or in which the insured has an interest greater than the right to possession during the Lease Term.

2 The provisions of subsection (b) of Section 7 of the Conditions and Stipulations shall not apply to any Leasehold Estate covered by this policy. 3. Valuation of Estate or Interest Insured If, in computing loss or damage, it becomes necessary to value the estates or interests of the insured as the result of a covered matter that results in an Eviction, then that value shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any Tenant Leasehold Improvements existing on the date of the Eviction. The insured claimant shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term. 4 Additional items of loss covered by this endorsement: If the insured is Evicted, the following items of loss, if applicable, shall be included in computing loss or damage incurred by the insured, but not to the extent that the same are included in the valuation of the estates or interests insured by this policy.

a. The reasonable cost of removing and relocating any Personal Property that the insured has the right to remove and relocate, situated on the land at the time of Eviction, the cost of transportation of that Personal Property for the initial one hundred miles incurred in connection with the relocation, and the reasonable cost of repairing the Personal Property damaged by reason of the removal and relocation.

b. Rent or damages for use and occupancy of the land prior to the Eviction which the insured as owner of the Leasehold Estate is

obligated to pay to any person having paramount title to that of the lessor in the Lease. c. The amount of rent that, by the terms of the Lease, the insured must continue to pay to the lessor after Eviction with respect to the

portion of the Leasehold Estate and Tenant Leasehold Improvements from which the insured has been Evicted. d. The fair market value, at the time of the Eviction, of the estate or interest of the insured in any lease or sublease made by the insured

as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements. e. Damages that the insured is obligated to pay to lessees or sublessees on account of the breach of any lease or sublease made by the

insured as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements caused by the Eviction f. Reasonable costs incurred by the insured to secure a replacement leasehold equivalent to the Leasehold Estate. g. If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, the actual cost incurred by the insured, less

the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs incurred to obtain


Texas Endorsement Guide land use, zoning, building and occupancy permits, architectural and engineering fees, construction management fees, costs of environmental testing and reviews, landscaping costs and fees, costs and interest on loans for the acquisition and construction.

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. [Witness clause optional]

BLANK TITLE INSURANCE COMPANY BY:_____________________________

Form T-4: Leasehold Owner Policy Endorsement

LEASEHOLD OWNER POLICY ENDORSEMENT – Form T-4 Issuing the Form: This endorsement must be attached to any Owner Title Insurance Policy (T-1) insuring a leasehold estate. Underwriting Guidelines: Verify estate being insured is a leasehold estate.


Rate Rule: none. There is no premium charge for this endorsement. Procedural Rule: P-9a (1) (1) When an Owner Policy of Title Insurance (Form T-1) is to be issued on a leasehold estate in the land, the Company shall attach to the said Owner Policy (Form T-1) the Leasehold Owner Policy Endorsement. . . . . . . The Owner Policy shall show that the estate being insured is a leasehold and exceptions shall be shown under Schedule B to all of the terms, provisions, and conditions of the said lease creating such leasehold estate. Completing the Form: Add the following information to the Endorsement form:

• File Number = GF# • Serial No. = Policy Number of the policy to which this endorsement is attached • Date of the policy to which this endorsement is attached


• ALTA 13 Leasehold Owners Endorsement (10-13-01)


Texas Endorsement Guide RESIDENTIAL LEASEHOLD ENDORSEMENT T-4R

BY BLANK TITLE INSURANCE COMPANY

This Endorsement is a part of Policy Number _______________. 1. The following are definitions for this endorsement.

a. "Evicted" or "Eviction": (a) the lawful deprivation of your right of possession insured by this policy, contrary to the terms of the Lease or (b) the lawful prevention of your use of the land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case, as a result of a Covered Title Risk.

b. "Lease": the lease described in Schedule A. c. "Leasehold Estate": the right of possession for the Lease Term. d. "Lease Term": the duration of the Leasehold Estate, including any renewal or extended term if a valid option to renew or extend is

contained in the Lease. e. "Personal Property": (1) furniture, appliances, and other personal, family or household goods located on the land, and (2) property

which can be removed from the land without causing significant damage to that property or the land. f. "Remaining Lease Term": the portion of the Lease Term remaining after you have been Evicted as a result of a Covered Title Risk. g. "Tenant Leasehold Improvements": Those improvements, including landscaping, on the land you have built or in which you have an

interest greater than the right to possession during the Lease Term. 2. Valuation of Estate or Interest Insured To determine the value of your estate or interest in the land as a result of a Covered Title Risk that results in an Eviction, the value will consist of the value of your Remaining Lease Term and any Tenant Leasehold Improvements then existing. You shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements valued either as a whole or separately. In either event, this determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term. 3. Miscellaneous Loss: If you are Evicted because of a Covered Title Risk, we will include the following in computing your actual loss. We will not include the following if they are included in the valuation of your estate or interest in the land.

a. We will pay reasonable costs of removing and relocating Personal Property that you may remove and relocate. We will pay the reasonable costs to repair Personal Property damaged during removal and relocation. We will not pay transportation costs for more than one hundred miles.

b. We will pay rent or damages for use of the land before eviction that the law requires you to pay to any person with superior title. c. We will pay the amount of rent under the Lease that you must continue to pay after eviction with respect to the portion of the

Leasehold Estate and Tenant Leasehold Improvements from which you have been Evicted. d. We will pay the value of any lease or sublease of the land by you. e. We will pay damages that you are obligated to pay to lessees or sublessees on account of the breach of the lease or sublease of the

Leasehold Estate or Tenant Leasehold Improvements caused by eviction. We will pay only these costs that Eviction caused. f. We will pay reasonable costs you incur to secure a replacement leasehold equivalent to the Leasehold Estate. g. If Tenant Leasehold Improvements are not substantially completed at the time of Eviction, we will pay you the actual cost you incur,

less the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs you incur to obtain land use, zoning, building and occupancy permits, architectural and engineering fees, construction management fees, costs of environmental testing and reviews, landscaping costs and fees, costs and interest on loans for the acquisition and construction.

h. Our total liability under the Policy and Endorsements shall not exceed the face amount of the Policy.

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.


BY:______________________________ Form T-4R: Residential Leasehold Endorsement



RESIDENTIAL LEASEHOLD ENDORSEMENT – Form T-4R Issuing the Form: This endorsement must be attached to any Residential Owner Title Insurance Policy (T-1R) insuring a leasehold estate. Underwriting Guidelines: Verify estate being insured is a leasehold estate.


Rate Rule: none. There is no premium charge for this endorsement. Procedural Rule: P-9a (1) . . . . .. When a Residential Owner Policy of Title Insurance -- One-To-Four Family Residences (Form T-1R) is to be issued on a leasehold estate in the land, the Company shall attach the Residential Leasehold Endorsement form to the Residential Owner Policy -- One-To-Four Family Residences (Form T-1R). The Owner Policy shall show that the estate being insured is a leasehold and exceptions shall be shown under Schedule B to all of the terms, provisions, and conditions of the said lease creating such leasehold estate. Completing the Form: Add the following information to the Endorsement form:



Texas Endorsement Guide TEXAS RESIDENTIAL LIMITED COVERAGE JUNIOR MORTGAGEE POLICY

DOWN DATE ENDORSEMENT T-45


Texas Residential Limited Coverage Junior Mortgagee Policy No. _________ (herein the “Policy”)


Date of Endorsement: __________________ A. The Company hereby insures against loss or damage sustained by the Insured resulting from:

(1) Any document recorded in the public records subsequent to Date of Policy and on or prior to Date of Endorsement which purports to vest the title to the fee estate in the land, except: [Insert Item description(s) and recording information or delete immediately preceding word, “except.”]

(2) Any Home Equity Mortgage recorded in the public records subsequent to Date of Policy and on or prior to Date of

Endorsement, except: [Insert Item description(s) and recording information or delete immediately preceding word, “except”.] (3) Any Monetary Lien other than: (i) the Insured’s Mortgage shown in paragraph B below, or (ii) any specific Home Equity

Mortgage described in item A(2) above, recorded in the public records subsequent to Date of Policy and on or prior to Date of Endorsement which affects the title, except: [Insert Item description(s) and recording information or delete immediately preceding word, “except.”]

B. The Insured’s Mortgage referred to in the policy is described as follows: C. This Endorsement does not insure:

(1) That the Grantee owns the land nor that the Insured’s Mortgage creates a lien on the land, nor the validity, enforceability, or priority of the lien of the Insured’s Mortgage; or

(2) Against loss or damage resulting from (i), usury, (ii) any consumer credit protection law (including, but not limited to

Subsections (a)(6), [and] (g), and (t) of Section 50, Article XVI, Texas Constitution and any statutory or regulatory requirements pursuant thereto) or truth in lending law, or (iii) bankruptcy or insolvency proceedings of the Borrower; or

(3) Against standby fees, taxes and assessments by any taxing authority.

This Endorsement, when countersigned below by an Authorized Countersignature, is made a part of the policy. This Endorsement is subject to the Exceptions in the policy and Items set forth as exceptions in any prior Endorsements. Except as expressly modified by the provisions hereof, this Endorsement is also subject to the following Policy matters: (i) Insuring Provisions; (ii) Exclusions From Coverage; and (iii) the Conditions and Stipulations. Except as stated herein, this Endorsement does not: (i) extend the effective date of the policy and/or any prior Endorsements; (ii) increase the face amount of the policy; or (iii) modify any of the provisions of the Combined Schedule of the policy. [The Company may add the following if it considers the risk insurable and if the Insured’s Mortgage is described in Paragraph B of this Endorsement: “Date of Endorsement is the date shown above or the date of recording of the Insured’s Mortgage, whichever is later.”] [Witness Clause] BLANK TITLE INSURANCE COMPANY BY: ____________________________ AUTHORIZED SIGNATORY Form T-45: Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement



DOWN DATE ENDORSEMENT Issuing the Form: One or more of these endorsements may be attached to the specified Policy during the first year after policy issue. Underwriting Guidelines:

• Down Date the title through the requested date for the endorsement. • Obtain a current tax certificate.

Rate Rule: R-27C - $50.00 When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) is issued in accordance with Rule P-46.C, the premium for such endorsement shall be $50.00. Procedural Rule: P-46C & E C. Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45)

(1) A Company may issue one or more Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsements (T-45) within one year after issuance by that Company of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44). A Company may not issue a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) more than one year after issuance of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44).

(2) A company may delete Paragraph B from the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) if that paragraph is not applicable at the time of the issuance of the Endorsement.

(3) If the amount of the extension of credit secured by the insured's mortgage exceeds the amount of insurance previously stated in the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44), the amount of insurance shall be increased by noting that change as a Paragraph D in the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45), subject to payment of the applicable premium as provided in Rule R-27. The Paragraph D shall read as follows: "D. The amount of insurance of the Policy is hereby amended to be $_______."

E. Procedures Applicable to ….. and Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) …..

(1) A Company may not issue a Commitment for Title Insurance prior to or in connection with the issuance of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement.

(2) No proforma or specimen Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement may be issued.

(3) A T-3 Correction Endorsement may be issued to delete errors or erroneous exceptions contained in Paragraph 2 of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Paragraph A of the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45). The requirements of Section 2, Paragraph IV, of the Basic Manual, entitled "Correction of Policy or Binder" shall apply to a Correction Endorsement for a Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement.

(4) The Company may not provide Express Insurance (pursuant to P-39), or coverage or endorsements applicable to a Mortgagee Title Policy of Title Insurance (T-2) or Interim binder (T-13).

(5) The agent portion of the premium for the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement shall be retained by and paid to only the title insurance agent in the county where the land described in the policy or Endorsements is located if such title insurance agent performs either the: (i) title search; (ii) title examination; or (iii) issuance of the policy or Endorsements.


• Policy Number of the policy to which this endorsement is attached. • Date = date through which the title search is certified. • Paragraph B: Add a description of the insured mortgage, if applicable; or delete the paragraph. • If the amount of the extension of credit secured by the insured mortgage exceeds the amount of insurance

stated in the policy, collect the additional premium, and add the following Paragraph D to the endorsement: D. The amount of insurance of the Policy is hereby amended to be $_______.




HOME EQUITY LINE OF CREDIT/VARIABLE RATE ENDORSEMENT T-46


Texas Residential Limited Coverage Junior Mortgagee Policy No. ________________ (herein the “Policy”)


Date of Endorsement: _____________________ A. Subject to the provisions of paragraph B below and provided that the Insured’s Mortgage creates a lien on the land,

and the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) has been issued and describes the Insured’s Mortgage in Paragraph B thereof, and with respect to subparagraph A.3 below the insured’s mortgage states that it secures a home equity line of credit, the Company hereby insures against loss or damage which the Insured shall sustain by reason of:

(1) The invalidity or unenforceability of the lien of the Insured’s Mortgage resulting from the provisions of the

Insured’s Mortgage which provide for changes in the rate of interest. (2) Loss of priority of the lien of the Insured’s Mortgage resulting from changes in the rate of interest calculated in

accordance with the formula provided in the Insured’s Mortgage at the date it is recorded in the public records. (3) The failure of the lien for the home equity line of credit described in the insured’s mortgage to have the same

priority over liens, encumbrances, and other matters disclosed by the public records as advances secured by the insured’s mortgage at the date of its recording, except as to (i) bankruptcies affecting the estate or interest described on the Combined Schedule prior to the date of any advance or disbursement; and (ii) taxes, costs, charges, damages and other obligations to the government secured by statutory liens arising or recorded subsequent to Date of Policy stated in the Combined Schedule.

B. This Endorsement does not insure:

(1) That the Grantee owns the land nor that the Insured’s Mortgage creates a lien on the land, nor the validity, enforceability, or priority of the lien of the Insured’s Mortgage, except to the extent expressly stated; or

(2) Against loss or damage resulting from (i), usury, (ii) any consumer credit protection law (including, but not

limited to Subsections (a)(6), [and] (g), and (t) of Section 50, Article XVI, Texas Constitution and any statutory or regulatory requirements pursuant thereto) or truth in lending law, or (iii) bankruptcy or insolvency proceedings of the Borrower; or

(3) Against standby fees, taxes and assessments by any taxing authority.

This Endorsement, when countersigned below by an Authorized Countersignature, is made a part of the policy. This Endorsement is subject to the Exceptions in the policy and Items set forth as exceptions in any prior Endorsements. Except as expressly modified by the provisions hereof, this Endorsement is also subject to the following Policy matters: (i) Insuring Provisions; (ii) Exclusions From Coverage; and (iii) the Conditions and Stipulations. Except as stated herein, this Endorsement does not: (i) extend the effective date of the policy and/or any prior Endorsements; (ii) increase the face amount of the policy; or (iii) modify any of the provisions of the Combined Schedule of the policy. [Witness Clause] BLANK TITLE INSURANCE COMPANY BY: __________________________ AUTHORIZED SIGNATORY Form T-46: Texas Residential Limited Coverage Junior Mortgage Policy Variable Rate Endorsement



HOME EQUITY LINE OF CREDIT/VARIABLE RATE ENDORSEMENT Issuing the Form: One of these endorsements may be attached to the specified Policy during the first year after policy issue. Underwriting Guidelines: Verify that the insured mortgage secures a home equity line of credit or variable rate loan – one which permits adjustments of the interest rate implemented through changes in the payment amount and/or as otherwise permitted by law. Rate Rule: R-27D - $25.00 When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (Form T-46) is issued in accordance with Rule P-46.D, the premium for such endorsement shall be $25.00. Procedural Rule: P-46D & E D. Texas Residential Limited Coverage Junior Mortgagee Policy HOME EQUITY LINE OF CREDIT/Variable Rate Endorsement (T-46)

(1) A Company may issue one Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) within one year after issuance by that Company of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44). A Company may not issue a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) more than one year after issuance of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44).

(2) The Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsements (T-46) shall not be issued unless the insured's mortgage described on the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) secures a variable rate loan. For purposes of this rule, a variable rate or home equity line of credit loan is a loan made pursuant to Subsection (a)(6), of Section 50, Article XVI, Texas Constitution which permits adjustments of the interest rate, with such adjustments being implemented through changes in the payment amount and/or as otherwise allowed by applicable law. For purposes of this rule, a home equity line of credit is an open-end account made pursuant to Subsections (a)(6) and (t), of Section 50, Article XVI, Texas Constitution.

E. Procedures Applicable to ….. and Texas Residential Limited Coverage Junior Mortgagee Policy Variable Rate Endorsement (T-46) …..

(1) A Company may not issue a Commitment for Title Insurance prior to or in connection with the issuance of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement.

(2) No proforma or specimen Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement may be issued.

(3) A T-3 Correction Endorsement may be issued to delete errors or erroneous exceptions contained in Paragraph 2 of the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Paragraph A of the Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45). The requirements of Section 2, Paragraph IV, of the Basic Manual, entitled "Correction of Policy or Binder" shall apply to a Correction Endorsement for a Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) Combined Schedule or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement.

(4) The Company may not provide Express Insurance (pursuant to P-39), or coverage or endorsements applicable to a Mortgagee Title Policy of Title Insurance (T-2) or Interim binder (T-13).

(5) The agent portion of the premium for the Texas Residential Limited Coverage Junior Mortgagee Policy (T-44) or Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (T-45) or Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (T-46) or Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement shall be retained by and paid to only the title insurance agent in the county where the land described in the policy or Endorsements is located if such title insurance agent performs either the: (i) title search; (ii) title examination; or (iii) issuance of the policy or Endorsements.


• Policy Number of the policy to which this endorsement is attached • Date of Endorsement: Date of the policy to which it is attached.



Texas Endorsement Guide LIMITED PRE-FORECLOSURE POLICY DOWN DATE ENDORSEMENT T-99

Attached to made a part of _______________ Title Insurance Company Pre-Foreclosure Policy Number _____________________ {hereinafter the “Policy”} dated the _____ day of ________, ________. 1. Title Company File No. 2. Endorsement Premium: $ 3. Date of Policy is hereby Changed to: 4. The Date of the Policy is not amended with respect to the tax exception shown as Item 1 {one} of the

Exceptions From Coverage. No insurance is afforded by this endorsement as to standby fees, taxes and assessments.

5. The Exceptions From Coverage of the Policy are amended to add the following items and recording

information. Insert here, using either numbered or lettered paragraphs, an exception(s) for each recorded item(s). By exception to any matter: (i) the Company does not represent the priority or validity of the matter; (ii) the Insured does not agree that the matter is valid or superior to the Foreclosing Mortgage; and, (iii) the Insured does not ratify or confirm the matter. [Insert Item description(s) and recording information or state: “Item 5 {five} is hereby deleted”]

This endorsement when countersigned below by an Authorized Countersignature, is made apart of said Policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following Policy matters: (i) Insuring Provisions; (ii) Exclusions from Coverage; (iii) Exceptions From Coverage; (iv) the Conditions and Stipulations; and, (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the effective date of the Policy and/or any prior endorsements; (ii) increase the face amount of the Policy; or, (iii) modify any of the unnumbered paragraphs of the Pre-Foreclosure Combined Schedule. Authorized Countersignature ___________________________________________ ________________________________ (Printed Name of Title Insurance Company) (Printed Name of Title Insurance Agent or Direct Operation) By: ________________________________________ By: ______________________________ (Signature) (Signature) Title: President Title: _____________________________ Printed Name: ___________________________ Printed Name: ______________________ (ATTEST IS OPTIONAL) (ATTEST IS OPTIONAL) Form T-99: Limited Pre-Foreclosure Policy Down Date Endorsement


Texas Endorsement Guide LIMITED PRE-FORECLOSURE POLICY DOWN DATE ENDORSEMENT

Issuing the Form: Four of these endorsements may be attached to the specified Policy during the first two years after policy issue. Underwriting Guidelines:

• Down Date the title through the requested date for the endorsement. • Verify that the insured mortgage is not in default.

Rate Rule: R-26 C. & D. - $50.00 C. The title insurance agent's portion of the premium shall be retained by and paid to only the title insurance

agent licensed in the county where the land described in the Limited Pre-Foreclosure Policy is located because the title insurance agent's retained portion of the premium for the Limited Pre-Foreclosure Policy and the Limited Pre-Foreclosure Policy Downdate Endorsement is attributed for: (i) title search; (ii) title examination; and, (iii) issuance of the Limited Pre-Foreclosure Policy and Limited Pre-Foreclosure Policy Downdate Endorsement.

D. The premium for each Limited Pre-Foreclosure Policy Downdate Endorsement shall be $50.00. Procedural Rule: P-43. B. Limited Pre-Foreclosure Policy Downdate Endorsement (Form T-41) All the following requirements apply to issuance of a Limited Pre-Foreclosure Policy Downdate Endorsement: 1) The Limited Pre-Foreclosure Policy may be endorsed no more than four times pursuant to issuance of a

Limited Pre-Foreclosure Policy Downdate Endorsement. 2) A Pre-Foreclosure Policy Downdate Endorsement may not be issued later than 24 months subsequent to

the first {initial} issued Limited Pre-Foreclosure Policy "Date of Policy". 3) Express insurance under Procedural Rule P-39 shall not be available for the Limited Pre-Foreclosure

Policy Downdate. 4) A commitment for title insurance may not be issued prior to, or in connection with, the issuance of a Limited

Pre-Foreclosure Policy Downdate Endorsement. 5) The indebtedness secured by the foreclosing mortgage must be in default at the time of application for, and

issuance of, the Limited Pre-Foreclosure Policy Downdate Endorsement. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date = date through which the title search is certified. • Title Company File No. = GF# • Endorsement Premium = $50.00 • Date of Policy is hereby Changed to = date through which the title search is certified. • Paragraph 5: Add additional exception matters, if applicable; or delete the paragraph.



Texas Endorsement Guide MANUFACTURED HOUSING ENDORSEMENT T-31

Attached to and made a part of ______________________________ Mortgagee Policy No. _________, (name of company) dated the ______ day of ___________, _____. The first sentence of Section 1(d) of the Conditions and Stipulations of said policy is hereby amended to read as follows: (d) “Land”: The land described specifically, or by reference, in Schedule A and improvements affixed thereto

which by law constitute real property, including specifically a manufactured housing unit, bearing serial number ______________.

This Endorsement, when countersigned below by an Authorized Countersignature is made a part of said policy and is subject to the Schedules, Conditions, and Stipulations and Exclusions from Coverage therein, except as modified by the provisions hereof. This Endorsement neither modifies any other terms of the policy and any prior endorsement, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. Attest: (name of company) _________________________________ By: ________________________________ Secretary President COUNTERSIGNED AT: ____________________________________ _________________________________ (authorized countersignature) Endorsement Form T-31: Manufactured Housing


Texas Endorsement Guide Form T-31: MANUFACTURED HOUSING ENDORSEMENT

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring a lien securing an indebtedness against land and a manufactured housing unit which has been affixed to the land in Schedule A so as to become a part of the real property. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • See most current Underwriting Bulletin(s) for guidelines.

Rate Rule: R-11(e) - $20.00 Endorsement issued as provided in Rule P-9b(7) - A premium of $20.00 shall be charged for the issuance of endorsement form T-31 as provided for in Rule P-9b(7). …… Procedural Rule: P-9.b.(7) Where a Mortgagee Policy has been issued covering the lien securing an indebtedness against land and a manufactured housing unit which has been affixed to the land covered by said lien so as to become part of the real property, the Company may, if it considers the additional risk insurable and if requested by the proposed insured, attach to the policy endorsement form T-31 ….. upon the payment of the premium prescribed in Rate Rule R-11 (e) and all expenses required by the Company (such as survey and/or inspection). ….. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Date of the policy to which this endorsement is attached • Serial Number of the manufactured housing unit located on the land


• ALTA 7 Manufactured Housing Unit (6-1-87) - Same as CLTA 116.5


Texas Endorsement Guide SUPPLEMENTAL COVERAGE MANUFACTURED HOUSING UNIT

ENDORSEMENT (T-31.1) ATTACHED TO AND MADE A PART OF POLICY OF TITLE INSURANCE

SERIAL NUMBER __________ ISSUED BY

_________ TITLE INSURANCE COMPANY

HEREIN CALLED THE COMPANY Order No.: The Company insures the insured against loss, if any, sustained by the insured under the terms of the policy if, AT DATE OF POLICY: 1. A manufactured housing unit is not located on the land. 2. The manufactured housing unit located on the land is not real property. 3. The owner of the land as insured in the policy is not the owner of the manufactured housing unit. 4. Any lien for personal property taxes has attached to the manufactured housing unit. 5. Any federal tax lien, financing statement or other personal property lien has attached to the manufactured

housing unit. 6. Any mortgage insured in Schedule A is not a valid lien against the manufactured housing unit (mortgagee

title policy only). The term “land” as defined in this policy includes the manufactured housing unit located on the land at Date of Policy. This endorsement when countersigned below by an Authorized Countersignature, is made a part of said policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy matters: (i) Insuring Provisions; (ii) Exclusions from Coverage; (iii) Schedule “B” Exceptions; (iv) the Conditions and Stipulations; and, (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the effective date of the policy and/or any prior endorsements; or, (ii) increase the face amount of the policy. Authorized Countersignature ____________________________________ (Printed Name of Title Insurance Company) By: ________________________________ (Signature) Title: President Printed Name: _______________________ (ATTEST IS OPTIONAL) ___________________________________ (Printed Name of Title Insurance Agent or Direct Operation) By: ________________________________ (Signature) Title: ______________________________ Printed Name:_______________________ (ATTEST IS OPTIONAL) Form T-31.1: Supplemental Coverage Manufactured Housing Unit Endorsement


Texas Endorsement Guide SUPPLEMENTAL COVERAGE MANUFACTURED HOUSING UNIT

ENDORSEMENT (T-31.1) Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring lien securing an indebtedness against land and a manufactured housing unit which has been affixed to the land in Schedule A so as to become a part of the real property. Underwriting Guidelines: • Verify that lender's or owner’s instructions require this endorsement. • See most current Underwriting Bulletin(s) for guidelines. Rate Rules:

R-15. – Owner Policy - $50.00 Applicable only as provided in Rule P-9.a.(3) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Procedural Rule P-9.a.(3) or Procedural Rule P-9.a.(4). R-11.E. – Mortgagee Policy - $50.00 A premium of $50 shall be charged for the issuance of endorsement form T-31.1 as provided for in Rule P-9b(7).

Procedural Rules:

Owner Policy – P9a(4) Where an Owner Policy has been issued covering the land and a manufactured housing unit which has been affixed to the land so as to become part of the real property, the Company may, if it considers the additional risk insurable and if requested by the proposed insured, attach to the policy endorsement form T-31.1 upon the payment of the premium prescribed in Rate Rule R-15 and all expenses required by the Company (such as survey and/or inspection). Mortgagee Policy – P9b(7) Where a Mortgagee Policy has been issued covering the lien securing an indebtedness against land and a manufactured housing unit which has been affixed to the land covered by said lien so as to become part of the real property, the Company may, if it considers the additional risk insurable and if requested by the proposed insured, attach to the policy endorsement form ….. T-31.1 upon the payment of the premium prescribed in Rate Rule R-11 (e) and all expenses required by the Company (such as survey and/or inspection). A Company is not required to issue endorsement form T-31 in order to issue endorsement form T-31.1.




Texas Endorsement Guide MORTGAGEE POLICY AGGREGATION ENDORSEMENT FORM T-16

ATTACHED TO POLICY NO. __________

Issued By


The following policies are issued in conjunction with one another: Policy Number: County: State: Amount: _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ Notwithstanding the provisions of Section 7(a)(i) of the Conditions and Stipulations of this policy, the Amount of Insurance available to cover the Company’s liability for loss or damage under this policy at the time of Payment of Loss hereunder shall be the aggregate of the Amount of Insurance under this policy and the other policies identified above. At no time shall the Amount of Insurance under this policy and the other policies identified above exceed in the aggregate $__________________. Subject to the provisions of Section 9(a) of the Conditions and Stipulations of the policies, all payments made by the Company under this policy or any of the other policies identified above, except the payments made for costs, attorney’s fees and expenses, shall reduce the aggregate Amount of Insurance pro tanto. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements. Form T-16: Mortgagee Policy Aggregation Endorsement


Texas Endorsement Guide MORTGAGEE POLICY AGGREGATION ENDORSEMENT FORM T-16

Issuing the Form: This endorsement may be attached to a Mortgagee Title Insurance Policy meeting the following criteria: • Other property not described in the policy is encumbered to secure payment of the indebtedness secured by

the insured lien. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review the loan instruments to determine that collateral other than the property described in the policy also

secures repayment of the indebtedness. Rate Rule: R-11.K. - $25.00 Endorsement issued as provided in Rule P-9b(13) - When the Mortgagee Policy Aggregation Endorsement (T-16) is issued with a Mortgagee Policy of Title Insurance (T-2) in accordance with Rule P-9b(13), the premium for the Mortgagee Policy Aggregation Endorsement (T-16) shall be $25.00. Procedural Rule: P-9b(13) A Company may issue its Mortgagee Policy Aggregation Endorsement (T-16) to a Mortgagee Policy of Title Insurance (T-2), if

(1) it is paid the premium prescribed in Rate Rule R-11k; (2) its underwriting requirements are met; and (3) multiple policies are simultaneously issued covering separate mortgages securing the same indebtedness or loan.

The Company shall charge the applicable premium for each Mortgagee Policy of Title Insurance (T-2). Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • Policy Number, County, State, and Amount for all policies to be aggregated. • Total aggregate Liability of all aggregated policies


• ALTA 12 Aggregation Endorsement (also known as a “Tie In” Endorsement)


Texas Endorsement Guide MORTGAGEE POLICY OF TITLE INSURANCE P-9.b.(3)

ENDORSEMENT FORM T-38

Partial Release, Release of Additional Collateral, Modification Agreement, Reinstatement Agreement, or

Release From Personal Liability

ENDORSEMENT NUMBER: _______________ Premium: $ __________ G. F. No: ______________ Attached to and made a part of _________________________________Title Insurance Company Mortgagee Policy No. ________________________________ this _____________ day of _____________, _____. As to the above numbered mortgagee policy, the Company will not claim that policy coverage has terminated or that policy coverage has been reduced, solely by reason of the execution of:

________________________________________________________________________ (Here describe the instrument by stating whether it is a partial release, release of additional collateral, modification agreement, reinstatement agreement or release from personal liability and then more fully describe the instrument by filling in the blanks below.) dated the _______ day of ___________________, _____, filed for record on the ________ day of __________, _______ at ________ M in the office of the County Clerk of ____________________ County, Texas, under clerk’s file number ___________ and/or recorded in Volume/Book _________, Page ________ of the ______________ Records of said County. If, by the terms of the above described instrument, the maturity date of the indebtedness secured by the insured lien is extended beyond the original period of limitation applicable to such indebtedness, this endorsement shall be construed to include either paragraph “A” or paragraph “B” below.

A) As to all mortgagee policies issued before March 1, 1983: “The issuance of this endorsement shall not extend the liability hereunder (should the insured remain as a lien holder only), beyond the period of limitation applicable to the indebtedness secured by the lien described on Schedule “A” calculated from the original maturity date of such indebtedness.”

B) As to all mortgagee policies issued after February 28, 1983: “The issuance of this endorsement shall maintain the liability

hereunder (should this insured remain as a lien holder only), for the period of limitation applicable to the indebtedness secured by the lien described on Schedule “A” calculated from the renewed and extended maturity date of such indebtedness.”

This endorsement, notwithstanding anything in the above described instrument to the contrary, does not change the original effective date of the mortgagee policy or the face amount of insurance stated on Schedule “A” thereof, nor does it alter or increase the coverage of the policy. This endorsement shall not be construed to include within its scope any modification agreement, reinstatement agreement or other instrument not specifically set forth above and described herein by volume/page or clerk’s file number. The Company shall have no liability by reason of: (i) the invalidity of the above described instrument or any part thereof; or (ii) the failure to record any renewal and/or extension agreement. This endorsement is subject to the Schedule “B” exceptions and the conditions and stipulations of the above numbered Mortgagee Policy. IN WITNESS HEREOF, the ______________________________________TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. ______________________Title Insurance Company _________________________________________ President __________________________________________ Authorized Countersignature

***************************************************** -NOTICE-

No title search is performed in connection with the issuance of this endorsement form.

*****************************************************



Partial Release, Release Of Additional Collateral, Modification Agreement, Reinstatement Agreement And/Or Release From Personal Liability Endorsement

Issuing the Form: This endorsement may be attached to a previously-issued Mortgagee Title Insurance Policy at the request of an insured, provided the document to be acknowledged by the endorsement meets the criteria set out in the Procedural Rule. Underwriting Guidelines: Compare the loan documents to be shown in the endorsement with the Procedural Rule to determine that the document evidences one of the permitted changes to the terms of the loan – and does not contain any of the prohibited changes. Rate Rule: R-11.b Endorsement issued as provided in Rule P-9b(3) - A premium of $100.00 shall be charged for each Endorsement issued within one year after the date of the original policy. If issued after said one year period, an additional $10.00 shall be charged for each twelve-month period thereafter, or a part thereof. In no event, however, shall such premium exceed 50% of the premium applicable to the original Mortgagee Policy under the Schedule of Basic Rates. Procedural Rule: P-9.b.3 When a Mortgagee Policy has been issued covering the lien securing an indebtedness, and the holder of such Mortgagee Policy desires to: (a) release a part of the land described in Schedule A of said Policy; and/or (b) release additional collateral securing indebtedness described in said Schedule A; and/or (c) modify only one or more of the following items described in Schedule A of said policy: the mortgage, deed of trust,

security instrument, guaranty or promissory note, by entering into a Modification Agreement; and/or (d) reinstate said mortgage or deed of trust by entering into a Reinstatement Agreement; and/or (e) release the mortgagor(s) or other obligors from personal liability; Upon payment of the premium prescribed by Rate Rule R-11.b, the Company which issued the original policy may issue a Form T-38 Endorsement thereto to show that policy coverage has not been reduced or terminated solely by virtue of the modification, reinstatement or release. An endorsement shall not be issued under this subparagraph (3) if: (i) the modification agreement, reinstatement agreement or other instrument expressly creates or grants a lien or power of

sale; or (ii) the indebtedness secured by the lien of the insured mortgage or deed of trust is evidenced by a new promissory note;

or (iii) the insured mortgage or deed of trust is modified to secure additional principal indebtedness other than accrued or

deferred interest on the specific indebtedness described on Schedule A of the policy or advances made pursuant to the terms of the original mortgage or deed of trust; or

(iv) the insured mortgage or deed of trust is cross-collateralized or otherwise modified to cover property not described on Schedule A of the policy


• Premium, GF # and Policy Number of the policy to which this endorsement is attached. • Date = Date of recording of modifying document described in the endorsement. • Type of modifying document, followed by detailed description of the date and recording of the document.



Texas Endorsement Guide NON-IMPUTATION ENDORSEMENT (T-24)

Attached to and Forming a Part of

_______________ Policy of Title Insurance No. ____________

Issued by


HEREIN THE COMPANY

The Company hereby agrees that it will not assert the provisions of Exclusions from Coverage 3(a), (b), or (e) to deny liability for loss or damage otherwise insured against under the terms of the policy solely by reason of the action or inaction or knowledge, as of Date of Policy, of

[identify exiting or contributing partner(s) of the insured partnership entity, member(s) or manager(s) of the insured limited liability company entity, or officer(s) and/or director(s) of the insured corporate entity],

whether or not imputed to the insured by operation of law, but only to the extent that

[identify the “incoming” partners, members or shareholders] acquired its interest in the insured as a purchaser for value without actual knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter insured against by the policy. This endorsement is made a part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. FORM T-24: Non-Imputation Endorsement


Texas Endorsement Guide NON-IMPUTATION ENDORSEMENT – Form T-24

Issuing the Form: This endorsement may be attached to any T-1 Owner Title Insurance Policy Underwriting Guidelines: • Review the documentation provided by the insured entity to identify the exiting parties, as well as the new party. • Consult Regional Underwriting Counsel for appropriate affidavit forms to be executed by both exiting and

entering parties. o Review contents of affidavits with exiting and entering parties, ask appropriate questions and review

results with Regional Underwriting Counsel. o Add exceptions to Schedule B of the policy, if applicable and as instructed by Regional Underwriting

Counsel. Rate Rule: R-31 When the Non-imputation Endorsement (T-24) is issued with an Owner Policy (T-1) in accordance with Rule P-55, the premium for the Non-imputation Endorsement (T-24) shall be 5% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00. Procedural Rule: P-55 A Company may issue its Non-Imputation Endorsement (T-24) on or after the date that Rate Rule R-31 is effective

to a concurrently issued Owner Policy (T-1) on land which is not residential real property, if its underwriting requirements are met and if it is paid the premium, if any, prescribed in Rate Rule R-31.

The Company may add any exception to the endorsement that it considers, in its sole discretion, to be appropriate. Any matter covered in the Non-Imputation Endorsement (T-24) may be insured only by the use of this endorsement. A Company may not issue its Non-Imputation Endorsement on residential real property. Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached • The name(s) of the exiting party(ies) • The name(s) of the entering party(ies)


• ALTA Form 15 Non-imputation – Full Equity Transfer (new for 2004) • ALTA Form 15.1 Non-imputation – Additional Insured (new for 2004) • ALTA Form 15.2 Non-imputation – Partial Equity Transfer (new for 2004)


Texas Endorsement Guide PLANNED UNIT DEVELOPMENT T-17

ENDORSEMENT ATTACHED TO AND MADE A PART OF POLICY OF TITLE INSURANCE

SERIAL NUMBER __________ ISSUED BY


HEREIN CALLED THE COMPANY Order No.: The Company insures the Insured against loss or damage sustained by reason of: 1. Present violations of any restrictive covenants referred to in Schedule B which restrict the use of the land, except violations relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not excepted in Schedule B. The restrictive covenants do not contain any provisions which will cause a forfeiture or reversion of title. 2. The priority of any lien for charges and assessments at Date of Policy in favor of any association of homeowners which are provided for in any document referred to in Schedule B over the lien of any insured mortgage identified in Schedule A. 3. The enforced removal of any existing structure on the land (other than a boundary wall or fence) because it encroaches onto adjoining land or onto any easements. 4. The failure of title by reason of a right of first refusal to purchase the land which was exercised or could have been exercised at Date of Policy. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. Form T-17: Planned Unit Development


Texas Endorsement Guide PLANNED UNIT DEVELOPMENT – T-17

Issuing the Form: This endorsement may be attached to a Mortgagee Title Insurance Policy meeting the following criteria: • The land covered by the policy is “residential real property.” Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Compare the results of the title search and survey with the insuring paragraphs in the form and make

underwriting decisions regarding deletion of insuring paragraphs. • Add deletion language to Schedule B of the policy, if applicable. Rate Rule: R-11.L. - $25.00 Endorsement issued as provided in Rule P-9b(14) - When the Planned Unit Development Endorsement (T-17) is issued with a Mortgagee Policy in accordance with Rule P-9b(14), the premium for the Planned Unit Development Endorsement (T-17) shall be $25.00. If the Company issues the Planned Unit Development Endorsement (T-17) on two or more title insurance policies which are issued simultaneously covering the same land, then the premium for the Planned Unit Development Endorsement (T-17) shall be charged only for one Planned Unit Development Endorsement (T-17). Procedural Rule: P-9.b(14) A Company may issue its Planned Unit Development Endorsement (T-17) to Mortgagee Policy, if its underwriting requirements are met and if it is paid the premium prescribed in Rate Rule R-11l. The Company may delete any insuring provision if it does not consider that risk acceptable. The Company may not issue the Planned Unit Development Endorsement (T-17) if the land covered by the policy is not residential real property. Any insurance matter that may be covered by a Planned Unit Development Endorsement (T-17) may be insured only by the use of the Planned Unit Development Endorsement (T-17). Completing the Form: Add the following information to the Endorsement form:

• Serial Number = Policy Number of the policy to which this endorsement is attached • Order No. = GF# of the file in which the endorsement is issued


• ALTA 5 Planned Unit Development (3-27-92) – Same as CLTA 115.2


Texas Endorsement Guide RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT T-19

Attached to No. __________

ISSUED BY


The Company insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of: 1. The existence at Date of Policy of any of the following:

(a) Covenants, conditions or restrictions under which the lien of the mortgage referred to in Schedule A can be divested, subordinated or extinguished, or its validity, priority or enforceability impaired.

(b) Unless expressly excepted in Schedule B:

(1) Present violations on the land of any enforceable covenants, conditions or restrictions, and any existing improvements on the land which violate any building setback lines shown on a plat of subdivision recorded or filed in the public records. (2) Any instrument referred to in Schedule B as containing covenants, conditions or restrictions on the land which, in addition, (i) establishes an easement on the land; (ii) provides a lien for liquidated damages; (iii) provides for a private charge or assessment; (iv) provides for an option to purchase, a right of first refusal or the prior approval of a future purchaser or occupant. (3) Any encroachment of existing improvements located on the land onto adjoining land, or any encroachment onto the land of existing improvements located on adjoining land. (4) Any encroachment of existing improvements located on the land onto that portion of the land subject to any easement excepted in Schedule B. (5) Any notices of violation of covenants, conditions and restrictions relating to environmental protection recorded or filed in the public records.

2. Any future violation on the land of any existing covenants, conditions or restrictions occurring prior to the acquisition of title to the

estate or interest in the land by the Insured, provided the violation results in:

(a) Invalidity, loss of priority, or unenforceability of the lien of the insured mortgage; or (b) loss of title to the estate or interest in the land if the Insured shall acquire title in satisfaction of the indebtedness secured by

the insured mortgage. 3. Damage to existing improvements, including lawns, shrubbery or trees:

(a) which are located on or encroach upon that portion of the land subject to any easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which it was granted or reserved;

(b) resulting from the future exercise of any right to use the surface of the land for the extraction or development of minerals

excepted from the description of the land or excepted in Schedule B. 4. Any final court order or judgment requiring the removal from any land adjoining the land of any encroachment excepted in Schedule B. 5. Any final court order or judgment denying the right to maintain any existing improvements on the land because of any violation of

covenants, conditions or restrictions or building setback lines shown on a plat of subdivision recorded or filed in the public records. Wherever in this endorsement the words “covenants, conditions or restrictions” appear, they shall not be deemed to refer to or include the terms, covenants, conditions or limitations contained in an instrument creating a lease. As used in paragraphs 1(b)(1) and 5, the words “covenants, conditions or restrictions” shall not be deemed to refer to or include any covenants, conditions or restrictions relating to environmental protection. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. Signed under seal for the Company, but this endorsement is to be valid only when it bears an authorized countersignature. Form T-19: Restrictions, Encroachments, Minerals Endorsement


Texas Endorsement Guide RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT T-19

Issuing the Form: • This endorsement may be attached to any Mortgagee Title Insurance Policy at the request of the Insured. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Compare the results of the title search and survey with the insuring paragraphs in the form and make

underwriting decisions regarding deletion of insuring paragraphs. • Add deletion language to Schedule B of the policy, if applicable. Rate Rule: R-29 A. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued with a Mortgagee Policy of

Title Insurance (T-2) on residential real property in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement (T-19) shall be 5% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00.

B. When the Restrictions, Encroachments, Minerals Endorsement (T-19) is issued with a Mortgagee Policy of

Title Insurance (T-2) on land which is not residential real property, in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement (T-19) shall be 10% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00.

Procedural Rule: P-50 A. A Company may issue its Restrictions, Encroachments, Minerals Endorsement (T-19) to a Mortgagee

Policy (T-2) on residential real property, if its underwriting requirements are met and if it is paid the premium prescribed in Sub-Section A. of Rate Rule R-29. The Company shall delete any insuring provision if it does not consider that risk acceptable. Any insured matter covered in the Restrictions, Encroachments, Minerals Endorsement (T-19) may be insured only by the use of this Restrictions, Encroachments, Minerals Endorsement (T-19).

B. A Company may issue its Restrictions, Encroachments, Minerals Endorsement (T-19) to a Mortgagee

Policy (T-2) on land which is not residential real property, if its underwriting requirements are met and if it is paid the premium prescribed in Sub-Section B. of Rate Rule R-29. The Company shall delete any insuring provision if it does not consider that risk acceptable. Any insured matter covered in the Restrictions, Encroachments, Minerals Endorsement (T-19) may be insured only by the use of this Restrictions, Encroachments, Minerals Endorsement (T-19).


• No. = Policy Number of the policy to which this endorsement is attached If an underwriting decision has been made to delete paragraphs, the deletion may be made directly on the endorsement form [which deletion(s) should be initialed], or by insertion of “deletion” paragraphs in Schedule B of the policy to which the endorsement is attached. NOTE: See Completion of Improvements Endorsement for issuance or affirmation of the T-19 Endorsement upon completion of improvements with regard to a policy issued to include the cost of immediately contemplated improvements. Similar ALTA or CLTA endorsement forms

• ALTA 9 Restrictions Encroachments Minerals (10-17-98) – Same as CLTA 100.2 (10-17-98)


Texas Endorsement Guide RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT –

OWNER POLICY (T-19.1)

Attached to Policy No. _______________

Issued By

BLANK TITLE INSURANCE COMPANY The Company insures the insured against loss or damage sustained by reason of: 1. The existence, at Date of Policy, of any of the following unless expressly excepted in Schedule B:

(a) Present violations on the land of any enforceable covenants, conditions or restrictions, or any existing improvements on the land which violate any building setback lines shown on a plat of subdivision recorded or filed in the public records.

(b) Any instrument referred to in Schedule B as containing covenants, conditions or restrictions on the land which,

in addition, (i) establishes an easement on the land; (ii) provides for an option to purchase, a right of first refusal or the prior approval of a future purchaser or occupant; or (iii) provides a right of reentry, possibility of reverter or right of forfeiture because of violations on the land of any enforceable covenants, conditions or restrictions.

(c) Any encroachment of existing improvements located on the land onto adjoining land, or any encroachment

onto the land of existing improvements located on adjoining land. (d) Any encroachment of existing improvements located on the land onto that portion of the land subject to any

easement excepted in Schedule B. (e) Any notices of violation of covenants, conditions and restrictions relating to environmental protection recorded

or filed in the public records.

2. Damage to existing buildings:

(a) Which are located on or encroach upon that portion of the land subject to any easement excepted in Schedule B, which damage results from the exercise of the right to maintain the easement for the purpose for which is was granted or reserved;

(b) Resulting from the future exercise of any right existing at Date of Policy to use the surface of the land for the

extraction or development of minerals excepted from the description of the land or excepted in Schedule B.

3. Any final court order or judgment requiring the removal from any land adjoining the land of any encroachment, other than fences, landscaping or driveways, excepted in Schedule B. 4. Any final court order or judgment denying the right to maintain any existing building on the land because of any violation of covenants, conditions or restrictions or buildings setback lines shown on a plat of subdivision recorded or filed in the public records. Wherever in this endorsement the words “covenants, conditions or restrictions” appear, they shall not be deemed to refer to or include the terms, covenants, conditions or limitations contained in an instrument creating a lease. As used in paragraph 1(a) and 4, the words “covenants, conditions or restrictions” shall not be deemed to refer to or include any covenants, conditions or restrictions relating to environmental protection. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. FORM T-19.1: Restrictions, Encroachments, Minerals Endorsement – Owner Policy


Texas Endorsement Guide RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT (Owner Policy) – Form T-19.1

Issuing the Form: This endorsement may be attached to any T-1 Owner Title Insurance Policy upon request by the insured. Underwriting Guidelines: • An acceptable survey is required. • Compare the results of the title search and survey with the insuring paragraphs in the form and make

underwriting decisions regarding deletion of insuring paragraphs. • Add deletion language to Schedule B of the policy, if applicable. Rate Rule: R-29C When the Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1) is issued with an Owner Policy of Title Insurance (T-1) on land which is not residential real property, in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1) shall be 15% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00. A Company may not issue its Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) on residential real property. Procedural Rule: P-50C A Company may issue its Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1) on or after the date that Rate Rule R-29 is amended effective to an Owner Policy (T-1)

on land which is not residential real property, if its underwriting requirements are met and if it is paid the premium, if any, prescribed in Sub-Section C. of Rate Rule R-29.

The Company shall delete any insuring provision if it does not consider that risk acceptable. Any insured matter covered in the Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1) may be insured only by the use of this Restrictions, Encroachments, Minerals Endorsement – Owner Policy (T-19.1). Completing the Form: Add the following information to the Endorsement form:

• Policy Number of the policy to which this endorsement is attached NOTE: See Completion of Improvements Endorsement for issuance or affirmation of the T-19.1 Endorsement upon completion of improvements with regard to a policy issued to include the cost of immediately contemplated improvements. Similar ALTA or CLTA endorsement forms

• ALTA 9.1 Restrictions Encroachments and Minerals Endorsement – Unimproved Land • ALTA 9.2 Restrictions Encroachments and Minerals Endorsement – Improved Land – Same as CLTA

100.10 (10-17-98)


Texas Endorsement Guide TEXAS REVERSE MORTGAGE ENDORSEMENT T-43

Attached to and made a part of ___________ Title Insurance Company

Mortgagee Policy No. ________________ dated the _____ day of ____________, ____

Issued by _________ TITLE INSURANCE COMPANY

Notwithstanding anything to the contrary contained in this policy, the following terms and provisions shall control and apply: 1. This policy insures only up to, and liability hereunder is limited to, the amount of proceeds of the loan secured by the lien instrument

set forth under Schedule A hereof actually disbursed as of the date of this policy, but increases as each subsequent advance or disbursement of loan proceeds is made from time to time and as unpaid interest accrues on loan proceeds, so that any loss payable hereunder shall be limited to the amount of unpaid accrued interest and aggregate amount of loan proceeds actually disbursed and outstanding at the time a loss occurs hereunder; provided that in no event shall the liability of the Company hereunder exceed the face amount of this policy.

2. The Company insures the Insured that any disbursements of such loan proceeds made subsequent to the date of this policy shall be

deemed to have been made as of the date of this policy and such disbursements and accrued interest shall have the same priority as any advances made as of the date of this policy, except as to (i) bankruptcies affecting the estate or interest described on Schedule “A” hereof prior to the date of any such advance or disbursement; and (ii) taxes, costs, charges, damages and other obligations to the government secured by statutory liens arising or recorded subsequent to the date of the policy.

3. Notwithstanding the provisions of paragraph 5 of the Exclusions from Coverage set out in the main policy entitled Mortgagee Policy of

Title Insurance relating to consumer credit protection laws, the Company insures the Insured against loss, if any, sustained by the Insured under the terms of the policy because of invalidity or unenforceability of the lien of the insured mortgage by reason of: (i) the failure of the insured mortgage to be created under a written agreement with the consent of each owner of the estate or interest described in Schedule A and each owner’s spouse, as set forth in Subsection (k)(1) of Section 50, Article XVI, Texas Constitution; (ii) the failure of the extension of credit secured by the insured mortgage to be made to a person who is or whose spouse is 62 years or older, as set forth in Subsection (k)(2) of Section 50, Article XVI, Texas Constitution; (iii) the failure of the written document purporting to be made pursuant to Subsection (k)(8) of Section 50, Article XVI, Texas Constitution to be executed by the owner on the date that the insured mortgage and promissory note secured thereby are executed by the owner, provided that the Company does not insure that the written document complies with Subsection (k)(8) of Section 50, Article XVI, Texas Constitution ; or (iv) the failure of the Company or its Title Insurance Agent to furnish the owner with a copy of the written notice purporting to be made pursuant to Subsection (k)(9) of Section 50, Article XVI, Texas Constitution on the date that the owner executed the insured mortgage and the promissory note secured thereby, provided that the Company does not insure that the written document complies with Subsection (k)(9) of Section 50, Article XVI, Texas Constitution.

4. The Company does not insure against loss or damage based on (a) usury; or (b) any consumer credit protection or truth-in-lending

law and/or violation of Subsections (k)(3), (k)(4), (k)(5), (k)(6), (k)(7), (k)(8), (k)(9), (k)(10), (k)(11), (m), or (p) of Section 50, Article XVI, Texas Constitution and any regulatory or statutory requirements for a mortgage made pursuant to Subsection (a)(7) of Section 50, Article XVI, Texas Constitution except as expressly provided in paragraph 3 of this endorsement; or (c) costs, expenses or attorney’s fees required to obtain a determination of the amount of interest or indebtedness.

For purposes of this endorsement, “interest” means interest, compound interest, interest on interest, interest calculated at a rate that varies from time to time in accordance with the provisions of the insured mortgage, and interest contingent on the appreciation in the fair market value of the land charged in accordance with the terms of the insured mortgage. In this endorsement, the term “owner” refers to each owner described in Schedule “A” of this Mortgagee Policy. This endorsement does not represent or insure that a Title Insurance Agent of the Company is the agent of the Company other than for issuance of title insurance policies, as provided by applicable law. This endorsement when countersigned below by an Authorized Countersignature is made a part of said policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy matters: (i) Insuring Provisions; (ii) Exclusions from Coverage; (iii) Schedule “B” Exceptions (iv) the Conditions and Stipulations; and (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the effective date of the policy and/or any prior endorsements; or, (ii) increase the face amount of the policy. Authorized Countersignature

(Printed Name of Title Insurance Company) By: ________________________________

(Signature) Title: President Printed Name: ________________________ (ATTEST IS OPTIONAL)

____________________________________ (Printed Name of Title Insurance Agent or Direct Operation) By: ________________________________

(Signature) Title: _______________________________ Printed Name: ________________________ (ATTEST IS OPTIONAL)


Texas Endorsement Guide TEXAS REVERSE MORTGAGE ENDORSEMENT T-43

Issuing the Form: This endorsement MUST be attached to any Mortgagee Title Insurance Policy insuring a reverse mortgage. Underwriting Guidelines: • Follow the guidelines set out in your most current Underwriting Bulletin regarding insuring reverse mortgages. • During the closing phase of the transaction, the T-43 Checklist (provided by your Underwriter) should be

marked-up and signed by the escrow officer responsible for the closing. o It is anticipated that the coverage offered by some of the paragraphs and/or subparagraphs contained

in this endorsement will be not be available for every transaction. The signed checklist will be used by the policy typist to determine which paragraphs are to be deleted, if any.

Rate Rule: None Procedural Rule: P-45 A. When a Mortgagee Policy of Title Insurance (T-2) is to be issued insuring the lien securing a reverse mortgage loan made pursuant to

Subsection (a)(7) of Section 50, Article XVI, Texas Constitution, the Company shall attach to the Mortgagee Policy of Title Insurance (T-2) the Texas Reverse Mortgage Endorsement (T-43).

B. The company may not provide Express Insurance (pursuant to P-39) as to matters set forth in the Texas Reverse Mortgage Endorsement (T-43).

C. The Mortgagee Policy of Title Insurance (T-2) insuring the lien securing a reverse mortgage loan may be issued in an amount not exceeding 150% of the total advances to be made according to a plan established by the original loan agreement.

D. The Company may delete any subdivision in Paragraph 3 of the Texas Reverse Mortgage Endorsement (T-43) if it does not consider the additional risk insurable. The following language shall be placed below Paragraph 3:

“Subdivision ______ of Paragraph 3 of this Texas Reverse Mortgage Endorsement (T-43) is hereby deleted. The Company does not insure against failure to comply with the Subsection of the Constitution referred to in said subdivision of Paragraph 3.”

The Company shall complete the blank with the appropriate subdivision of Paragraph 3 of the Texas Reverse Mortgage Endorsement (T-43) if the above format is used.

E. The Company must delete subdivisions (ii) through (iv) of Paragraph 3 of the Texas Reverse Mortgage Endorsement (T-43) if the insured mortgage and the promissory note are not executed at the office of a title company. For purposes of this Rule P-45, “the office of a title company” shall mean the leased or owned Texas office location(s) of: (1) a title insurance company; or, (2) a direct operation; or, (3) a title insurance agent; or, (4) an attorney conducting the attorney’s business in the name of a title insurance company or direct operation or title insurance agent where the attorney and the attorney’s bona fide employees who close transactions are licensed as escrow officers as provided in Article 9.42.C, Texas Insurance Code. In order to evidence the deletion required by this Paragraph E, the following language shall be stated on the Texas Reverse Mortgage Endorsement (T-43):“Subdivisions (ii) through (iv) of Paragraph 3 of this Texas Reverse Mortgage Endorsement (T-43) are hereby deleted. The Company does not insure against the failure to comply with the Subsections of the Constitution referred to in said subdivisions of Paragraph 3.”

F. The Company must delete subdivision (ii) of Paragraph 3 of this Texas Reverse Mortgage Endorsement (T-43) as provided in Paragraph D, above, if the Company is not furnished with government issued photographic identification showing that the owner of the land or the spouse of the owner of the land is 62 years or older.

G. The Company must delete subdivision (iii) of Paragraph 3 of this Texas Reverse Mortgage Endorsement (T-43) as provided in Paragraph D, above, if the document furnished by the insured and purporting to attest or acknowledge that the owner received counseling regarding the advisability and availability of reverse mortgages and other financial alternatives is not executed by the owner of the land at an office of a title company on the date that the insured mortgage and the promissory note secured thereby are executed.

H. The Company must delete subdivision (iv) of Paragraph 3 of this Texas Reverse Mortgage Endorsement (T-43) as provided in Paragraph D, above, if the document furnished by the insured and purporting to disclose to the owner of the land the provisions contained in Subsection (k)(6) of Section 50, Article XVI, Texas Constitution under which the payment of principal and interest secured by the insured mortgage may be required is not given to the owner of the land and receipt is not acknowledged in writing by the owner of the land at an office of a title company on the date that the insured mortgage and the promissory note secured thereby are executed.


• Policy Number of the policy to which this endorsement is attached • Date of Endorsement = Policy date.

Review the T-43 Checklist provided by the closing office and delete paragraphs from the Endorsement as necessary. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide TEXAS STATISTICAL CODE: _______________

REVOLVING CREDIT ENDORSEMENT T-35 Issued by

_________________________TITLE INSURANCE COMPANY

GUARANTY FILE ENDORSEMENT NO.___________________ No.________________ Attached to and made a part of ______________________Title Insurance Company Mortgagee Policy Number __________________ dated the __________________ day of __________________, ____. Notwithstanding anything to the contrary contained in this policy, the following terms and provisions shall control and apply:

1. This policy insures only to, and liability hereunder is thereby limited to, the extent of the amount of proceeds of the loan secured by the lien instrument set forth under Schedule A hereof actually disbursed as of the date of this policy, but increases as each subsequent advance or disbursement of loan proceeds is made and decreases as repayment of all or a portion of the amount of loan proceeds disbursed is made from time to time, so that any loss payable hereunder shall be limited to the aggregate amount of loan proceeds actually disbursed less the aggregate of all repayments thereof existing at the time a loss occurs hereunder; provided, however, that each disbursement of loan proceeds is made in good faith and without knowledge of any defects in, or objections to, title; and further provided that in no event shall the liability of the Company hereunder exceed the face amount of this policy.

2. The Company hereby insures the Insured that any disbursements of such loan proceeds made

subsequent to the date of this policy shall be deemed to have been made as of the date of this policy and shall have the same priority as any advances made as of the date of this policy, except as to (i) bankruptcies affecting the estate or interest described on Schedule “A” hereof prior to the date of any such advance or disbursement; and, (ii) taxes, costs, charges, damages and other obligations to the government secured by statutory liens arising or recorded subsequent to the date of the policy.

This endorsement when countersigned below by an Authorized Countersignature, is made a part of said policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy matters: (i) Insuring Provisions; (ii) Exclusions from Coverage; (iii) Schedule “B” Exceptions; (iv) the Conditions and Stipulations; and, (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the effective date of the policy and/or any prior endorsements; or, (ii) increase the face amount of the policy.

Authorized Countersignature __________________________________ ____________________________________ (Printed Name of Title Insurance Company) (Printed Name of title Insurance Agent or

Direct Operation) By: _______________________________ By: _________________________________ (Signature) (Signature) Title: President Title: ________________________________ Printed Name: _______________________ Printed Name: ________________________ (ATTEST IS OPTIONAL) (ATTEST IS OPTIONAL)


Texas Endorsement Guide REVOLVING CREDIT ENDORSEMENT T-35

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring a mortgage or deed of trust which secures a revolving credit promissory note or other indebtedness meeting the criteria set out in the procedural rule. Underwriting Guidelines: • Verify that the lender’s instructions require this endorsement. • Review the note and deed of trust instruments for the revolving credit feature, using the procedural rule. • Verify that the mortgage or deed of trust discloses that the indebtedness secured thereby is a revolving type of

indebtedness. Rate Rule: R-11.f - $50.00 Endorsement issued as provided in Rule P-9b(8) - A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Rule P-9b(8). Procedural Rule: P-9.b.(8) When a Mortgagee Policy of Title Insurance is to be issued to insure the validity and priority of a lien created by a mortgage or deed of trust which secures a revolving credit promissory note or other such indebtedness where:

(1) a line of credit of a specific amount is extended to a borrower for the term of indebtedness, (2) the amount of indebtedness actually outstanding at any particular time is subject to fluctuations up

or down due to future disbursements of loan proceeds and/or future repayments thereof from time to time over the term of the indebtedness (which disbursements and repayments are contemplated by the parties at the time the indebtedness is created), and

(3) repayments by the borrower neither reduce nor increase the original line of credit extended nor affect the borrower's liability to repay the principal sum of all outstanding disbursements plus all accrued interest thereon,

the Company upon request and compliance with Rule R-11(f) shall attach to said Mortgagee Policy of Title Insurance the Revolving Credit Endorsement. The Revolving Credit Endorsement shall be available only where the mortgage or deed of trust creating the lien to be insured discloses to the satisfaction of the Company that the indebtedness secured thereby is a revolving type of indebtedness as set forth above. The Mortgagee Policy of Title Insurance shall show by endorsement that the lien being insured secures a revolving credit type of indebtedness. Completing the Form: Add the following information to the Endorsement form:

• Statistical Code for the Endorsement Premium • Guaranty File No. = GF # • Endorsement No – if required by Underwriter • Policy Number of the policy to which this endorsement is attached • Date = date of policy to which the endorsement is attached


• ALTA 6.1 Variable Rate Mortgage—Regulations (6-1-87) - Same as CLTA 111.6


Texas Endorsement Guide Amend Exception as to Area and Boundaries, Etc. – Survey Exception (End. Instruction VI)

ENDORSEMENT T-3


Paragraph 2 of Schedule B hereof is amended to read as follows: 2. Any shortages in area.






Use To Amend Exception as to Area and Boundaries, Etc. Issuing the Form: This endorsement may be attached to any Owner or Mortgagee policy. Underwriting Guidelines: • You must have an acceptable survey and, if appropriate, a qualifying affidavit. • Review the survey and add exceptions to Schedule B of the policy to matters shown on the survey for which

coverage will not be given. Rate Rule: R-16 Applicable only as provided in Rules P-2 and P-8a.(2) - the Exception as to area and boundaries, etc., may be amended in an Owner or Mortgagee Policy upon the payment of an additional premium (in the case only of an Owner Policy) therefore equivalent to

(1) 15% of the Basic Rate in an Owner Policy (T-1), or (2) 5% of the Basic Rate in a Residential Owner Policy of Title Insurance - One-To-Four Family

Residences (Form T-1R), with a minimum premium of $20.00. Procedural Rule: P-2 (a.) General Instructions

In either an Owner or Mortgagee Policy, when the Insured desires to have amended the exception as to area and boundaries, (i.e. Item 2 of Schedule B) to delete all save "shortages in area", a title insurance company may accept an existing real property survey and not require a new survey when providing area and boundary coverage if the title insurance company is willing to accept evidence of an existing real property survey, and an affidavit verifying the existing survey, notwithstanding the age of the survey or the identity of the person for whom the survey was prepared. If the transaction involves Residential Real Property, the affidavit verifying the existing survey shall be the Form T-47 Residential Real Property Affidavit. The policy to be issued shall cover the same land as described in the evidence of the existing real property survey.

The Company may, if it considers the additional hazard insurable, amend such exception (the Company may waive the requirement of a survey in connection with the issuance of its Mortgagee Policy insuring the lien on a condominium unit), by indicating same in Schedule B of the policy or by endorsement as provided herein upon payment of the premium prescribed in R-16 in the case of an Owner Policy.

The survey must be acceptable to the Company.

Endorsement Instruction VI. Use To Amend Exception As To Area And Boundaries, Etc. When the Company has determined to amend the printed exception as to area and boundaries, etc., to eliminate all save and except to shortages in area (or show same on a Commitment for Title Insurance), and when there is compliance with Rules P-2 and R-16, it shall issue the Endorsement, inserting therein: [see sample document – the promulgated language has been inserted]. Completing the Form: Add the following information to the Endorsement form:



Texas Endorsement Guide ENDORSEMENT T-30

Attached to and made part of ________________________Title Insurance Company Mortgagee Policy or Interim Construction Binder Number __________________.

The words “and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership” as set forth in Item 3., in Schedule B of the Mortgagee Policy or in Item 3, Schedule B-Part 1 of the Interim Construction Binder (whichever is applicable) to which this endorsement is attached are hereby deleted.

Nothing herein contained shall be construed as extending or changing the effective date of the Mortgagee Policy or Interim Construction Binder (whichever is applicable) to which this endorsement is attached. IN WITNESS HEREOF, the _____________________________ TITLE INSURANCE COMPANY has caused this Endorsement to be executed by its President under the seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature. Attest: _________TITLE INSURANCE COMPANY



Texas Endorsement Guide TAX DELETION ENDORSEMENT – T-30

Issuing the Form: • This endorsement may be attached to any Mortgagee Title Insurance Policy or Mortgagee Title Policy Binder

on Interim Construction Loan (Interim Binder). • Alternatively, the endorsement language (highlighted on the sample form) may be placed in a T-3 Endorsement

form. Underwriting Guidelines: • Verify that the property is not currently assessed as “agricultural” or “open space.” • Verify that there are no “roll-back” taxes due to prior assessment as agricultural/open space. Rate Rule: R-19 - $20.00 Amendment of or Endorsement Amending Exception in Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) - Applicable as provided in Rule P-20. A Mortgagee Policy or Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) may be amended in accordance with Rule P-20 upon the payment of an additional premium of $20.00. This rate rule shall be applicable to any Interim Binder currently effective but shall be applicable only to Mortgagee Policies issued from and after July 24, 1980. A separate charge of $20.00 shall be made for any such amendment to or endorsement of a Mortgagee Policy issued subsequent to the issuance of an Interim Binder and no credit shall be given for any such amendment or endorsement to any prior Interim Binder. Procedural Rule: P-20 In connection with the issuance or amendment (after issuance) of any Mortgagee Policy or of any Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder), and upon payment of the premium required under Rate Rule R-19, the words: "and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership" as contained in the standard tax exception (designated "3." in Schedule B of the Mortgagee Policy or in Schedule B-Part 1 of the Interim Binder) may be deleted by:

(a) deletion of such words upon the policy or binder form; or (b) by attachment to the policy or binder of

(i) endorsement form T-30, or (ii) a completed form T-3 providing for the deletion of the hereinbefore quoted words.




Texas Endorsement Guide ENDORSEMENT (USA) T-12

Attached to Policy No.

Issued by

________________ TITLE INSURANCE COMPANY

1. Schedule A of the above policy is hereby amended in the following particulars:

(a) Paragraph 1 of Schedule A is hereby deleted and the following is substituted:

1. The estate or interest in the land described or referred to in this Schedule covered by this policy is: (An easement for __________________)

(b) Paragraph 2 of Schedule A is hereby deleted and the following is substituted:

2. Title to the estate or interest covered by this policy at the date hereof is vested in:

THE UNITED STATES OF AMERICA

[Follow with appropriate reference to Declaration of Taking or Deed] (c) Paragraph 3 of Schedule A is hereby deleted and the following is substituted:

3. The land referred to in this policy is situated in the County of __________________, State of __________________, and is described as follows.

[Here give description of land actually acquired.]

2. Schedule B of the above policy is hereby amended in the following particulars:

(a) Paragraphs numbered ______, _______, ______ and ______ of Schedule B are hereby deleted. (Enumerate those paragraphs eliminated by proper releases, conveyances, etc.)

(b) Schedule B of the above policy is amended by adding the following paragraphs numbered _______

to _______ inclusive. 3. Subparagraph 2(d) of the General Exceptions of the above policy is hereby deleted. 4. The effective date of the above policy is hereby extended to __________________. (Date of recording of

Deed or Notice of Action, since no insurance is to be afforded as to regularity of proceedings.) The total liability of the Company under said policy and this endorsement thereto shall not exceed in the aggregate, the sum of $______________ and costs which the Company is obligated under the Conditions and Stipulations thereof to pay. This endorsement is made a part of said policy and is subject to the Schedules, General Exceptions and the Conditions and Stipulations therein, except as modified by the provisions hereof. Dated:

_______________TITLE INSURANCE COMPANY

By: _________________________________________ (Authorized Officer)

Form T-12: Endorsement (USA)


Texas Endorsement Guide ENDORSEMENT (USA) – T-12

Issuing the Form: This endorsement may be attached to a Policy of Title Insurance (USA) (T-11) after the taking by the USA. Underwriting Guidelines: When a T-11 Policy is issued before the USA acquires the estate or interest, the T-12 endorsement is issued after acquisition. Before the endorsement is issued, title should be searched through the date of recording of the document(s) creating the interest acquired by the USA. Rate Rule: R-17 Upon acquisition of title by the U.S.A., a final Certificate of Title, or an Endorsement to the Owner Policy, may be issued to the U.S.A., and the premium therefor shall be at the Basic Rate, and subject to the provisions of Rule R-3, less the premium which was paid for the Certificate of Title or Policy of Title Insurance, prior to the acquisition by the U.S.A. Procedural Rule: First paragraph of Rate Rule R-17. Policy Forms for Use by United States Government - Certificate of Title (U.S.A.), Certificate of Title for Easement (U.S.A.) and Policy of Title Insurance (U.S.A.) may be issued to the United States of America showing the condition of title to a tract of land prior to the acquisition of title to said land by the U.S.A. in an amount to be designated by the U.S.A. . . . . Completing the Form: Instructions are included in the promulgated language of the form – bolded on the facing example as a reference tool – for most of the information required. The instructions may be omitted from the completed form. The “total liability” is the amount for which the USA acquired the interest, according to information furnished by the USA. Similar ALTA or CLTA endorsement forms: None


Texas Endorsement Guide VARIABLE RATE MORTGAGE ENDORSEMENT (T-33)


Issued by


The Company insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of: 1. The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions therein which provide for changes in the rate of interest. 2. Loss of priority of the lien of the insured mortgage as security for the unpaid principal balance of the loan, together with interest as changed in accordance with the provisions of the insured mortgage, which loss of priority is caused by the changes in the rate of interest. “Changes in the rate of interest”, as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the insured mortgage at Date of Policy. This endorsement does not insure against loss or damage based upon (a) usury, or (b) any consumer credit protection or truth in lending law. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. [Witness clause optional] BLANK TITLE INSURANCE COMPANY BY: ______________________________ Form T-33: Variable Rate Mortgage Loan Endorsement


Texas Endorsement Guide VARIABLE RATE MORTGAGE LOAN ENDORSEMENT – Form T-33

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring an “adjustable mortgage loan” as defined in the procedural rule set out below. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review the note and deed of trust instruments for the adjustable rate feature.

The adjustable mortgage loan must permit adjustments of the interest rate, with such adjustment being implemented through changes in the payment amount and/or in the outstanding principal loan balance or in the loan term.

Rate Rule: R-11.d - $20, but see NOTE below. Endorsement issued as provided in Rule P-9b(6) - A premium of $20.00 shall be charged for the issuance of each endorsement authorized by Rule P-9b(6) except that such additional premium charge shall not be made if an additional premium charge has been made for the Mortgagee Policy (to which the Endorsement is attached) under the second paragraph of Rate Rule R-4. Note: Notice that there is no premium charge IF the mortgagee policy is issued for more than the loan amount (125% coverage) and, as a result, any additional premium has been collected for the MTP. Procedural Rule: P-9.b.(6) Adjustable Mortgage Loan Instruments - For purposes of this rule an "adjustable mortgage loan" shall be one which permits adjustments of the interest rate, with such adjustments being implemented through changes in the payment amount and/or in the outstanding principal loan balance or in the loan term. When a Mortgagee Policy of Title Insurance is to be issued insuring the lien securing an adjustable mortgage loan note, the company may attach to the Mortgagee Policy the Endorsement provided for in Form T-33 or Form T-33.1. A Form T-33 Endorsement or Form T-33.1 Endorsement may be issued and attached to a previously issued Mortgagee Policy insuring an adjustable mortgage loan upon the payment of any applicable premium charge and compliance with the underwriting requirements of the Company. Note: Notice that you may issue either the T-33 or the T-33.1, but not both. Completing the Form: Add the following information to the Endorsement form:


• ALTA 6 Variable Rate Mortgage (6-1-87) - Same as CLTA 111.5


Texas Endorsement Guide VARIABLE RATE MORTGAGE – NEGATIVE AMORTIZATION ENDORSEMENT (T-33.1)


Issued by


The Company insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of: 1. The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions therein which provide for: (a) interest on interest; (b) changes in the rate of interest; or (c) the addition of unpaid interest to the principal balance of the loan. 2. Loss of priority of the lien of the insured mortgage as security for the principal balance of the loan, including any unpaid interest which was added to principal in accordance with the provisions of the insured mortgage, interest on interest, or interest as changed in accordance with the provisions of the insured mortgage, which loss of priority is caused by (a) changes in the rate of interest; (b) interest on interest; or (c) increases in the unpaid principal balance of the loan resulting from the addition of unpaid interest. “Changes in the rate of interest”, as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the insured mortgage at Date of Policy. This endorsement does not insure against loss or damage based upon (a) usury, or (b) any consumer credit protection or truth-in-lending law. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. [Witness clause optional] BLANK TITLE INSURANCE COMPANY BY: _____________________________ Form T-33.1: Variable Rate Mortgage – Negative Amortization Loan Endorsement


Texas Endorsement Guide VARIABLE RATE MORTGAGE NEGATIVE AMORTIZATION LOAN ENDORSEMENT – Form T-33.1

Issuing the Form: This endorsement may be attached to any Mortgagee Title Insurance Policy insuring an “adjustable mortgage loan” as defined in the procedural rule set out below. Underwriting Guidelines: • Verify that lender's instructions require this endorsement. • Review the note and deed of trust instruments for the adjustable rate and negative amortization features.

o The adjustable rate terms permit adjustments of the interest rate implemented through changes in the payment amount and/or in the outstanding principal loan balance or in the loan term.

o Negative amortization terms provide that unpaid interest may be added to outstanding principal and that interest may be due on interest.

Rate Rule: R-11.d - $20, but see NOTE below. Endorsement issued as provided in Rule P-9b(6) - A premium of $20.00 shall be charged for the issuance of each endorsement authorized by Rule P-9b(6) except that such additional premium charge shall not be made if an additional premium charge has been made for the Mortgagee Policy (to which the Endorsement is attached) under the second paragraph of Rate Rule R-4. Note: Notice that there is no premium charge IF the mortgagee policy is issued for more than the loan amount (125% coverage) and, as a result, any additional premium has been collected for the MTP. Procedural Rule: P-9.b.(6) Adjustable Mortgage Loan Instruments - For purposes of this rule an "adjustable mortgage loan" shall be one which permits adjustments of the interest rate, with such adjustments being implemented through changes in the payment amount and/or in the outstanding principal loan balance or in the loan term. When a Mortgagee Policy of Title Insurance is to be issued insuring the lien securing an adjustable mortgage loan note, the company may attach to the Mortgagee Policy the Endorsement provided for in Form T-33 or Form T-33.1. A Form T-33 Endorsement or Form T-33.1 Endorsement may be issued and attached to a previously issued Mortgagee Policy insuring an adjustable mortgage loan upon the payment of any applicable premium charge and compliance with the underwriting requirements of the Company. Note: Notice that you may issue either the T-33 or the T-33.1, but not both. Completing the Form: Add the following information to the Endorsement form:


• ALTA 6.2 Variable Rate Mortgage – Negative Amortization (6-1-87) • CLTA 111.8 Variable Rate Mortgage – Negative Amortization (2-10-88)


Documents

LANDAMERICA TEXAS ENDORSEMENT GUIDE November 1, 2005 ... · Texas Endorsement Guide TEXAS ENDORSEMENTS AND OTHER INSURING FORMS – Alphabetic Order No. Name Procedural Rule Rate