SB 364 Modifies the title insurance law with respect to the performance of escrow, settlement, or closing services by title insurers, agencies, and agents
Sponsor: Parson
LR Number: 1682S.01I Fiscal Note available
Committee: Small Business, Insurance and Industry
Last Action: 5/17/2013 - S Informal Calendar S Bills for Perfection--SB 364-Parson Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2013

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Current Bill Summary


SB 364 - This act clarifies current law by providing that a title insurer, title agency, or title agent may perform escrow or closing services in residential real estate transactions by giving notice to affected persons that their interests are not protected by the title insurer, agency, or agent in situations where the title insurance policy is not being issued by the title insurer, agency, or agent performing the escrow or closing services. In the same vein, the act further clarifies that in situations where title insurers, agencies and agents are exclusively performing escrow, settlement, or closing services, it is unlawful for such entities to do so unless they clearly disclose to the sellers, buyers, and lenders involved in such escrows, settlements, or closings that no title insurer is providing any protection for closing or settlement funds (Section 381.022).

Under current law, a title insurer is expressly authorized to issue closing or settlement protection letters in all transactions where its title insurance policies are issued and where its issuing agent or agency is performing settlement services and shall do so in favor of and upon request by the applicable buyer, lender, or seller in such transaction. This act clarifies this provision of law by limiting its application to residential real estate transactions (Section 381.058).

STEPHEN WITTE