Closing the Transaction

Sec. 2501.006. CLOSING THE TRANSACTION. (a) For purposes of this title, "closing the transaction" describes the investigation that is made: (1) on behalf of a title insurance company, title insurance agent, or direct operation before the title insurance policy is issued; and (2) to determine proper execution, acknowledgment, and delivery of all conveyances, mortgage papers, and other title instruments necessary to consummate a transaction. (b) Closing the transaction includes a determination that: (1) all delinquent taxes have been paid; (2) in the case of an owner title insurance policy, all current taxes, based on the latest available information, have been properly prorated between the purchaser and seller; (3) the consideration has been passed; (4) all proceeds have been properly disbursed; (5) a final search of the title has been made; and (6) all necessary papers have been filed for record. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.