Texas Senate Bill SB2203

Texas 2017 - 85th Regular

Caption

Relating to the business of title insurance.

Impact

The bill permits title insurance companies and agents to utilize a uniform settlement statement form adopted under federal law instead of the state-prescribed forms. This flexibility is expected to enhance transparency in the transaction process, requiring detailed disclosures about title insurance premiums and other fees associated with closing. The changes could lead to more uniform practices across the state, as local entities can implement these federal forms in place of existing state forms, potentially reducing confusion for consumers and professionals alike.

Summary

Senate Bill 2203 addresses the regulations surrounding title insurance practices in Texas. The bill amends Section 2702.051 of the Insurance Code to clarify the applicability of certain regulations to residential real property transactions as defined by the Real Estate Settlement Procedures Act of 1974. This update aims to streamline the processes governing title insurance and related activities, particularly around the closing and settlement of real estate transactions.

Contention

While supporters argue that standardizing forms and procedures will foster efficiency and improve consumer understanding, some critics express concerns about the potential erosion of state regulatory authority and oversight. The move to align state practices closely with federal guidelines may lead to apprehensions about maintaining strong state laws that protect consumers. Moreover, the effective date of certain provisions, specifically those pertaining to transactions closing after January 1, 2018, could create transitional challenges for businesses adapting to this new regulatory framework.