Section 175.7 - Title Examination(a) The board will designate an attorney or title company in the county where the land is located to serve as its closing representative. The veteran or seller may submit the name of a closing representative for the board's consideration. The representative will be paid $25 for closing the transaction. The board will also pay up to $30 to cover recording costs. The board will not pay a representative for preparing and filing application papers, drafting instruments, or for rendering services of a similar nature. If an attorney provides such services he is to be paid directly by the veteran or seller.(b) It is the seller's responsibility to obtain a commitment for title insurance and to provide copies of it to the closing representative and the board.(c) The seller shall also provide the following, as applicable: (1) releases of any outstanding liens;(2) proof that all taxes have been paid through the last taxable year;(3) evidence that taxes have been prorated as of the date of sale, or that satisfactory arrangements have been made with the veteran regarding taxes, including rollback taxes;(4) releases of any mineral leases that have expired, or an affidavit of nonproduction and nonpayment of annual delay rentals;(5) any instruments in the chain of title necessary for the board to make a proper showing of ownership to a lessee under an existing mineral lease; and(6) fees for recording all instruments other than the deed from the seller to the board and the contract of sale between the board and the veteran.(d) Among other things, the veteran will be required: (1) to furnish a fire and hazard insurance policy if there are any improvements on the land which have been considered by the board in determining the amount to be invested, together with a receipt showing the first year's premium has been paid; and(2) to execute an affidavit showing that he has taken possession of the land, has inspected the land, and found no one in adverse possession and that the taxes have been prorated to his satisfaction.(e) The staff of the board will prepare a deed sufficient to convey title to the land from the seller to the board. If the seller wishes to have a deed prepared and furnishes it to the board, this deed must: (1) name the Veterans Land Board of the State of Texas as grantee;(2) state the full and true consideration to be paid;(3) specify all reservations of oil, gas, and other minerals affecting the property;(4) specify all easements, leases, and/or other exceptions which might affect the property; and(5) contain a general warranty; special warranty deeds are not acceptable, except where specifically authorized by the chairman of the board, chief clerk, executive secretary, or assistant executive secretary.(f) The staff of the board will prepare the deed upon submission of a title commitment and other closing papers. The seller may at his or her sole expense arrange to have a proposed deed furnished to the board for approval. The board's use of such a deed will in no way reduce any fees charged by the board for title examination and deed preparation.(g) When the title insurance commitment has been completed and submitted, the closing representative shall forward it, along with the original and one copy of the proposed deed, if any, to the board. The board must also be provided copies of all reservations and exceptions listed in the title insurance commitment or proposed deed. The board's attorneys will examine the closing papers (and draft a warranty deed if needed). If all is in order, the board will request the state comptroller to issue a treasury warrant in the amount of the purchase price. When the warrant is received by the board, it will be forwarded with the other closing materials to the representative so that the transaction can be completed.(h) When the closing representative is satisfied that all closing requirements have been met, he shall require the seller to execute and tender the deed, and shall, on behalf of the board, tender the consideration to the seller. The closing representative shall also require the veteran to execute the contract of sale and purchase. The veteran must execute this personally, no other person is authorized to execute it for him.(i) The closing representative shall file the deed and contract of sale and purchase for recording, together with any additional instruments which should be recorded. The recorded originals of the deed to the board and the contract of sale and purchase shall be sent to the board, where they will be made a part of the veteran's permanent file.(j) The board has obtained a group credit life insurance policy and a group disability policy for the benefit of both veterans and non-veterans who are purchasing land through the program. If the contract holder obtains the group credit life insurance and dies while it is in force, the principal balance of the veteran's account as of the date of death will be paid in full in accordance with the terms of the policy of insurance. If the contract holder obtains the group disability insurance and becomes disabled, the account holders regularly scheduled payments will be made in accordance with the terms of the policy of insurance. The policy or policies will be terminated when the contract holder dies or pays the account in full.40 Tex. Admin. Code § 175.7
The provisions of this §175.7 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective October 19, 1987, 12 TexReg 3602; amended to be effective March 22, 1991, 16 TexReg 1472