Underwriting Q&A: Do Texas title companies offer “survey coverage”?

Q: Do Texas title companies offer “survey coverage”?

A: No. Unfortunately, over the years our industry has used the slang term “survey coverage” to describe various policy endorsements that may be available on a proposed transaction. However, the over use of the term has resulted in a misunderstanding of the actual coverage provided by the related endorsements.

While this subject warrants a more lengthy discussion, this blog is limited to the basics. First, Texas does not offer any endorsement titled “survey coverage”. Additionally, neither the policy nor any endorsements to a policy offer coverage insuring the correctness or accuracy of a survey. The two most common endorsements referenced by the term “survey coverage” are the Amendment of Exception to Area and Boundaries (Procedural Rule P-2) and the Restrictions, Encroachments, Minerals Endorsement (Procedural Rule P-50). Again, neither endorsement guarantees the correctness or accuracy of a survey. The connection between the two endorsements and the term “survey coverage” arises due to the necessity to review a valid survey for purposes of determining whether the proposed endorsement will be offered and if so what specific exceptions may be necessary. In the case of the Amendment of Exception to Area and Boundaries, the rule requires a review of a new survey or an existing survey accompanied by a T-47 Affidavit (see rule P-2 for specific requirements). In the case of a request to issue the Restrictions, Encroachments and Minerals Endorsement, while not specifically provided for by the procedural rule, due to the coverages offered in the endorsement, in certain instances the underwriter may require a survey or evidence of a survey be provided for review in order to make a final determination as to the issuance of the endorsement.

Also, please note that when completing the T-47 Residential Real Property Affidavit, the requested date in line item #4 is the date of the existing survey being used in connection with the T-47, not the date that the Affiant took title to the property.

Finally, while the two endorsements are often referenced together as “Survey Coverage” and often requested by lenders as though they represent a single endorsement, please note that the two endorsements are separate endorsements and each can be issued independent of the other therefore it is important to clarify exactly which endorsement is being requested, if in fact a proposed insured is requesting “Survey Coverage”.
The bottom line: Texas Title Insurance Policies and accompanying endorsements do not insure the accuracy or correctness of a survey, nor does Texas offer any endorsements title “Survey Coverage”. The two most common endorsements being request under the slang term “Survey Coverage” are the Amendment of Exception to Area and Boundaries (Procedural Rule P-2) and the Restrictions, Encroachments, Minerals Endorsement (Procedural Rule P-50). The only relationship between a survey and these endorsements is that a survey may be used as a tool for determining whether the requested endorsement will be issued.

As always, should you have any question relate to this topic, please do not hesitate to call your friendly First National Title Insurance Company underwriter.

Have a fantastic day!