Tex. Ins. Code § 2703.052 · Subchapter B. POLICY PROVISIONS
DUTY OF TITLE INSURANCE COMPANY.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) On a report to a title insurance company made by an insured after a title insurance policy has been issued that a lien, encumbrance, or title defect exists that is not excepted under the policy or otherwise excluded from coverage, the company shall promptly investigate to determine whether the lien or encumbrance is valid and not barred by statute or other law.
(b) A title insurance company that concludes that a valid lien or encumbrance that is not barred by statute or other law exists or that a title defect exists shall:
(1) institute all necessary legal proceedings to clear the title to the property;
(2) indemnify the insured according to the terms of the policy;
(3) reinsure at current value the title to the property without making exception to the lien, encumbrance, or defect or indemnify another insurer for reinsuring the title without making exception to the lien, encumbrance, or defect;
(4) secure a release of the lien, encumbrance, or defect; or
(5) take a combination of the actions described by this subsection.
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2703.htm
- Text hash
- sha256 c4c5a7a7e8b410abda54f6037d15d0b9ad78d1c2a6e7430011e5c653bb870872
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.