| (a) To qualify for subdivision loan processing a seller must: (1) have, or plan to have at least five tracts of land available for sale to veterans in the same subdivision or development; (2) agree to comply with all local ordinances and regulations regarding the subdivision or resubdivision of land; and (3) agree to provide the services and materials described in this rule to interested veterans in order to facilitate the board's processing of loans. (b) A written request for subdivision loan processing of an existing or proposed subdivision must be submitted to the board. (c) Those sellers who qualify for subdivision loan processing may request the board to perform a preliminary appraisal of the subdivision. This preliminary appraisal process will include: (1) Establishing high and low per acre values for the subdivision. The board will use these valuations in determining how much it will loan for the purchase of tracts in the subdivision. (2) Advising the seller, when appropriate, of the best subdivision plan, so as to maximize land values of the gross acreage for sale. (3) Discussing requirements for roads, easements, water sources and other factors affecting land values. Recommendations will be made if appropriate. (d) A fee is charged for the preliminary subdivision appraisal. (e) After the preliminary appraisal has been completed and the seller indicates that tracts within a subdivision are ready for sale to veterans, the seller may make arrangements with the board for appraisals of specific tracts. The board will commit itself to a loan value based upon these appraisals even though a specific veteran purchaser has not yet been identified. To obtain these appraisals, the seller must: (1) Supply a ground survey of each tract of land by a registered surveyor. (2) Submit to the board a certified copy of a recorded subdivision plat, if the tracts are to be sold by lot and block numbers. This plat must contain evidence that it has been approved and accepted by the county commissioners. (3) Obtain a title insurance commitment for each tract; (4) Request a field appraisal of each tract by the board. A fee is charged in advance for each appraisal. This fee will be refunded to the seller if the tract is sold to a veteran through the Veterans Land Program; and (5) Furnish a recorded subdivision plat, if requested by the board. (f) Sellers may arrange to obtain application packets from the board. (g) Sellers using the subdivision loan processing system should help veterans complete all forms and documents required for processing and closing loans. Sellers will also be responsible for having veterans: (1) submit the correct amounts for down payments and fees required by the board; and (2) provide any missing documentation needed in order to qualify, process, or close a loan. (h) Completed application packets must be received by the board within 30 days of the date the application contract is signed. (i) Application packets are to be submitted by the seller and must include: (1) a copy of the recorded subdivision plat or other evidence of compliance with local regulations and ordinances; and (2) a title insurance commitment for the tract to be purchased. (j) Due to the nature and purpose of the subdivision loan processing program, it is the seller's responsibility to work with the veteran and the board to expedite the processing of the loan. For this reason it is suggested that the seller designate one individual to serve as a contact person with the board. This person should be familiar with the board's forms, rules, procedures, and any other requirements necessary for successful processing of the loan. In this regard it is also suggested that the contact person familiarize himself and maintain regular contacts with the board's field staff, local veterans' service officers, and the title company providing insurance. |
| Source Note: The provisions of this §175.19 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838; amended to be effective September 18, 2003, 28 TexReg 7998 |
