| (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.
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| Source Note: 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 |
