Dear Ralph:
On January 16, 1968, you wrote me as follows:
"We have been requested to delete to survey exception in the in Interim Construction Loan Binder based on the plat of the subdivision with the understanding that such deletion applies as conditions existed at the time of filing of the subdivision plat. At the time of the first draw, a current survey will be furnished.
"It occurs to me that a subdivision plat is not such survey as is contemplated by Rule 17. I would further think that if such deletion is properly qualified the lender is not getting much protection. However, I also know that if something goes wrong the blame will be will be placed on the title company. We have been advised that other title companies do follows this procedure.
I would appreciate your reactions."
The recorded plat of a subdivision does not, in my opinion, constitute a survey of the property as provided in Rule 17 of the Basic Manual, unless such subdivision plat has attached to it, an adequate certificate by the surveyor who prepared the plat, certifying that the property was surveyed on the ground in such manner and form as would take the place of an individual survey certificate attached to a separate survey of the vacant lot involved.
If such information is furnished to the title insurance company at the time of the issuance of a Construction Binder and assuming that such information is in form and substance satisfactory to the title insurance company and is presented, as you stated in your letter, with the understanding that such deletion applies as to conditions existing at the time of filing of the subdivision plat and that at the time of the first construction draw, (Obviously, after the foundation has been poured) a current survey will be furnished, it would probably represent good legal and business judgment to qualify the deletion of the survey exception in the Construction Binder by stating such "understanding and agreement" in the Binder following the deletion.
I am sending a copy of this letter to all Title Insurance Companies and Agents, and I trust that I have adequately answered your query.
Sincerely,
By: /s/ V. C. McNamee
V. C. McNamee
Director of Title Insurance
VCMcN:pg
cc: To all Title Insurance Companies licensed to do business in the State of Texas and all Agents thereof: