Hi all - we are an Oklahoma lender and not familiar with all the Texas-specific RE fees.

When we got the draft CloD from the law office in TX, they showed a $43.30 "Tax Cert". Our processor asked if this was a fee required to issue the title insurance policy. The law office said it is the fee to obtain the tax certificate for closing.

In Oklahoma, we are not required to obtain a tax certificate. The tax information is available free online in Oklahoma with our County Treasurer sites (most of them that are up-to-speed technologically, anyway).

NOTE that we as the lender are NOT requiring the taxes to be paid at closing (none in prepaids) and are NOT setting up an escrow account either. Therefore, we as lender are not requiring any sort of proof of the taxes having been paid.

The title company is showing it payable to "Texas Real Tax Services, Ltd.".

Do you know if this is a fee related to issuance of the title policy? If so, then it will go with our other title fees in 10% cumulative tolerance (we gave them a SPList and used the title co in TX that we knew they were closing with).

Thanks in advance.

Without it, I don't think the title company is going to insure you against taxes that are due and payable. Pretty common in Texas.

So I feel it's a component to/requirement of the title insurance, right?

Likely, you could get title, but the portion of your policy stating that all taxes due are current - there will be an exception in that portion of your title policy.

Some counties here in Texas are online, but the certificate or service to get the certificate varies from title company to title company. Our local title companies charge $10 and request it directly from the county. A title company in the Dallas area charged about $60 per tract of land because they used a service to order the same. We quoted the $10 per tract/taxing entity - and we ate the difference above 10%. But, it depends on your tolerance and whether you allowed them to shop/gave them a list etc.

Thank you. Do you list this fee 'itemized' as a required service on your Service Provider List and the LE?

TRID2 clarified we do not have to itemize fees that are components of a required service. We DO list components of title insurance and closing that are typical here in Oklahoma (like title exam fee, gap search, etc.)...but sometimes there are the non-typicals (mainly when the customer selects a title company not on our SPList) that we put in "title - other title services".

Yes - every Texas title company includes the service as a condition of issuing the title policy without exceptions. It would be listed as "Title - "

3. Title insurance services. The services required to be labeled beginning with “Title –” pursuant to § 1026.37(f)(2) or (3) are those required for the issuance of title insurance policies to the creditor in connection with the consummation of the transaction or for conducting the closing. These services may include, for example:


iii. Resolution of underwriting issues and taking the steps needed to satisfy any conditions for the issuance of the policies;