Did you ever wonder what Paragraph 6 (A)(8) of the TREC 1 to 4 Family Residential Contract is all about?

It’s about the Buyer deciding if he/she wants coverage against discrepancies, conflicts, boundary line issues, encroachments, protrusions and overlapping improvements that are not disclosed by a survey of the property covered by the contract.

The title policy does not, as a general rule, insure the Buyer against loss resulting from discrepancies, conflicts, boundary line issues, etc. that are identified in the survey of the property.

TThe Owner’s Policy of Title Insurance does not automatically provide Survey Coverage. The Buyer has to request the coverage by checking the “will be amended box” in Paragraph 6. (A)(8):

The words “shortages in area” will not be deleted from the Title Policy because the Texas Department of Insurance (TDI - the entity that regulates the Title Insurance Industry) does not allow title companies to insure acreage and square foot calculations.

How much does survey coverage cost? For Residential Real Property purchased by individual insureds, the costs is an additional 5% of the policy premium. That cost would equate to:

For more information about Survey Coverage, contact one of our Escrow Officers.

(8) The standard printed exception as to discrepancies, conflicts, shortages in area orboundary lines, encroachments or protrusions, or overlapping improvements: (i) willnot be amended or deleted from the title policy; or (ii) will be amended to read, “shortages in area” at the expense of Buyer Seller.

ALLEN955 SH 121, Suite 100Allen, Texas 75013Phone: 469-640-3100

FRISCO1415 Legacy Drive, Suite 230

Frisco, TX 75034 Phone: 972-668-5900

IRVING/LAS COLINAS7520 N. MacArthur, Suite 120

Irving, TX 75063 Phone: 972-443-1450

LAKEWOOD6465 E. Mockingbird Ln, Suite 450

Dallas, TX 75214 Phone: 214-826-3100

NORTH DALLAS16000 Preston Road, Suite 314

Dallas, TX 75248 Phone: 972-715-0160

PARK CITIES5950 Berkshire Lane, Suite 125

Dallas, TX 75225 Phone: 214-451-0600

PLANO5013 W. Plano Parkway, Suite 200

Plano, TX 75093 Phone: 469-737-5150

RICHARDSON3621 Shire Blvd., Suite 200 Richardson, TX 75082 Phone: 469-330-1067

SOUTHLAKE1575 E. Southlake Blvd., Suite 110

Southlake, TX 76092 Phone: 817-577-5111

ROANOKE361 West Byron Nelson Blvd., Suite 200

Roanoke, TX 76262 Phone: 817-693-0044

Corporate Headquarters10233 E. Northwest Hwy, Suite 436

Dallas, TX 75238Phone: 214-373-1516

WHAT ISSURVEY

COVERAGE?