It is important to remember that the new closing disclosure forms, created by the CFPB, are federal loan forms and these promulgated forms are used in all 50 states. This allows for consistency when consumers are buying or selling real estate. Since each state has their own set of regulations, regarding real estate, they may have their own disclosures that will need to be executed at closing in addition to the federal forms. In Texas, the Texas Department of Insurance created the Texas Disclosure (Form T-64) to adhere to Texas regulations.
The Texas Disclosure:
- Explains and breaks out simultaneous title policy premium rates.
- Itemizes title company fees and recording fees if combined on CD.
- Specifies all agents receiving a portion of the commission.
- Allows the consumer/seller to authorize the title company to fund and disburse.
Per the Texas Department of Insurance, anyone that receives funds from a real estate transaction must be disclosed at closing. The Texas Disclosure does allow all the payees on the Commission Disbursement Authorization (DA) to be listed on the disclosure. This section of the document is on the page that is signed by the consumer and seller at closing, unlike page 2 of the 2010 HUD. If the title company does not have an agent’s DA prior to the consumer or seller executing this document, one check will be cut at funding directly to their broker. This will have no affect the other agent in the transaction as long as their DA is received in a timely manner.