As the new contracts roll out this month we wanted to focus specifically on the changes to the survey paragraphs for this month’s Closer’s Corner.
A new form, the T-47.1 declaration, was discussed in a prior Closer’s Corner: T-47 Affidavit Changes and a New Friend (T-47.1) | Texas National Title. That form may now be used since the contracts have been updated. Paragraph 6(C) now includes two forms that a seller may choose from to provide along with their existing contract. They can now provide the T-47 Residential Real Property Affidavit, or they can provide the T-47.1 Declaration form.
It is important to note that one of the two forms is still required to accompany the survey if Paragraph 6(C) is chosen as part of the offer being made by the buyer. Often times, we receive either the survey or the T-47 but not both. Not providing both the affidavit/declaration and the survey may result in the buyer ordering a new survey at the seller’s expense.
Please also note that there has been no change with respect to those surveys that are deemed unacceptable to either the title company or the lender involved in the transaction. The last sentence in this paragraph still governs who pays for a new survey but this feature only comes into play once the seller has provided both the survey and the T-47 or T-47.1.
Choosing between the T-47 and T-47.1:
While on the surface these forms look very similar, however, there are two big differences between these forms. The biggest difference deals with the requirement (or not) for a notarization of the form. The T-47 still requires that the document be notarized to be a complete affidavit.
The T-47.1 does not require a notary which initially seems like it would be the preferred form to use since it allows for easier execution and can now be signed by electronic signature. But wait…. not so fast…….
Before instructing a seller to use the T-47.1 all realtors should make sure that they understand the full requirements to provide a complete declaration. Most notably, for the declaration to be complete, the seller must include their date of birth on the document. The signature of the form looks like this:
Many sellers will be uncomfortable providing their date of birth, name and address in this form, so this is something to discuss with the sellers before offering it as an option. Click here to see the T47.1: T-47_1_revised.pdf
The T-47 and T-47.1 both now require that the seller make legal representations back to the date of the survey. What if my client is uncomfortable making that representation?
Many times, if a seller obtained an existing survey when they bought the property, they are uncomfortable signing the T-47 to assert that there have been no changes back to the original date of the survey. The T-47 (and T-47.1) have been modified to remove the option to fill in another date and instead now both mandate that date. If a seller is unwilling or unable to make that assertion, then a new survey would be required for closing.