Section 5: Closing
Prerequisites to Closing
Before the LPA can close the sale of a property, it must provide clear title, title insurance and resolve outstanding property tax liabilities. For more information on clouds on title and title insurance, see the
ROW Acquisition Manual
,
.For past-due taxes, the means of resolving tax liability will depend on if the property is a whole taking or a partial taking. Condemnation may be necessary. For current taxes on whole takings, the LPA must cooperate with taxing agencies for payment of taxes on a prorated basis. If the property owner and the taxing agencies cannot agree on a method for payment, the LPA should pay the property owner without regard to taxes. See the
ROW Acquisition Manual
,
.Instruments of Conveyance
Instruments of conveyance will be prepared on TxDOT standard forms. TxDOT will accept full warranty deeds, TxDOT form
. In those cases where a property owner refuses to sign a full warranty deed, TxDOT will accept a special warranty deed, provided that the title company will guarantee title without an exception due to the special warranty language. For more information on preparing deeds, see the
ROW Acquisition Manual
,
.In addition, there are some special clauses approved for use in conveyance instruments covering situations such as retained improvements, bisected improvements, and pass privileges. See the
ROW Acquisition Manual
,
for more details. Aside from these special clauses, no changes to TxDOT's conveyance instruments are permitted.Recording
The LPA is responsible for recording at its own expense deeds, judgments, or other instruments in the real property records of each county in which the property is located.