Sec. 2501.006.  CLOSING THE TRANSACTION.  (a)  For purposes of this title, "closing the transaction" describes the investigation that is made:
(1)  on behalf of a title insurance company, title insurance agent, or direct operation before the title insurance policy is issued;  and
(2)  to determine proper execution, acknowledgment, and delivery of all conveyances, mortgage papers, and other title instruments necessary to consummate a transaction.
(b)  Closing the transaction includes a determination that:
(1)  all delinquent taxes have been paid;
(2)  in the case of an owner title insurance policy, all current taxes, based on the latest available information, have been properly prorated between the purchaser and seller;
(3)  the consideration has been passed;
(4)  all proceeds have been properly disbursed;
(5)  a final search of the title has been made;  and
(6)  all necessary papers have been filed for record.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005.