If you want to protect yourself from damage caused by potential mineral extractions on a property you’re buying, you’ll have to look further than your title policy. We dig into the three different types of T-19s, where to find them and the protection they offer.

When you’re buying a piece of land, it’s vital that you understand what the T-19 endorsements are. T-19 endorsements are additional coverage to your owner’s title policy that protect you as the new landowner. Ironically, these aren’t even mentioned on the Texas Real Estate Commission contract or the Texas Association of Realtors contract. So, you’ll need to request these from the title company before closing. The three different T-19 endorsements are T-19.1, .2 and .3. So what are the differences between the three?

The T-19.1 endorsement is additional coverage as it relates to unknown matters at the time of closing against any previous violations of restrictions, as well as, damage to improvements of the property from an existing right to extract or develop minerals. Obviously, oil and gas are big business here in Texas and many landowners will reserve their mineral rights even if they sell their property. Now, in my opinion, this is okay when purchasing property as long as they waive their ingress and egress to the surface rights of the property. But, it’s important that you understand the implications of all this, especially if you wish to develop the property. The cost of a T-19.1 endorsement will be 15% of the cost of the owner’s title policy for vacant land or 10% of the owner’s title policy cost if purchased with the area and boundary coverage. We discussed what the area and boundary coverage was in a previous video that you can refer back to.

Lastly, the T-19.2 and .3 endorsements are essentially the same thing, as they both provide additional coverage against any damage to existing or future improvements or buildings on the property. The T-19.2 endorsement relates to improved property or to be improved property, whereas the T-19.3 relates to property that is vacant. With these T-19 endorsements, .2 and .3 specifically, these are only fifty dollars each and they can be purchased separate from the T-19.1 endorsement. So, if you’re buying any land that has minerals that are owned by another party and there could be a future extraction of the minerals, you’d be absolutely crazy to not get, at the very least. the T-19.2 or .3 endorsements because they’re so cheap.

Feel free to reach out to us with questions or other topics you’d like to see covered.

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