March 2021

• Texas law allows a title company and attorney to split title fees if both parties work on the transaction.

• Hiring an outside title fee attorney can be very beneficial for buyers and lenders.

• The attorney can often be a one-stop shop to smooth out any details that arise during closing and help make sure the purchase is completed.

When I tell people this, it naturally leads to them asking me, “What the [heck] is a P-22 fee attorney? And why do I want that?” It’s a fair question. The answer I usually give is, “Its me. And because I’m nice. And fun.” But I reckon that’s a little unsatisfactory to most folks. So in this week’s article, I’m going to talk about what a P-22 fee attorney is and why it’s a good idea to hire one.

What is a P-22 Attorney

In Texas, a P-22 Attorney refers to Texas Department of Insurance Procedural Rule P-22. Under that rule, a title insurance company cannot make any payment to someone for helping with closing if that person is not an employee of that title company, unless that person or company is:

• A title company;

• A title insurance agent; or

• A lawyer.

The person with whom the title company shares fees must also help perform the closing work. This can include examining title, closing the transaction, etc.

Therefore, a result of this rule, attorneys and title companies will often work together to close transactions and split the fees from that.

Why Hire a P-22 Attorney

Now that we know what a P-22 attorney is … what’s the point? Why hire one?

I’m glad I asked. First, to get it out of the way early – a P-22 attorney does not cost the buyer or seller any additional fees that the title company isn’t already charging. As you probably know, title insurance fees in Texas are set by the State. And having a P-22 attorney involved does not change that. It’s the same cost it would be if you just had a title company.

In addition, a P-22 attorney can be very helpful in getting a deal closed. For example, an attorney can help in the following ways:

• Talks your language – a P-22 attorney has to follow the rules set up by the TDI and can only make the accommodations she is allowed to make under the law. But often a P-22 attorney also works on deals where she represents the buyer. As a result, if there is a conflict, she may understand the issue the buyer or lender is trying to resolve. And can work with the title company and the underwriter to get that issue resolved.

• One stop shop – When a P-22 attorney is involved, he or she can be the sole face of the title company/closer. Whenever an issue arises, you will know who to deal with. If there is an issue, the attorney is your contact and can help solve the problem. It often makes for a simpler, smoother transaction.

• A true closer – A good P-22 attorney understands how important it is to all sides to get a deal closed. Too often, a title company may see a request from a buyer or seller that is not possible under the TDI rules and just say, “No.” A good lawyer – a good closer – needs to be able to say, “Well we can’t do that, but lets figure out what we can do to get this deal closed.”

• Relationship – And that brings me to the final point – when having a P-22 attorney assist with closings, you can develop a relationship with that attorney. He can understand your needs and work directly with the title company to see if the insurance policy can meet those needs.

Overall, a P-22 attorney can be very helpful to a successful and smooth transaction. He or she can bridge the gap that sometimes arises between an underwriter and a buyer or lender to help ensure a purchase gets closed. And for that, a P-22 attorney can be worth his or her weight in gold.

If you are closing a deal and would like more information about fee attorneys, please call Bukowski Law Firm at 512-614-0335.

• American Airlines and Delta Air have recently announced changes that will benefit Central Texans traveling throughout the country.

• These are welcome additions because our airports have been insufficient to meet our growing demands.

• With the great expansion and momentum the region is showing, its important for our infrastructure to develop with it.

But things are getting better. The vaccines are here. Many people have received at least the first dose. And, as a result, travel is returning. 

To that end, both Delta and American Airlines made announcements that will impact travel to and from Austin in the future. In this blog article, I am going to talk about what those announcements are, why they are important, and what the future holds for Central Texas air travel. 

The Announcements 

This past week, American Airlines announced that it was making a bigger commitment to Austin. It announced that it was adding 10 new non-stop routes between Austin and cities around the country. Starting this summer, American will have twice daily non-stop service between Austin and Las Vegas, Nashville, Raleigh-Durham, and the Washington, DC area. It will also add daily non-stops between Austin and New Orleans, Orlando, and Tampa, as well as some seasonal non-stop routes. 

The day before American’s announcement, Delta Airlines announced that it was cutting back on its nationwide “focus cities.” No longer would Nashville, Cincinnati, and San Jose be focus cities. Only Austin and Raleigh-Durham will be going forward. For Delta, a focus city is less than a hub but more than just a spoke on the wheel. Austinites likely already know that being a focus city can bring the benefit of more daily flights and an exclusive lounge. 

Exciting things are happening at Austin-Bergstrom International Airport. And that’s very important for Central Texas. 

Why Expansion Continues to be Needed 

Central Texas is booming. San Antonio is the 7th largest city in the United States and Austin is the 11th. And they are growing extremely fast. By 2030, the Austin-San Antonio metro areas are projected to have more than 9 million people. 

Despite this growth, until recently, Austin’s airport has been woefully inadequate. Prior to the 2018-19 Delta nine gate expansion, ABIA had only 26 gates for a metro area of almost 2.2 million people.* Even now, with those nine additional gates, it is often difficult to get a direct flight to popular destinations throughout the country – not to mention globally. 

This – along with our other transportation and infrastructure issues – is one of the big obstacles that could slow Central Texas’s phenomenal growth. The harder it is to get around the region and around the world from Austin, the less likely global companies are going to bring jobs here. 

As a result, with more companies and more people coming to the area, we must continue to expand our airport. Its great that Delta added nine gates – but its not enough to stop there. We need to keep expanding the number of gates at our airport and the number of non-stop flights to and from it. 

It also may make sense to team with San Antonio’s airport to make sure there is not significant overlap between non-stop routes. The airports are 97 miles apart. That’s obviously not right around the corner but its close enough to potentially spread out the non-stop routes to provide the most coverage to the most Central Texans. 

Central Texas has amazing growth and momentum. Lets not let a lack of insfrastructure slow that down. 

*Austin’s south terminal also has 3 additional gates.