Opinion ID: 2452458
Heading Depth: 1
Heading Rank: 1

Heading: agency of grynwald

Text: It may be assumed for present purposes that the agreement or conditions imposed by Northland upon the disbursement of its funds to Dal-Rich required that Grynwald or his principal, if any, guarantee the authenticity of the estoppel letters. This record contains no evidence that Southwest Title authorized Grynwald to make that guarantee on its behalf. Southwest Title had certified Grynwald to be an approved examining attorney, which meant simply that his opinion on land titles would be accepted. Under the Insurance Code of Texas only the operators or owners of abstract plants may be title insurance agents, and they in turn may employ their own escrow agents to disburse escrow funds. Art. 9.02(f) and (g). These title insurance agents and escrow agents must be licensed by the State Board of Insurance. Arts. 9.35 et seq. and arts. 9.41 et seq. The agency of the title insurance agent is for the solicitation and issuance of title insurance. Art. 9.02(f). Grynwald's relation to Southwest Title and its title insurance agents was limited to their willingness to accept his legal opinion on land titles. It may be further assumed that Grynwald had the authority to close the assurance of the issuance of the title insurance policy. No question about that matter arises, because the title policy has been issued and Southwest Title stands behind the terms of the policy. The arguments in the case confuse the closing of a title insurance contract and the closing of the entire transaction between Northland and Dal-Rich which required the satisfaction of numerous conditionsincluding the acquisition of estoppel letters from Citizens State Bank. There is no evidence in this record that Southwest Title conducts any business other than the issuance of title insurance or that it authorized Grynwald or anyone to conduct and accept responsibility for the details and conditions of loan transactions. There is no evidence of apparent authority of Grynwald to do more. His possession of blank title policy forms could bear only upon the authority to issue the title policy. If his endorsement of the check made payable to Southwest Title, and his conducting the closing in response to Northland's letter addressed to Southwest Title, can be said to have given appearance of wider authority, none of this was known or traceable to Southwest Title. Only the conduct of the principal, leading one to suppose that the agent has the authority he purports to exercise, may charge the principal through the apparent authority of an agent. Chastain v. Cooper & Reed, 152 Tex. 322, 257 S.W.2d 422 (1953). Nor can it be held that Southwest Title has ratified a wider exercise of authority on its behalf. The only benefit Southwest Title has received is the insurance premium, and Northland has at all times affirmed that portion of the transaction and insisted upon the performance by Southwest Title of the terms of the insurance contract.