When the property in your transaction is currently subject to an agriculture or open space "special use valuation" on the tax or appraisal roll, you may provide the rollback protection on a Loan Policy or Binder as stated in Procedural Rule P-20B if the following requirements are met:
1. At the request of the landowner, the Appraisal District triggers the rollback and the rollback assessments are paid prior to or at closing; or
2. The Appraisal District provides a letter indicating (a) the special use valuation has been removed from the land for the current tax year and (b) no rollback will occur nor will any taxes be due on the property because of such removal.
If you have any questions, please contact Underwriting Counsel below:
