HB3009 went into effect July 1, 2007

In summer 2005, OAR visited each district for a special meeting. During these district meetings, the number one concern expressed by members across the state was problems within the abstracting and title insurance industries. In some parts of the state, we learned it could take up to 60 days for a completed abstract. In light of the comments from our membership, OAR approached reform to the abstracting and title insurance industry with three goals in mind: timeliness, customer service/affordability and competition.

Last year, OAR partnered with the Oklahoma Land and Title Association (OLTA), the group that represents abstractors, on HB3009, authored by Rep. Fred Morgan, R-Oklahoma City, and Sen. Brian Crain, R-Tulsa. HB3009 contained key provisions that addressed our goals in the following manner:

TIMELINESS – HB3009 implements deadlines for abstract completion, ranging from 12 to 20 days depending on platted or unplatted property, and whether or not an existing abstract was available. These timelines exist under current abstracting rules, but complaints must be filed as misdemeanors with the District Attorney. HB3009 allows the State Auditor and Inspector or the newly created Board of Abstractors to enforce administrative fines when these deadlines are missed. Also, if an abstracting company repeatedly violates these timelines, then the governing agencies may issue a temporary certificate of authority to issue abstracts in the affected county.

CUSTOMER SERVICE/AFFORDABILITY – In addition the deadlines which will increase customer service, HB3009 also allows for a title insurance policy to be based on a supplemental abstract that goes back to the prior owner’s policy of title insurance, not the complete abstract required under current law. We believe this measure will create a quicker and more affordable procedure for the consumer.

COMPETITION – As mentioned above, should an abstract company have repeated violation of the law, the governing agencies may issue a temporary certificate of authority for another company to provide abstracts in the affected county.

HB3009 went into effect July 1, 2007. To read a complete version of the legislation, click here.