1 STATE OF OKLAHOMA
1
2 1st Session of the 59th Legislature (2023)
2
3 SENATE BILL 979 By: Howard
3
4
4
5
5
6
6
7 AS INTRODUCED
7
8 An Act relating to abstracting; amending 1 O.S. 2021,
8 Sections 21, 32, 35, 36, 41, and 43, which relate to
9 the Oklahoma Abstractors Act; modifying definitions;
9 providing exception for determination of certain
10 unnecessary delay; increasing certain civil penalty;
10 requiring notice to Oklahoma Abstractors Board for
11 certain noncompliance; requiring response to notice
11 within specified time period; defining term;
12 increasing certain civil penalty; modifying
12 definition; prohibiting reliance on county index for
13 preparation of abstract of title; clarifying civil
13 penalty for certain violation; increasing certain
14 civil penalty; requiring release of certain abstract
14 or insurance policy upon written request; increasing
15 certain civil penalty; updating statutory language;
15 updating statutory reference; and providing an
16 effective date.
16
17
17
18
18
19
19
20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
20
21 SECTION 1. AMENDATORY 1 O.S. 2021, Section 21, is
21
22 amended to read as follows:
22
23 Section 21. As used in the Oklahoma Abstractors Act:
23
24
24
Req. No. 728 Page 1
 1 1. “Abstract of title” is means a compilation in orderly
1
2 arrangement of the materials and facts of record, in the office of
2
3 the county clerk and court clerk, affecting the title to a specific
3
4 tract of land issued pursuant to a certificate certifying to the
4
5 matters therein contained;
5
6 2. “Abstract plant” shall consist of means a set of records in
6
7 which an entry has been made of all documents or matters which
7
8 legally impart constructive notice of matters affecting title to
8
9 real property, any interest therein or encumbrances thereon, which
9
10 are filed, recorded and currently available for reproduction in the
10
11 offices of the county clerk and the court clerk in the county for
11
12 which such abstract plant is maintained. Such records shall consist
12
13 of:
13
14 a. an index in which notations of or references to any
14
15 documents that describe the property affected are
15
16 included, according to the property described or in
16
17 which copies or briefs of all such documents that
17
18 describe the property affected are sorted and filed
18
19 according to the property described, which is compiled
19
20 from the instruments of record affecting real property
20
21 in the county offices and not copied or reproduced
21
22 from any county index, and
22
23 b. an index or files in which all other documents,
23
24 pending suits affecting real property and liens,
24
Req. No. 728 Page 2
 1 except ad valorem taxes and special assessments, are
1
2 posted, entered, or otherwise included, according to
2
3 the name of the parties whose title to real property
3
4 or any interest therein or encumbrances thereon is
4
5 affected, which is compiled from the instruments of
5
6 record affecting real property in the county offices
6
7 and not copied from any county index;
7
8 3. “Abstract license” is means the authorization for a person
8
9 working for a holder of a certificate of authority to search and
9
10 remove from county offices county records, summarize or compile
10
11 copies of such records, and issue the abstract of title;
11
12 4. “Act” or “Oklahoma Abstractors Law” means the Oklahoma
12
13 Abstractors Act;
13
14 5. “Board” means the Oklahoma Abstractors Board;
14
15 6. “Certificate of authority” is means the authorization to
15
16 engage in the business of abstracting in a county in this state,
16
17 granted to a person, firm, corporation, or other entity, by the
17
18 Oklahoma Abstractors Board;
18
19 7. “Permit” is means the authorization to build an abstract
19
20 plant in a specific county; and
20
21 8. “State Auditor and Inspector”, for the purposes of the
21
22 Oklahoma Abstractors Act, means the Oklahoma Abstractors Board; and
22
23 9. “Authorized agent” or “representative” of a current owner or
23
24 insured means a real estate broker, real estate agent, lender,
24
Req. No. 728 Page 3
 1 attorney, title insurer, title insurance agent, escrow agent, or
1
2 other duly appointed agent of the current owner or insured under a
2
3 policy of title insurance authorized to act on behalf of such
3
4 current owner or insured in a current transaction.
4
5 SECTION 2. AMENDATORY 1 O.S. 2021, Section 32, is
5
6 amended to read as follows:
6
7 Section 32. A. All abstractors shall furnish abstracts,
7
8 abstract extensions, supplemental abstracts or final title reports
8
9 as desired, to the persons applying therefor, in the order of
9
10 receipt of a valid order therefor, without unnecessary delay, and
10
11 for reasonable compensation pursuant to the requirements of the
11
12 Oklahoma Abstractors Act. A valid order is a written order from the
12
13 person applying for the order who is a party to the transaction
13
14 containing the following elements:
14
15 1. A complete and accurate legal description or a complete and
15
16 accurate address, as applicable;
16
17 2. The availability of any necessary base abstract; and
17
18 3. An up-front commitment to pay for the order either upon
18
19 delivery or other payment conditions agreed to by the parties to the
19
20 transaction or a stated cancellation fee amount.
20
21 B. Failure of an abstractor to furnish an abstract, abstract
21
22 extension, supplemental abstract or final title report within the
22
23 following time periods shall constitute unnecessary delay, unless
23
24
24
Req. No. 728 Page 4
 1 the Board has previously determined the existence of extenuating
1
2 circumstances:
2
3 1. For furnishing new abstracts:
3
4 a. unplatted: twenty (20) business days, and
4
5 b. platted: fifteen (15) business days; and
5
6 2. For furnishing an abstract extension, supplemental abstract
6
7 or final title report:
7
8 a. unplatted: seventeen (17) business days, and
8
9 b. platted: twelve (12) business days.
9
10 C. All licensed abstractors and certificate of authority
10
11 holders, whose business is hereby declared to stand upon a like
11
12 footing with that of common carriers, who shall refuse to do so,
12
13 upon receipt of a valid order for the abstract, abstract extension,
13
14 supplemental abstract or final title report, shall be subject to the
14
15 following:
15
16 1. A civil penalty of not less than One Hundred Dollars
16
17 ($100.00) Five Hundred Dollars ($500.00) nor more than One Thousand
17
18 Dollars ($1,000.00) Two Thousand Dollars ($2,000.00) for each
18
19 occurrence;
19
20 2. Liability in any action for damages, loss or injury which
20
21 any person may suffer or incur by reason of failure to furnish such
21
22 abstract, abstract extension, supplemental abstract or final title
22
23 report pursuant to the provisions of this section. This penalty may
23
24
24
Req. No. 728 Page 5
 1 be enforced in the same manner in which civil judgments may be
1
2 enforced; and
2
3 3. Any administrative penalties and fines enforced by the
3
4 Oklahoma Abstractors Board.
4
5 D. The provisions of this section shall not apply to orders for
5
6 abstracts on oil, gas, and other minerals.
6
7 E. In the event a holder of a certificate of authority is
7
8 unable to comply with the requirements of this section due to
8
9 extenuating circumstances, the holder of the certificate shall
9
10 notify the Board within five (5) business days of the receipt of
10
11 orders that cannot be furnished within the time specified in this
11
12 section. The Board shall respond to the holder within three (3)
12
13 business days to resolve the delay and establish alternatives for
13
14 the timely delivery of abstracts.
14
15 F. For the purposes of this section, “extenuating
15
16 circumstances” include but are not limited to a catastrophic event
16
17 such as fire, tornado, pandemic, death, or the receipt of a large
17
18 multiple tract order such as an energy related project.
18
19 SECTION 3. AMENDATORY 1 O.S. 2021, Section 35, is
19
20 amended to read as follows:
20
21 Section 35. A. The Oklahoma Abstractors Board shall censure,
21
22 suspend, revoke, continue, renew, or refuse to issue any certificate
22
23 of authority or permit issued or applied for pursuant to the
23
24
24
Req. No. 728 Page 6
 1 provisions of the Oklahoma Abstractors Act, if, after a hearing, the
1
2 Board finds any one or more of the following conditions:
2
3 1. Any untrue statement in the application for a certificate of
3
4 authority or permit;
4
5 2. The violation of or noncompliance with any provision of the
5
6 Oklahoma Abstractors Act or rule, regulation, or order of the Board;
6
7 3. The obtaining of or attempt to obtain a certificate of
7
8 authority or permit through fraud or misrepresentation;
8
9 4. Conviction of or plea of guilty or nolo contendere to a
9
10 felony in this state, another state, or a federal court or of a
10
11 misdemeanor involving moral turpitude;
11
12 5. Conspiracy involving the certificate holder or the
12
13 certificate holder’s agents to obtain an abstract license for an
13
14 employee, prospective employee, or other person through fraud or
14
15 misrepresentation;
15
16 6. Failure to properly supervise an abstract licensee whose
16
17 license is issued through the certificate holder; or
17
18 7. Failure to provide an abstract, abstract extension,
18
19 supplemental abstract or final title report pursuant to the
19
20 requirements of Section 32 of Title 1 of the Oklahoma Statutes this
20
21 title.
21
22 B. In addition to or in lieu of any censure, denial,
22
23 suspension, or revocation of a certificate or permit, any person,
23
24 firm, corporation, or other entity violating the provisions of the
24
Req. No. 728 Page 7
 1 Oklahoma Abstractors Act shall be subject to a civil penalty of not
1
2 less than One Hundred Dollars ($100.00) Five Hundred Dollars
2
3 ($500.00) nor more than Ten Thousand Dollars ($10,000.00) for each
3
4 occurrence. The fine may be enforced in the same manner in which
4
5 civil judgments may be enforced.
5
6 SECTION 4. AMENDATORY 1 O.S. 2021, Section 36, is
6
7 amended to read as follows:
7
8 Section 36. A. Any person, firm, corporation, or other entity
8
9 holding a valid abstract license or permit, or any abstract licensee
9
10 affiliated with such person, firm, corporation, or other entity,
10
11 shall:
11
12 1. Have free access to the instruments of record affecting real
12
13 property filed in any city, county, or state office;
13
14 2. Be permitted to make such memoranda, notations, or copies of
14
15 such instruments of record;
15
16 3. Occupy reasonable space with equipment for that purpose
16
17 during the business hours of such office;
17
18 4. Make and prepare abstracts; and
18
19 5. Compile, post, copy, and maintain his or her books, records,
19
20 and indexes.
20
21 B. The records in any city, county, or state office shall not
21
22 be taken from the office to which they belong, for any reason,
22
23 except that records may be taken from the office of the district
23
24 court clerk by an abstractor who is doing business within that
24
Req. No. 728 Page 8
 1 county and has an approved bond on file with the county clerk for a
1
2 period of time not to exceed twenty-four (24) hours after first
2
3 giving proper receipt to the appropriate clerk or deputy.
3
4 C. An abstractor shall have the right of access to any
4
5 instrument filed of record in a county office, not later than the
5
6 close of business of the first business day following the day of
6
7 filing. There shall be no fee charged for providing access to the
7
8 instrument.
8
9 D. For purposes of this section, “access” means possession of
9
10 said instrument to mechanically or electronically reproduce it,
10
11 either in the office or out of the office of filing, at the
11
12 discretion of the county officer having custody of the instrument,
12
13 which reproduction shall be completed not later than the close of
13
14 business of the first business day following the day of receipt of
14
15 the document. Provided if the abstractor fails to return the files
15
16 within the twenty-four-hour period, the county officer in his or her
16
17 discretion may refuse to allow the abstractor to remove said files
17
18 at a later date. Any county officer making such refusal shall send
18
19 written notice of such action to the Oklahoma Abstractors Board.
19
20 E. Access to instruments of record shall be for immediate and
20
21 lawful abstracting purposes only. The sale of the instruments of
21
22 record for profit to the public either on the internet or any other
22
23 such forum by any company holding a permit to build an abstract
23
24
24
Req. No. 728 Page 9
 1 plant is prohibited, and a violation of this subsection shall be
1
2 considered a violation of the Oklahoma Abstractors Law.
2
3 F. All certificates of authority or permit holders and abstract
3
4 licensees shall be subject to the same obligation to protect and
4
5 preserve the public records to which they have access as do the
5
6 public officers who have legal custody of such records. Holders of
6
7 certificates of authority or permits and abstract licensees shall be
7
8 subject to the same penalties for a violation of such duty as said
8
9 officers.
9
10 G. Reliance on the county indexes in the preparation of an
10
11 abstract of title shall be prohibited and subject to the penalties
11
12 established in subsection B of Section 35 of this title and shall
12
13 not be a defense of liability for an error or omission in an
13
14 abstract of title.
14
15 SECTION 5. AMENDATORY 1 O.S. 2021, Section 41, is
15
16 amended to read as follows:
16
17 Section 41. A. It shall be unlawful for any abstractor as an
17
18 inducement to obtaining any business to pay, rebate, or deduct any
18
19 portion of or to permit any deduction from a charge made for making,
19
20 extending, or certifying an abstract of title, to:
20
21 1. Any owner, mortgagee, or lessee of the real property covered
21
22 by the abstract of title, or of any right, title, or interest in or
22
23 lien upon the same;
23
24
24
Req. No. 728 Page 10
 1 2. Any principal, broker, agent, or attorney in connection with
1
2 a sale or lease of real property or the making or obtaining of a
2
3 loan thereon in which an abstract of title is required, used, or
3
4 furnished; and
4
5 3. Any spouse, child, employee, ward, officer, director,
5
6 subsidiary, affiliate, parent, relative within the fifth degree,
6
7 personal representative, or partner of any person, firm, or
7
8 corporation included in this section.
8
9 B. All charges for abstracts, abstract extensions, supplemental
9
10 abs