Iowa Code r. 265-9.5 - Participants
(1)
General provisions. An applicant shall submit a participant
application and the first year's annual fee and shall sign a participation
agreement in order to be authorized to provide one or more services on behalf
of the division.
(2)
Participant application. Applications for participation and
renewal are available on the division's website. An applicant shall submit an
application to provide one or more services on behalf of the division. If the
applicant is approved as a participant, the participant is required to submit a
renewal application annually.
(3)
Eligibility considerations. To determine whether to approve or
deny a participant application, factors the division may consider include but
are not limited to the following:
a. The needs
of the public and the needs of existing or potential customers of the
applicant.
b. A history of the
operation and management of the applicant's business.
c. The character, fitness, financial
responsibility and experience of the applicant and the applicant's
employees.
d. A credit report or
criminal background check of the applicant or the applicant's
employees.
e. A record of default
in the payment of moneys collected for others by the applicant or the
applicant's employees.
f. A history
of discharge of debts by the applicant or the applicant's employees through
bankruptcy proceedings.
g.
Compliance with the title and settlement best practices adopted by the
division.
h. Other factors as
determined by the division.
(4)
Participation agreement.
The participation agreement sets forth the contractual relationship between the
participant and the division. A new participation agreement is executed
annually and when otherwise required by the division.
(5)
Annual fee. A
participant may be required to pay an annual fee of $75, set pursuant to Iowa
Code section 16.91(4).
(6)
Agent relationship. A
participant is only authorized to act as an agent of the division for the
purposes and in the manner set forth in the participant's participation
agreement, the Iowa Code, these rules, manuals and any other written
instructions given by the division. The authority of a participant to act as an
agent of the division is not exclusive and is subject to the rights of the
authority, the division, and other participants, agents, or representatives of
the division.
(7)
Conflict
of interest. A participant shall not, without prior authorization of
the division, prepare an abstract or issue a title opinion, commitment,
certificate, or closing protection letter for a transaction in which the
participant has a personal or financial interest in the real estate that is the
subject of that transaction.
(8)
Clearance of title objections. All title objections must be
cleared in accordance with applicable division manuals and any other written
instructions given by the division prior to the issuance of a certificate. Any
underwriting determination about which there may be a bona fide difference of
opinion among attorneys, which is not specifically addressed by division
manuals or instructions, shall be approved by the division in
writing.
(9)
Commitment and
certificate coverage limitations. A field issuer shall obtain written
authorization from the division prior to issuing a commitment or certificate
that exceeds the allowable maximum amount of coverage, as determined by the
division. If authorization under this subrule is not obtained through the act
or omission of the field issuer, the field issuer shall be strictly liable to
the division for any loss or damage resulting from issuance of the commitment,
closing protection letter, or certificate.
(10)
Document retention. A
participant shall maintain transaction files in such a manner that information
pertaining to activities of the participant is readily available to the
division while protecting confidential client information. A participant shall
retain files for a period of ten years after the issued date of the certificate
or the issued date of the commitment if a certificate is not issued.
(11)
Training. The division
may require a participant and the participant's staff to participate in
training sessions or continuing education seminars as deemed necessary by the
division to ensure compliance with division requirements and
procedures.
(12)
Compliance. Participants shall comply with the Iowa Code,
these rules, the participation agreement, manuals, and any other written
instructions given by the division. The division may audit the participant,
with or without notice, for verification of compliance. An audit may include
but not be limited to a review of the participant's abstracts, title opinions,
commitment and certificate issuance procedures, a test of title plants and
tract indices, and a review of closing policies and procedures and escrow
account details.
(13)
Revocation. The division may revoke a participant's
authorization to provide services on behalf of the division for reasons,
including but not limited to the following:
a.
Failure to comply with the terms and conditions of the participation
agreement.
b. Failure to submit an
annual renewal application.
c.
Knowingly withholding or misrepresenting material facts relied upon by the
division.
d. Fraud, theft,
dishonesty, or misappropriation of funds or documents.
e. Deterioration of the participant's
financial condition adversely affecting the participant's ability to provide
services on behalf of the division.
f. A finding by the division director of
material noncompliance with the Iowa Code, these rules, manuals, and any other
written instructions given by the division.
g. Other factors as determined by the
division.
Notes
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