Iowa Code r. 265-9.6 - Services offered
(1)
Abstracting. Abstracts utilized for division purposes must be
prepared by a participating abstractor.
a.
Title plant. A participating abstractor shall own and
maintain, or lease and use, a title plant, including tract indices for each
county in which that participating abstractor prepares abstracts for division
purposes, unless exempt under Iowa Code section
16.91(5)
"a"(2) and paragraph 9.6(1)"c" or authorized
under Iowa Code section
16.91(5)
"b" and paragraph 9.6(1)"d." Each of the
tract indices shall be designated to encompass a geographical area of not more
than one block in the case of platted real estate, nor more than one section in
the case of unplatted real estate. The tract indices shall include a reference
to all of the instruments affecting real estate recorded in the office of the
county recorder, and the tract indices shall commence not less than 40 years
prior to the effective date of the abstractor's participation in the title
guaranty program. A government-maintained and -controlled database is not
considered a title plant for division purposes.
b.
Intent to build title
plant. The division may authorize an abstractor who is building or who
intends to build a title plant to prepare abstracts for division purposes, upon
review of the following:
(1) The abstractor's
business plan;
(2) Evidence that a
title plant will be built for a specific county or counties within three years
of authorization;
(3) A timeline
for completion of the title plant; and
(4) A description of the applicant's
abstracting experience.
c.
Exemption. The exemption
available pursuant to Iowa Code section
16.91(5)
"a"(2) is unique to the participating attorney, is
nontransferable, and terminates at such time as the participating attorney
ceases providing abstracts for division purposes or upon the death or
incapacity of the participating attorney.
d.
Title plant waivers. The
division recognizes the 40-year title plant as the preferred method of
providing title evidence for the purpose of issuing commitments and
certificates. The division must weigh the benefits of the traditional title
plant with other alternatives to ensure buyers and lenders a high quality of
certificates throughout the state, rapid service, and a competitive price.
(1) General provisions. The division shall
consider an application for a title plant waiver upon submission by an attorney
or an abstractor.
(2) Submission of
application. The division shall accept applications in the same manner as
provided in subrule 9.5(2).
(3)
Content of application. The applicant must provide, at a minimum, the following
information:
1. The name, business address,
email address, and telephone number of the applicant;
2. The applicant's business plan;
3. The county or counties in which the
applicant intends to abstract;
4. A
description of the applicant's abstracting experience;
5. Samples of abstracts prepared by the
applicant;
6. A history of any
professional disciplinary action against the applicant;
7. Professional references in support of the
applicant;
8. The relevant facts
that the applicant believes would justify a waiver under Iowa Code section
16.91(5)
"b"; and
9. A
signed statement from the applicant attesting to the accuracy of the facts
provided in the application.
(4) Notification and response.
1. The division shall notify the applicant
upon receipt of a complete application.
2. The Iowa State Bar Association and Iowa
Land Title Association shall be provided notice of an application. Provision of
the notice to the identified associations is not a requirement for the division
to consider the application, and failure to inform an interested person of an
application shall not void or otherwise nullify any action or decision of the
division.
(5)
Conditions. A waiver is unique to the recipient and is nontransferable. The
division may limit a waiver as to county, transaction type, duration, or any
other limitation. The division may require a waiver recipient to provide a
guarantee, performance bond, or other form of indemnification as assurance for
abstracts prepared by the waiver recipient on behalf of the division. The
division may review the waiver annually and may require a renewal, modification
or addition to any required assurances. An applicant may only retain a waiver
if the applicant continues to meet the requirements for a participant in rule
265-9.5 (16). If the waiver
recipient fails to meet the terms of the recipient's participation agreement,
the waiver may be withdrawn by the division.
(6) Withdrawal of a waiver. A waiver issued
by the division may be withdrawn or modified if, after public notice and
division board meeting, the division board issues a written ruling finding any
of the following:
1. That the waiver recipient
knowingly withheld or misrepresented material facts relied upon by the division
in granting the waiver; or
2. That
the waiver recipient failed to comply with all conditions contained in the
written ruling; or
3. That the
abstracts prepared by the waiver recipient fail to meet the abstract minimum
standards adopted by the division; or
4. That the division has revoked the waiver
recipient's authorization to provide services on behalf of the division
pursuant to subrule 9.5(13).
The decision of the division board shall be final agency action, and all appeals shall be filed with the Iowa District Court for Polk County.
(2)
Issuing title opinions.
a. All title opinions shall be prepared by
participating attorneys and issued in compliance with division procedures as
specified in manuals and any other written instructions given by the
division.
b. A participating
attorney who is a field issuer may issue a commitment as the preliminary title
opinion and the certificate as the final title opinion.
c. A participating attorney shall be licensed
to practice law in the state of Iowa and shall be in good standing with the
Iowa supreme court at all times while acting as an agent of the
division.
(3)
Issuing commitments and certificates. Pursuant to a
participation agreement with the division, a participant may be authorized to
issue a commitment or certificate on behalf of the division. A participant's
right to issue commitments and certificates is a privilege for the convenience
of the division and may be terminated pursuant to terms of the participation
agreement.
(4)
Issuing
closing protection letters.
a.
Pursuant to a participation agreement with the division, a participant may be
authorized to issue a closing protection letter on behalf of the
division.
b. The division may
require the participating closer to provide an irrevocable letter of direction
to the institution at which each escrow account is established, authorizing the
division to review and audit the institution's records of such account at any
time that the division, in its discretion, deems necessary.
Notes
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