Iowa Administrative Code › Agency 265 - Iowa Finance Authority › Chapter 9 - Title Guaranty Division › Rule 265-9.7 - Services Offered

Current through Register Vol. 47, No. 3, July 24, 2024
(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 paragraph 9.7(1)
"c"
or
			 authorized under paragraph 9.7(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 that is building or
			 that intends to build a title plant to prepare abstracts for use by the
			 division, 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;
(3) A time line
			 for completion of the title plant; and
(4) A description of the applicant's
			 abstracting experience.
c.
Grandfathered attorney.
A
			 participating attorney who has provided abstracts continuously from November
			 12, 1986, to the date of application to provide abstracts for division
			 purposes, either personally or through persons under the participating
			 attorney's supervision and control, shall be exempt from the requirements to
			 own or lease a title plant. This exemption 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 high quality of
			 certificates throughout the state, rapid service, and a competitive price. Iowa
			 Code section
			 16.91(5)
"b"
allows the division board to waive the up-to-date title
			 plant requirements under certain conditions.
(1) General provisions. The division board
			 shall consider an application for a title plant waiver upon submission by an
			 attorney or an abstractor.
(2)
			 Submission of application. The division shall provide an application form at
			 the office of the division and on the division's Web site. An applicant must
			 submit an application in writing to the attention of the division director at
			 the office of the division.
(3)
			 Content of application. The applicant must provide, at a minimum, the following
			 information:
1. The name, business address,
			 e-mail 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
			 9.7(1)
"d"(5)
and 9.7(1)
"d"
(6)"4";
			 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 division shall publish notice of an
			 application on the division's Web site within 7 calendar days of receipt of a
			 complete application. A copy of the application and supporting documents will
			 be provided to any interested person upon request.
3. 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
			 board 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 board.
4. If a
			 complete application is received at least 90 days prior to the next scheduled
			 division board meeting, the application shall be placed on the agenda for that
			 division board meeting. The division shall receive public comments up to 45
			 calendar days prior to that division board meeting.
(5) Criteria for title plant waiver. Pursuant
			 to Iowa Code section
			 16.91(5)
"b, "
the division board may issue a ruling waiving the title
			 plant requirement set forth in Iowa Code section
			 16.91(5)
"a "(2)
if the board finds the following:
1. The title plant requirement imposes a
			 hardship to the applicant; and
2.
			 The waiver is:
* Clearly in the public interest; or
* Absolutely necessary to ensure availability of certificates
				throughout the state.
3. For
			 purposes of paragraph 9.7(1)
"d,"
"hardship" means
			 deprivation, suffering, adversity, or long-term adverse financial impact in
			 complying with the title plant requirement that is more than minimal when
			 considering all the circumstances.
4. For purposes of paragraph
			 9.7(1)
"d, "
"public interest" means that which is beneficial
			 to the public as a whole, including but not limited to increasing competition
			 among abstractors, encouraging the use of certificates throughout the state,
			 making certificates more competitive than out-of-state title insurance,
			 increasing the division's market share, improving the quality of land titles,
			 and protecting consumers.
(6) Board meeting and ruling.
1. The review of a waiver application is not
			 a contested case proceeding.
2. The
			 division director or designee shall review an application and its supporting
			 documentation. The division director shall present to the division board a
			 proposed written ruling. The division board shall adopt, amend or reject the
			 proposed written ruling. If the proposed written ruling is rejected, the
			 division board shall instruct the division director to prepare an alternative
			 written ruling to be considered at a subsequent division board
			 meeting.
3. The written ruling
			 shall summarize the relevant facts and the basis for granting or denying the
			 waiver. The written ruling may specify the scope and duration of the waiver and
			 any restrictions, conditions, or requirements.
4. The final decision on whether the
			 circumstances justify the granting of a waiver shall be made at the sole
			 discretion of the division board upon consideration of all relevant factors.
			 Relevant factors to be considered include, but are not limited to, the division
			 director's proposed written ruling, the facts and circumstances set out in the
			 application, any history of professional disciplinary action against the
			 applicant, adverse claims made against the applicant, prior waiver withdrawal
			 actions against the participating attorney or participating abstractor, public
			 comments, the professional knowledge and expertise of the board members and
			 division staff, and any other resources available to the entire division board.
			 The division board shall give considerable weight to an applicant's experience
			 abstracting under the supervision of a participating abstractor or
			 participating attorney with whom the applicant has had a close working
			 relationship or with whom the applicant is a partner or associate. The division
			 board shall also give considerable weight to a recommendation from a
			 participating abstractor or participating attorney who supervised the
			 applicant's abstracting for a period of two years or more and who attests in
			 writing or in person before the division board regarding the applicant's
			 ability to abstract. Consideration should be afforded to rulings on prior
			 waiver requests, but the division board shall not be bound by such rulings. The
			 division board may limit a waiver as to county, or transaction type, or
			 both.
5. The written ruling shall
			 be mailed to the applicant within 7 days of its issuance.
6. 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.
(7) Conditions. A waiver is unique to the
			 recipient and is nontransferable. A waiver recipient shall be accountable to
			 the division for abstracts prepared for division purposes. 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
			 recipient annually and may require a renewal, modification or addition to any
			 required assurances. Retention of a waiver is dependent on the applicant's
			 meeting the requirements for a participant in rule
			 265-9.6 (16). If the
			 waiver recipient fails to meet the terms of the recipient's participation
			 agreement, the waiver may be withdrawn by the division board.
(8) Withdrawal of a waiver. A waiver issued
			 by the division board 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
			 board 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 9.6(14).
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.
(9)
			 Public availability. Applications for waivers and written rulings are public
			 records under Iowa Code chapter 22. Some applications or written rulings may
			 contain information that the division is authorized or required to keep
			 confidential. The division may redact confidential information from
			 applications or written rulings prior to public inspection or dissemination.