Title Guaranty to propose title opinions without abstracts?
Laura McCann/IowaBar
Wednesday January 17, 2007 14:03


----- Message from "White, Matt [IFA]" <Matt.White@iowa.gov> on Thu, 14 Sep 2006 14:56:32 -0600 -----
To:
<realestate@iabar.org>
Subject:
RE: Title Guaranty to propose title opinions without abstracts?

To try to clarify.  First of all, Title Guaranty DOES NOT PROPOSE TO ALLOW TITLE OPINIONS WITHOUT ABSTRACTS.  We have been in discussion with the real estate industry in Council Bluffs for some time.  If I may try to clear the air, please let me do so.  For the last year, my staff and I have been meeting with lenders, attorneys and abstractors in Council Bluffs.  Last week we had a meeting attended by fourteen attorneys and abstractors, representing attorneys with an active real estate practice and the two abstractors that maintain a forty year plant in Council Bluffs. This was not our first meeting.  We have also met personally with almost every lender who does a significant amount of business in Council Bluffs.  I can tell you without question that Title Guaranty is not used in Council Bluffs, because of the requirement of an abstract, at least as defined in our Administrative Code. Under that definition, most real estate transactions would require the creation of a new abstract from scratch at a cost of $800 to $1000.  I expect that the abstractors, lenders and attorneys in Council Bluffs will at some point come forward and ask Title Guaranty to modify the definition of an abstract for real estate in Pottawattamie County.  This is a product, if approved, that would be available in Pottawattamie County, and no where else in the state .  I do not view this as much different then when Title Guaranty introduced the non-purchase product.  As a result, we have begun to win back re-fi business that we had lost.  It is a fact that Title Guaranty just does not do any business in Council Bluffs.  I hope if the attorneys and abstractors in Council Bluffs choose to come forward with a proposal that will get them back in the real estate transaction, and do so in a way that is considerably less expensive than what is offered by out of state title insurance, that those of us in the rest of the state will keep an open mind.  I can’t help but take things a little personally, I am a passionate advocate of the abstract/title opinion system and wish to preserve it.
 
Loyd W. Ogle
Director
Title Guaranty Division


 
We're Moving
 

From: realestate-owner@iabar.org on behalf of Richard Bordwell
Sent: Thu 9/14/2006 1:32 PM
To: realestate@iabar.org
Subject: Title Guaranty to propose title opinions without abstracts?
It looks like Title Guaranty is planning to kill with the Abstract/Title Opinion system in Iowa.
 
Minutes of the May 23 2006 Title Guaranty Board state in part
:
 “Mr. Ogle discussed Pottawattamie County and Council Bluffs…The attorney/abstract system never took hold there as it has in the rest of the state.  The two abstract companies in Pottawattamie County do not do abstract continuations; rather, they do title searches.  Attorneys do very few title opinions.  TGD will not get into that market if it stands on the requirement on a purchase transaction that there needs to be an abstract continuation based off an abstract when those abstracts don’t exist…  It is a growing market, and Mr. Ogle intends for a TGD to aggressively enter that market and garner back that business.  To do so, TGD will need to create some type of mechanism for attorney to issue title opinions base on something different than what is considered a traditional abstract continuation.”  (emphasis added).
 
Is the Iowa Bar going to do anything to stop this?
 
 
 
Richard S. Bordwell
Bordwell Law Office PLC
Attorneys at Law
Washington, Iowa  52353
Voice 319-653-2177   FAX 319-653-4797
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