Abstracting
Laws Hurt
Oklahoma
Consumers
Background:
What Is Abstracting?
Abstracting is the process of gathering all documents related to ownership of real property so an attorney can determine there aren’t any competing ownership interests or liens clouding the title.
Why Now?
Oklahoma has some of the most antiquated title and abstracting laws in the country — and it’s not by accident.
Oklahoma abstractors fought to maintain the status
quo for over 114 years. They’ve protected themselves
to the detriment of consumers, businesses, and statewide industry.
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Every real estate transaction in Oklahoma has baked-in costs
not found in other states.
That’s because Oklahoma’s abstracting laws hurt consumers by increasing costs and delaying the time it takes to purchase property.
While other states have updated their regulations to allow for innovation, information sharing, and more streamlined real estate transactions, Oklahoma’s laws protect the interests of a few at the expense of home buyers and entrepreneurs.
Misson
TARC is bringing together a team of legal, legislative, and public relations professionals to modernize Oklahoma’s land and title infrastructure. Through our efforts, we will save Oklahoma families and companies valuable resources.
Oklahoma Title and Abstracting Landscape:
What’s Needed?
Oklahoma’s laws discourage innovation, digitization, and go against free market principles. The politics surrounding abstracting are much more complicated than the facts. It’s a worst-kept secret that Oklahoma’s laws have needed updating for decades. Below are just a few examples of how Title and Abstract Reform for Consumers plans to address this issue and modernize our state’s laws.
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Currently, Oklahoma law requires that abstractors create and maintain a collection of every land record back to statehood, known as a “plant,” in a brick-and-mortar location in each county they wish to do business.
What needs to be done:
Oklahoma should adopt the same innovations 48 other states have already implemented to move to digital records that are accessible anywhere and not just in an expensive physical location. This will allow increased access to the records and more competition within the title industry.
Currently, Oklahomans are required to purchase an expensive abstract of title should they wish to purchase title insurance, which is a requirement of almost every mortgage company. This creates excess costs and unnecessary delays.
What needs to be done:
Oklahoma should repeal the requirement that an abstract going back to statehood be done every time a title insurance policy is sold. Title insurers should be allowed to weigh the risks of loss in their transaction and order abstracts as needed — and as far back as they believe is advisable for confidence in their risk management decision. This will save money in closing costs on each piece of property.
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Increasing free-market competition in the title industry aids the consumer and reduces costs for all Oklahomans.
Organizational Structure
Organizational structure:
This coalition is established as a 501(c)(4), which allows for anonymous contributions and participation from each of its investors. A team of the following professionals will be partnering with Title and Abstract REform for Consumers (TARC) to accomplish the mission.
Executive Director and Team
Lobbyists
Lawyers
Public Affairs Firm
Consultants
Digital and Media Firm
Stakeholder Involvement:
We believe the best way to achieve our desired goals is with a diverse group of stakeholder voices crafting legislative initiatives and a comprehensive plan of action. No one knows the industry better than those who do business in the field each day.
Each corporate investor is a vital part of the development of this strategic plan and will greatly impact the success
of this mission. Therefore, this coalition has several ways for stakeholders to be engaged. Each investor position
will help support the network of people involved in expanding and modernizing this industry. All investment levels
can remain anonymous.