Oklahoma Abstractor (Title Agent) Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Oklahoma Abstractor bond (otherwise referred to as a Title Agent bond or a County Records bond).
At a Glance:
- Lowest Cost: $56 per year or $6 a month
- Bond Amount: Determined on a case-by-case basis (more on this later)
- Who Needs It: All abstractors (otherwise known as title agents) operating in Oklahoma
- Purpose: To protect the public from financial harm if the abstractor/title agent commits fraud or engages in unfair business practices
- Who Regulates Abstractors/Title Agents in Oklahoma: The Oklahoma Abstractors Board
Background
Oklahoma Abstractors Act 1-27 requires all abstractors/title agents operating in the state to obtain a certificate of authority from the Abstractors Board. The Oklahoma Abstractors Board enacted the certificate requirement to ensure that abstractors/title agents do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, abstractors/title agents must purchase and maintain a surety bond to be eligible for licensure.
What Is the Purpose of the Oklahoma Abstractor (Title Agent) Bond?
Oklahoma requires all abstractors/title agents to purchase a surety bond as part of the application process to obtain a certificate of authority. The bond ensures that restitution is available to any damaged party should the abstractor/title agent fail to abide by the regulations outlined in the Oklahoma Abstractor Act. Specifically, the bond protects claimants if the abstractor/title agent commits fraud or engages in unfair business practices. In short, the bond is a type of insurance that protects the public if the abstractor/title agent violates the terms of their license.
How Can an Insurance Agent Obtain an Oklahoma Abstractor (Title Agent) Bond?
BondExchange makes obtaining a Oklahoma Abstractor (Title Agent) bond easy. Simply log in to your account and use our keyword search to find the “title agent” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How Is the Bond Amount Determined?
According to the Oklahoma Abstractor Act 1-27C, the Abstractor (Title Agent) bond amount is based on the population numbers for each county in which the licensee plans to do business in. See the following for further details:
- County population less than 30,000 – $15,000 bond limit required
- County population between 30,000 and 60,000 – $25,000 bond limit required
- County population between 60,000 and 100,000 – $50,000 bond limit required
- County population more than 100,000 – $100,000 bond limit required
Is a Credit Check Required for the Oklahoma Abstractor (Title Agent) Bond?
Surety companies will run a credit check on the abstractor/title agent to determine eligibility and pricing for the Abstractor (Title Agent) bond. Abstractors/title agents with excellent credit and work experience can expect to receive the best rates. Abstractors/title agents with poor credit may be declined by some surety companies or have to pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Oklahoma Abstractor (Title Agent) Bond Cost?
The Oklahoma Abstractor (Title Agent) bond can cost between 0.5% to 5% of the bond amount per year. Monthly subscription options are also available. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below briefly references the approximate bond cost on the $15,000 requirement.
$15,000 Oklahoma Abstractor (Title Agent) Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $56 | $6 |
| 680 – 719 | $68 | $7 |
| 660 – 679 | $105 | $11 |
| 649 – 659 | $150 | $15 |
| 629 – 648 | $225 | $23 |
| 600 – 628 | $375 | $38 |
| 580 – 599 | $525 | $53 |
| 550 – 579 | $600 | $60 |
| 525 – 549 | $750 | $75 |
| 500 – 524 | $900 | $90 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Oklahoma Define “Abstractor”?
To paraphrase Oklahoma Abstractor Act 1-21, an abstractor is a business that compiles and records abstracts of titles issued to specific tracts of land. To put it simply, an abstractor or title agent issues, maintains, and keeps records of property titles for various counties in the state.
Exemptions to this surety bond requirement are abstractors/title agents that are just applying for an “Abstract License”. Those who receive an abstract license may only work for an abstractor/title agent business that already holds a certificate of authority with the Abstractors Board.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Abstractors/Title Agents Become Licensed in Oklahoma?
Abstractors/title agents in Oklahoma must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Board’s Application for Certificate of Authority Checklist for details on the process.
Certificate of Authority Period – Oklahoma abstractors/title agents must renew their certificate of authority with the Abstractors Board 90 days prior to its annual expiration date.
Step 1 – Fulfill Financial Requirements
Abstractors/title agents who are looking to maintain a certificate of authority must purchase a surety bond and an Errors and Omissions policy.
Step 2 – Complete and Submit Application
A completed Application for Certificate of Authority, along with any other required documents and fees, must be submitted to the Oklahoma Abstractors Board.
How Do Abstractors/Title Agents in Oklahoma Renew Their Licenses?
Oklahoma abstractors/title agents must renew their certificate of authority with the Abstractors Board 90 days prior to its annual expiration date. The renewal application can be found here.
What Are the Insurance Requirements for Abstractors/Title Agents in Oklahoma?
According to Oklahoma Abstractors Act 1-27, abstractors/title agents must purchase and maintain an Errors and Omissions policy.
How Do Oklahoma Abstractors/Title Agents File Their Bonds in Oklahoma?
Oklahoma abstractors/title agents should submit their completed bond forms, including the power of attorney when submitting their certificate of authority applications to the Abstractors Board (see the mailing address listed below).
Oklahoma Abstractor Board
421 NW 13th Street, Suite 180
Oklahoma City, OK 7310
The surety bond requires signatures from the surety company, as well as the abstractor/title agent. The surety company should include the following information on the bond form:
- The legal name of the individual buying the bond
- Surety company’s name
- Date the bond is signed
What Can Oklahoma Abstractors/Title Agents Do to Avoid a Claim Against Their Surety Bond?
To avoid claims against their bonds, abstractor/title agents in Oklahoma must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Negligence
- Misrepresentation
- Fraud
What Other Insurance Products Can Agents Offer Abstractors/Title Agents in Oklahoma?
The Oklahoma Abstractor Board requires abstractors/title agents to purchase coverage for an Errors and Omissions policy, which is just another name for professional liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Abstractor/Title Agent Customers in Oklahoma?
Oklahoma conveniently provides a public database to search for active abstractors/title agents in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.