N.D. Admin. Code Title 2 — Abstracters' Board of Examiners

Article 2-01 General Administration

Chapter 2-01-01 Organization of Board

N.D. Admin. Code 2-01-01-01 Organization of abstracters' board of examiners

1.History. The 1925 legislative assembly enacted abstracters' examiners legislation, codified as North Dakota Century Code chapter 43-01. This chapter requires the governor to appoint a state abstracters' board of examiners. The board, generally speaking, stands between the abstracter and the public. It is the responsibility of the board to protect the public against poorly trained and irresponsible abstracters.

2.Board membership. The board consists of three members appointed by the governor for a term of six years, with the terms of office so arranged that one term expires on March thirty-first of every odd-numbered year. One member of the board must be an abstracter. Each member of the board qualifies by taking the oath required by civil officers and holds office until a successor is appointed and qualified. Any vacancy on the board is filled by appointment by the governor for the unexpired term. At the first meeting of the board subsequent to the thirty-first day of March in each odd-numbered year, the members of the board elect a president from board membership and a secretary-treasurer.

3.Secretary-treasurer. The secretary-treasurer is not a member of the board but is a practical abstracter engaged in the business of making abstracts of title to real estate.

4.Inquiries. Inquiries regarding the board may be addressed to the secretary-treasurer:

Mr. Dean A. Rindy Secretary-Treasurer Abstracters' Board of Examiners P.O. Box 2105 Fargo, ND 58107-2105 dean@kennellylaw.com

History

• History: Amended effective December 1, 1981; September 1, 1995; July 1, 2013.
• General Authority: NDCC 28-32-02.1
• Law Implemented: NDCC 28-32-02.1

Article 2-02 Continuing Education

Chapter 2-02-01 Continuing Education

N.D. Admin. Code 2-02-01-01 Continuing education requirements - Reporting periods

Beginning on July 1, 1995, each abstracter who is a holder of a certificate of registration under North Dakota Century Code chapter 43-01 shall complete not less than eighteen hours of approved continuing education during each three-year period that the abstracter is a holder of a certificate of registration in this state. Continuing education hours will not accumulate beyond each three-year period.

The reporting period for abstracters holding a certificate of registration in the state prior to July 1, 1995, begins on July 1, 1995, and will conclude on June 30, 1998. Subsequent reporting periods will conclude on June thirtieth every three years thereafter. The reporting periods for abstracters who received an initial certificate of registration between July 1, 1995, and July 1, 2007, will commence on July first succeeding the date the abstracter initially secures a certificate of registration to practice in this state and concludes on June thirtieth three years later. Subsequent reporting periods for these abstracters will conclude on June thirtieth every three years thereafter. Credits for continuing education hours acquired at the North Dakota land title association school after January 1, 1995, and prior to July 1, 1995, will be recognized.

The reporting period for abstracters who initially receive a certificate of registration after July 1, 2007, begins on July 1, 2007, and will conclude on June 30, 2010. Subsequent reporting periods for these abstracters will conclude on June thirtieth every three years thereafter. New abstracters shall have the same reporting dates as existing abstracters, but the required total of continuing education hours for their initial reporting period shall be prorated based on the number of years to the next reporting date.

History

• History: Effective May 1, 1995; amended effective April 1, 2006.

N.D. Admin. Code 2-02-01-02 Reporting

Each abstracter shall report to the secretary of the board all schools, seminars, and training sessions attended and all correspondence courses taken relating to the title industry at the time the abstracter applies for renewal of the abstracter's certificate of registration. The report must include the date, where the sessions were held, and the hours attended. Failure to complete the required hours results in nonrenewal of the certificate of registration at the discretion of the board.

N.D. Admin. Code 2-02-01-03 Continuing education hours approval procedure

The board shall determine what constitutes an approved course or event. It may issue and publish advance guidelines or evaluate courses and supporting information as submitted for approval. It may approve courses or events after they have been presented or for fewer credit hours than requested.

Any abstracter desiring continuing education credits for attendance at a course, session, or other event must request board approval of the event, with the exception that credit will be given for attending all North Dakota land title association and American land title association events, including conventions, seminars, or midwinter conventions. Seminars sponsored by the North Dakota bar association and North Dakota board of realtors may be granted points by the board upon examination of the material being offered. A minimum of four hours of credit must be earned by attendance at North Dakota land title association-sponsored schools, seminars, or conventions.

N.D. Admin. Code 2-02-01-04 Computation of hours

Credit hours will be awarded on the basis of one hour for each fifty minutes actually spent in the attendance at a course or event approved by the board. Credit hours will be rounded to the nearest quarter hour.

History

• History: Effective May 1, 1995; amended effective April 1, 2006.

N.D. Admin. Code 2-02-01-05 Waiver of continuing education requirements

Waiver of continuing education requirements will be granted to a holder of a certificate of registration not actively engaged in the title business. If the abstracter becomes active again, the abstracter shall comply with the educational requirements established by this chapter. The reporting period for the abstracter commences on July first succeeding the date the abstracter becomes reactive and concludes on June thirtieth three years later. Subsequent reporting periods will conclude on June thirtieth every three years thereafter.

Article 2-03 Practice Standards

Chapter 2-03-01 Timeliness of Service

N.D. Admin. Code 2-03-01-01 Logbook

Every abstract office shall maintain a logbook of requested abstract work. The logbook must document the customer's name, the date the request for work is received, the promised or expected completion date, the actual completion date, and a remarks column. Except as otherwise agreed by the customer, the expected completion date will be three weeks or less after receipt of the work order. The abstracter shall note any extenuating circumstances under section 2-03-01-03, and shall include an explanation if work is not completed within three weeks. The board or the board's representative may examine the logbook at any time, either in person or by requiring the abstracter to photocopy pages from the book and mail them to the board or the board's representative or by requiring the abstracter to fax pages from the logbook to a designated facsimile machine within a specified time period.

N.D. Admin. Code 2-03-01-02 Timeliness of service

Under normal circumstances, the abstracter will complete each requested abstract work order within a presumed period of three weeks or less from receipt of the requested abstract work order.

N.D. Admin. Code 2-03-01-03 Exceptions to presumed timeliness standard

The following are exceptions from the standard presumed turnaround time of three weeks or less:

1.The customer and abstract company have mutually agreed upon a different time limit, which must be documented in the logbook.

2.Circumstances other than the customer's consent which may prevent an abstract company from completing a job request within three weeks include:

a.The extended absence of a key employee or employees due to illness, death in the employee's immediate family, deployment by any branch of the armed forces, jury duty, or a reasonable unavoidable absence caused by circumstances beyond the employee's control.

b.The abstracter is delayed by waiting for information from third parties or the customer which prevent the abstracter from completing the work.

c.The abstract job is too voluminous to be completed within a three-week time period, in which case, the abstracter shall notify the customer and attempt to mutually agree upon a specific date.

d.Work may be delayed until the requesting customer's previous invoices have been paid.

3.If requested abstract work is received by means other than personal delivery, and if the abstract company determines the job cannot be completed within three weeks of receipt, or within the time limits stated in correspondence from the customer, then the abstract company must contact the customer and negotiate a reasonable completion date, which must be documented in the logbook.

N.D. Admin. Code 2-03-01-04 Practice parameters

In addition to any other disciplinary measure available to the board, if the board determines there are consistent problems with tardiness in completing abstract work under normal circumstances, the board may require the abstract company to hire and to train additional employees at the company's expense.

N.D. Admin. Code 2-03-01-05 Work product requirements

As part of the duty to provide an abstract on request:

1.Abstracters and abstract companies may not refuse to provide an industry acceptable alternative abstract product, such as stubbing separate parcels or providing a partial abstract, if requested in writing by a customer and if the alternative is not adverse to provisions guiding such products or the usage thereof under law.

2.Abstracters and abstract companies may not refuse to exclude from abstracts of title, at the customer's written request, recorded documents such as zoning ordinances, mineral instruments, or other documents under North Dakota Century Code section 43-01-15.1.

History

• General Authority: NDCC 43-01-05, 43-01-16
• Law Implemented: NDCC 43-01-15.1, 43-01-16

Chapter 2-03-02 Ethics

N.D. Admin. Code 2-03-02-01 Practicing law

Abstracters are well-versed in land title law and may find customers seeking to rely upon the abstracter's advice in legal matters. Abstracters are not attorneys by virtue of their certificate of registration or authority from the board. Abstracters may provide professional advice within the scope of practice as an abstracter, but they may not provide title examination nor shall abstracters create legal documents for customers. All these acts may be deemed to be practicing law, and may not be performed by an abstracter unless the abstracter is admitted to practice law by the North Dakota supreme court.

History

• General Authority: NDCC 43-01-05, 43-01-16

N.D. Admin. Code 2-03-02-02 Confidentiality

Abstracters shall practice confidentiality in all facets of their work in order to protect their customers' privacy.

History

• General Authority: NDCC 43-01-05, 43-01-16

N.D. Admin. Code 2-03-02-03 Public duty

Abstracters must at all times conscientiously perform their duties to protect the legal rights and expectations of their customers and the community, they must provide the best possible abstract products and services, and they shall at all times maintain honesty in providing their services. Ready transferability of land ownership or interests result from accuracy and perfection of titles and therefore abstacters shall issue abstracts of title only after a complete, thorough search founded on adequate records and they shall conduct their business so that the needs of their customers and the community are given paramount importance.

History

• General Authority: NDCC 43-01-05

N.D. Admin. Code 2-03-02-04 Abstracters serve the interests of real estate owners, purchasers, and lenders

1.Abstracters shall facilitate transactions involving title by eliminating delays and unnecessary exceptions and making their services available in a manner which will encourage transferability of title. Abstracters and their employees may not engage in any unfair or deceptive acts or practices and shall conduct their business so as to promote the public interest and the continued integrity and stability of the abstract profession.

2.Abstract companies, abstracters, and abstract company employees must be courteous and prompt when communicating with their customers regarding timelines, abstract products, and other issues in order to avoid misunderstandings and prevent hardship for the customers.

3.Abstracters serve the public by assisting with other people's business transactions. This duty requires trust and confidence in the abstract profession. Abstract companies, abstracters, and abstract company employees may not abuse their position by wrongfully interfering with transactions between their customers and other people. Wrongful interference includes intentionally usurping a customer's sales for other services, such as title insurance, or any intentional act that creates, supports, or promotes an unlawful interference with business, except that actual damages need not be proven.

History

• General Authority: NDCC 43-01-05

Chapter 2-03-03 Billing

N.D. Admin. Code 2-03-03-01 Billing

An abstracter may charge no more than is allowed under North Dakota Century Code section

N.D. Admin. Code 43-01-18 The following rules guide charges under the law:

1.Charges are allowed for searching different names, but a separate charge may not be made for the same or substantially the same name. A name with or without a middle initial is substantially the same name, but names with substantial differences, such as the suffixes jr. or sr., are different names. A married woman who uses the prefix mrs. followed by her husband's given name and surname creates a different name for searching than the woman's given name and her married surname. Also, a separate search charge may be made if a person's name has changed for any reason, such as marriage (including name combinations or hyphenations).

2.It is presumptively not overcharging to search all names on the title within the last forty years for tax and judgment liens, if relevant to the time period being searched.

3.Recording practices differ across the state. When billing, an abstracter shall charge based on the actual recording practice in the county.

a.Some counties will record documents as miscellaneous instruments and some counties will record the same documents as deeds or mortgages. Abstracters may charge by the actual recording.

b.Any document that was recorded as a single document may only be charged as a single instrument without regard to the number of attachments, letters, or riders. Conversely, if a document was recorded separately, it may be charged as a separate instrument even if it obviously relates to an additional instrument.

4.Charges for miscellaneous documents are based on the number of words in the document as abstracted and may not be based on the number of words in the document itself. Photocopies or verbatim documents may only be charged as a single entry.

5.Judgments, taxes, and tax liens are shown on the certification and are included within the certification fee and the name search charge. An additional charge is not allowed if a separate page is required for judgments and tax liens shown as attachments.

6.Abstracters may pass on to their customers the fees and costs that are charged to them for searches, recording fees, postage, etc.

History

• History: Effective April 1, 2006.
• General Authority: NDCC 43-01-05, 43-01-16
• Law Implemented: NDCC 43-01-15, 43-01-16, 43-01-18