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Regular Session, 2010
HOUSE BILL NO. 807
BY REPRESENTATIVE TIM BURNS
INSURANCE: Requires that a title opinion contain a search of the mortgage or public
records for a specified period of time for federal judgments or if the transaction
being insured is a sale or a mortgage
AN ACT1
To amend and reenact R.S. 22:512(17)(b)(introductory paragraph), (vi)(bb) and (gg), and2
513, relative to title insurance; to require that a title opinion contain a search of the3
mortgage records for a period of twenty years for federal judgments; to require the4
length of the examiner's search for a transaction involving a sale be a minimum5
period of thirty years or longer in order to reach a third-party transfer; to require the6
examiner's search be a minimum of ten years or two links in the chain of title,7
whichever is greater, if only the mortgage is being insured; to require a title8
insurance agent be licensed and domiciled in this state in order to issue title9
insurance policies or transact title insurance business in the state; and to provide for10
related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 22:512(17)(b)(introductory paragraph), (vi)(bb) and (gg), and 51313
are hereby amended and reenacted to read as follows: 14
§512. Definitions15
As used only in this Subpart, the following words are defined as:16
* * *17
(17) "Title insurance business" or "business of title insurance" shall mean:18
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(b) Transacting or proposing to transact by a title insurer or a title insurance1
producer agent any of the following activities when conducted or performed in2
contemplation of or in conjunction with the issuance of a title insurance report or3
policy:4
* * *5
(vi) Examining titles; however, any title insurance report or title insurance6
policy relating to immovable property shall be based upon an examination of title7
which shall be conducted only by attorneys duly licensed and authorized to practice8
law in Louisiana. The examination and resulting opinion, if it furnishes the basis of9
a title insurance report or title insurance policy relating to immovable property, shall10
be reduced to writing by the attorney. The title opinion shall contain the following:11
* * *12
(bb) Complete list of all encumbrances, mortgages, judgments, liens, and13
privileges. This list shall contain the name of secured creditors, date filed, amounts,14
and recordation information. For federal judgments, a search of the mortgage15
records shall be made for a period of twenty years.16
* * *17
(gg) Length of examiner's search and date of earliest recorded instrument18
reviewed by the examiner. If the transaction being insured is a sale, the minimum19
search period shall be thirty years, or longer, if necessary, in order to reach an arms-20
length sale between unrelated, third parties. If only a mortgage is being insured, then21
the search shall be for a minimum of ten years or two links in the chain of title,22
whichever is greater.23
* * *24
§513. Title insurers and producers agents; qualifications25
Only those persons authorized pursuant to this Title as a title insurer or26
producer a title insurance agent who is pursuant to this Title domiciled in this state27
shall be qualified to issue a title insurance policy or report or otherwise transact the28
business of title insurance. Notwithstanding any other law to the contrary, all title29 HLS 10RS-729 ORIGINAL
HB NO. 807
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insurance policies and reports covering any insurable interest in title to immovable1
property located in this state shall be signed by a producer title insurance agent under2
this Subpart licensed and domiciled in this state under this Subpart or by an3
employee of a title insurer issuing the title insurance policies and reports when such4
employee is a producer title insurance agent under this Subpart licensed and5
domiciled in this state under this Subpart.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Tim Burns HB No. 807
Abstract: Provides that a title opinion must contain a search of the mortgage or public
records for a specified period of time for federal judgments and sales or mortgages
that are being insured.
Present law (R.S. 22:512(17)(b)(vi)(bb)) provides that a title opinion must contain a
complete list of all encumbrances, mortgages, judgments, liens, and privileges. Also,
requires the list contain the names of secured creditors, date filed, amounts, and recordation
information.
Proposed law retains present law and adds a provision that requires a title opinion contain
a search of the mortgage records for a period of 20 years for federal judgments.
Present law (R.S. 22:512(17)(b)(vi)(gg)) provides that a title opinion must contain the length
of examiner's search and date of earliest recorded instrument reviewed by the examiner.
Proposed law retains present law and adds a provision that specifies if the transaction is a
sale, the minimum search period must be 30 years, or longer, in order to reach an arms-
length sale between unrelated, third parties. Proposed law further provides if only a
mortgage is being insured, then the search must be for a minimum of 10 years or two links
in the chain of title, whichever is greater.
Present law (R.S. 22:513) provides that only a licensed title insurer or producer is qualified
to issue title insurance or report or transact the business of title insurance. Further, requires
all title insurance policies and reports covering an insurable interest in title to immovable
property located in this state be signed by a producer licensed in this state or by an employee
of a title insurer issuing the title insurance policies and reports when the employee is a
producer licensed in this state.
Proposed law modifies present law by changing "producer" to "title insurance agent". Also,
adds a further condition that a title insurer, agent, or an employee of a title insurer issuing
title insurance policies or reports, who is also a title insurance agent, must be domiciled in
this state.
(Amends R.S. 22:512(17)(b)(intro. para.), (vi)(bb) and (gg), and 513)