Title Licensing

Protecting Property Owners

Title Licensing determines whether resident or non-resident applicants for title agent or agency licensure meet the qualifications set forth in the Oklahoma statutes. This division is responsible for developing the Title Study Manual and issuing renewal licenses. It also reviews the audits received biennially from title insurers on all licensed title agencies.

Title insurance provides coverage against loss by encumbrance, defective titles, invalidity, or adverse claim to title insurance for owners of property or others having any ownership interest therein or liens or encumbrances thereon.

Among the many risks which title insurance protects against are:

• Confusion from similarity of names
• Forged documents
• Signatures of minors or mentally incompetent persons
• Mistakes in recording legal documents
• Undisclosed or missing heirs
• Fraud
• Invalid divorces
• Misrepresentation of marital status
• Unpaid taxes
• Clerical errors in public records
• Wills not probated
• Errors in the examination of title

The two most common types of title insurance policies are the owner’s policy and the loan policy.

• The owner’s policy is a contract of indemnity between an insured owner and a title insurance underwriter. It insures the title to real property subject to the exceptions and exclusions contained in the policy. An owner’s policy will cover the insured as long as the insured and heirs or devisees have an interest in the property. Coverage continues after the insured sells the property if the insured remains liable for warranties of title. However, the owner’s policy is not transferable. When the property is sold, the new owner should obtain a title insurance policy naming him or her as the insured.
  
• The loan policy is a contract of indemnity between an insured lender and the title insurance underwriter. It insures the validity and priority of a lien created in favor of the lender against a specific property subject to the exceptions and exclusions contained in the policy. A loan policy provides protection for the lender as long as the lender has an interest in the property. In the event of a covered claim, the insurance company will pay the balance of the loan up to the face amount of the policy. This type of policy ends when the mortgage is paid off.

The cost of title insurance is based upon the amount of insurance purchased. For the owner’s policy, the amount of insurance would equal the purchase price of the property. On a loan policy, the amount of insurance would equal the amount of the mortgage being insured. Usually, a reduced premium is charged when both policies are issued at the same time. There is a one-time premium for the purchase of title insurance usually paid at closing. There are no recurring premiums to keep the policy in effect. The Oklahoma Insurance Department does not regulate premium rates for title insurance.

Title companies and agents are licensed and regulated by the Oklahoma Insurance Department to issue title insurance policies. You may contact the Title Division to verify the licensure of any company or agent.

Title Division Forms

Frequently Asked Questions