Abstractors tell committee escrow problems are spilling into title work; board cites $1M reserve

Catherine Smith, administrator for the Oklahoma Abstractors Board, told the Administrative Rules Committee that the agency is seeing an increasing share of calls about closing and escrow issues — matters the board does not regulate. “Now I get 60% of the inquiries that come into our office are related to closing issues,” Smith said, adding that escrow is “not regulated on a state basis.”

Smith and board chair Rex Culler said the board’s main enforcement problem remains late or incomplete abstracts, which can delay real‑estate closings. “Most of the time when we get a complaint, it’s because of a failure to prepare the abstract in the timeline set out in the guidelines and the law,” Smith said.

Committee members pressed the board on its roughly $1.0 million cash balance — about three times its annual budget — and whether fees could be reduced. Smith said the balance grew after staff reductions and steady fee revenue and that the board plans to use funds to restore an inspector role and gradually reduce reserves. She noted fees have not changed since the board’s 2008 inception.

Members also asked whether having statewide abstracts reduces title‑theft risk. Chair Rex Culler observed that Oklahoma’s need for long historic abstracts reflects the state’s allotment and federal title history and that abstracts can aid in spotting federal encumbrances that a 30‑year root‑of‑title statute does not remove.

The committee requested contact information and records on complaints and licensing operations; Smith said online licensing was implemented this year and a complaint log is available via open‑records requests. The panel did not take formal action on the item at the hearing.