AR Underwriting Summary

Search/Exam

• Minimum Search Requirements Arkansas Law requires a minimum 30 year search. Arkansas Code 23-103-408

Ark. Reg. Rule 87 § 15. With respect to reliance on a prior policy agents should be aware that it is not the prior policy that provides compliance with the regulation, rather it is the underlying evidence of a thirty year search. Thus agents always should be able to produce the thirty year search evidence and not just a prior policy.

Failure to conduct the minimum search may result in the imposition by the Commissioner of penalties contained in Ark. Code Ann § 23-64-216.

• Plant or other search restrictions No but abstractors are licensed
• Additional Requirements for REO Searches N/A
• Foreclosure Checklist N/a
• Special Searches Required (Code, HOA, Utilities)? None
• Survey Requirements
  • Purchase – No for platted residential
  • Refinance – No

UPL

The commitment and final policy must be issued by a Licensed Title Insurance Agency and signed by a Licensed Title Insurance Agent. There is no requirement for attorney involvement in keeping with Act 684 of 2007 and its associated rules.

Vesting

Arkansas recognizes sole ownership and three forms of co-ownership referred to as joint tenancy, tenancy in common and tenancy by the entirety. H&W taking title without otherwise specifying presumed to be Tenancy by Entirety. Dennis v. Dennis , CA 99-626 ___ S.W.3d ___ (AR App. 2000)

Mortgage/Transfer Tax

No Mortgage Tax. the transfer tax is uniform and is $3.30 per thousand.

Spousal Joinder Requirements/Homestead

Spousal Joinder is required. Non-Community Property. Dower & Homestead recognized.

Who May Serve As Trustee On Deed Of Trust

Both Deeds of Trust and Mortgages are used. A trustee can be: A licensed Arkansas Attorney. A Bank or S & L authorized to do business in Arkansas. A duly licensed Trust Company. An agency or authority of the State of Arkansas. ACA § 118-50-102. An underwriter or title agent cannot be a trustee unless they qualify with the above.

Time Limitations

• US Judgment Liens 20 years
• State Court Judgment Liens 10 years
  • Statute of limitations for judgment Arkansas Code § 16-56-114 may be extended by payment on the debt, or attempts to enforce: process, execution or garnishment. See, e.g., Primus Automotive Financial Services vs. Wilburn, 2013 Ark. 258, 428 S.W.3d 480 (2013)
  • Life of judgment lien is only extended by suing out a scire facias using the procedure set forth in Arkansas Code § 16-65-501. See Arkansas Code § 16-65-117. So title is relatively safe after 10 years. Best practice is to check the court file for any filings.
• Federal Tax Liens 10 years (+ 30 days)
• State Tax Liens 10 years
• Estate Tax Lien 10 years
• State Inheritance Tax Liens 20 years
• Mechanics Liens 120 days
• Financing Statements 5 years
• Mortgages
• HOA Liens
• Condominium assessments
• Child Support Liens