(1) For purposes of this section:
(a) Mineral estate means a mineral interest in real property.
(b) Severed means that the surface owner does not own all or any part of the mineral estate.
(c) Surface estate means an interest in real property that does not include the full mineral estate as shown by recorded documents that impart constructive notice in the office of the clerk and recorder of the county in which the real property is situated.
(d) Surface owner means the owner of the surface estate and any purchaser with rights under a contract to purchase all or part of the surface estate.
(2) A title insurance agent or title insurance company shall provide, as part of each title commitment for the issuance of an owner's title insurance policy, the following written statement when it is determined that a mineral estate has been severed from the surface estate:
(a) That there is recorded evidence that a mineral estate has been severed, leased, or otherwise conveyed from the surface estate and that there is a substantial likelihood that a third party holds some or all interest in oil, gas, other minerals, or geothermal energy in the property; and
(b) That such mineral estate may include the right to enter and use the property without the surface owner's permission.
(3) In determining compliance with this section, a title insurance agent or title insurance company may rely on recorded documents that impart constructive notice in the office of the clerk and recorder of the county in which the real property is situated and shall not be liable for any errors or omissions in such records.
(4) A title insurance company or title insurance agent may rely on any document purporting to sever mineral interests to act as notice of such severance when such document is recorded in the office of the county clerk and recorder in the county in which the real property is situated.
(5) A title insurance agent or title insurance company shall be deemed to be in compliance with this section when it relies on any document purporting to sever mineral interests or to act as notice of such severance when such document is recorded in the office of the county clerk and recorder of the county in which the real property is situated. No title insurance agent or title insurance company shall be liable for obligations above, or for an amount in excess of, those stated in the owner's policy of title insurance issued pursuant to the commitment for failure to comply with the provision of subsection (2) of this section.
Source: L. 2001: Entire section added, p. 485, � 1, effective July 1.
10-11-124. Affiliated business arrangements - rules - investigative information shared with division of real estate. (1) (a) An affiliated business arrangement is permitted where the person referring business to the affiliated business arrangement receives payment only in the form of a return on an investment and where it does not violate the provisions of section 10-11-108 (1).
(b) A title insurance company or a title insurance agent making a referral as part of an affiliated business arrangement shall disclose the affiliation in accordance with the federal Real Estate Settlement Procedures Act of 1974, as amended, 12 U.S.C. sec. 2601 et seq.
(c) Neither a title insurance company nor a title insurance agent shall require the use of an affiliated business arrangement or a particular settlement producer as a condition of obtaining title insurance services from the company or agent. For the purposes of this paragraph (c), require the use shall have the same meaning as required use in 12 CFR 1024.2.
(2) The commissioner may promulgate rules concerning the creation and conduct of an affiliated business arrangement, including, but not limited to, rules defining what constitutes a sham affiliated business arrangement. Nothing in this subsection (2) shall be construed to increase a fee or create a licensure program for affiliated business arrangements. The commissioner shall adopt the rules, policies, or guidelines issued by the United States department of housing and urban development concerning the federal Real Estate Settlement Procedures Act of 1974, as amended, 12 U.S.C. sec. 2601 et seq. Rules adopted by the commissioner shall be at least as stringent as the federal rules and shall ensure that consumers are adequately informed about affiliated business arrangements. The commissioner shall consult with the real estate commission pursuant to section 12-10-218 (5) concerning rules the real estate commission may promulgate concerning affiliated business arrangements. Neither the rules promulgated by the commissioner nor the real estate commission may create a conflicting regulatory burden on an affiliated business arrangement.
(3) The division may share information gathered during an investigation of an affiliated business arrangement with the division of real estate.
Source: L. 2006: Entire section added, p. 266, � 2, effective July 1. L. 2007: (1)(b) and (2) amended, p. 2019, � 10, effective June 1. L. 2019: (2) amended, (HB 19-1172), ch. 136, p. 1652, � 38, effective October 1. L. 2020: (1)(c) amended, (HB 20-1402), ch. 216, p. 1043, � 15, effective June 30.