Abstracters Act | Abstracters Board of Examiners

(Reprinted from R.R.S. Neb. 1943)

76-501. Repealed. Laws 1985, LB 47, § 32.

76-502. Abstracting; district or county judges ineligible.

No district judge or county judge within this state shall engage in the business of abstracting nor be interested directly or indirectly in any company or corporation which is engaged in the business of abstracting while holding office. Any certification of an abstract of title by a judge in violation of this section shall be void.

Source: Laws 1935, c. 148, § 1, p. 551; C.S.Supp.,1941, § 76-601; R.S.1943, § 76-502; Laws 1972, LB 1032, § 269; Laws 1985, LB 47, § 2.

76-503. Repealed. Laws 1973, LB 517, § 2.

76-504. Abstracting; counties over 5,000 population; county officers ineligible; exception.

No county official or deputy, clerk, or assistant to such official, except the county attorney and deputy county attorney, in counties having a population of over five thousand shall engage in the business of compiling abstracts of title to real estate in the State of Nebraska while holding such office, and any certification of an abstract of title by any such person in violation of this section shall be void.

Any registered abstracter holding any such office on August 30, 1981, shall continue to be eligible to engage in the business of compiling abstracts of title so long as he or she continues to hold such office.

Source: Laws 1933, c. 125, § 1, p. 499; Laws 1935, c. 148, § 1, p. 551; C.S.Supp.,1941, § 76-601; R.S.1943, § 76-504; Laws 1972, LB 1032, § 270; Laws 1981, LB 409, § 6; Laws 1985, LB 47, § 3.

76-505. Violations; penalty.

A violation of section 76-502 or 76-504 shall be a Class III misdemeanor.

Source: Laws 1907, c. 98, § 1, p. 347; Laws 1911, c. 99, § 1, p. 364; R.S.1913, § 6277; C.S.1922, § 5691; C.S.1929, § 76-601; Laws 1933, c. 125, § 1, p. 499; Laws 1935, c. 148, § 1, p. 551; C.S.Supp.,1941, § 76-601; R.S.1943, § 76-505; Laws 1985, LB 47, § 4.

76-506. Repealed. Laws 1985, LB 47, § 32.

76-507. Repealed. Laws 1985, LB 47, § 32.

76-508. Repealed. Laws 1985, LB 47, § 32.

6-509. Transferred to section 76-538.

76-510. Transferred to section 76-537.

76-511. Transferred to section 76-540.

76-512. Transferred to section 76-541.

76-513. Transferred to section 76-549.

76-514. Transferred to section 76-553.

76-515. Transferred to section 76-550.

76-516. Repealed. Laws 1981, LB 545, § 52.

76-517. Repealed. Laws 1985, LB 47, § 32.

76-518. Transferred to section 76-539.

76-519. Transferred to section 76-542.

76-520. Repealed. Laws 1985, LB 47, § 32.

76-521. Transferred to section 76-546.

76-522. Transferred to section 76-545.

76-523. Transferred to section 76-547.

76-524. Transferred to section 76-548.

76-525. Transferred to section 76-555.

76-526. Transferred to section 76-551.

76-527. Transferred to section 76-558.

76-528. Transferred to section 76-554.

76-529. Transferred to section 76-556.

76-530. Transferred to section 76-557.

76-531. Repealed. Laws 1985, LB 47, § 32.

76-532. Transferred to section 76-544.

76-533. Repealed. Laws 1985, LB 47, § 32.

76-534. Repealed. Laws 1985, LB 47, § 32.

76-535. Act, how cited.

Sections 76-535 to 76-558 shall be known and may be cited as the Abstracters Act.

Source: Laws 1985, LB 47, § 5.

Annotations "Preparing written reports of title to real property" constitutes the "business of abstracting" for purposes of the Abstracters Act only when done in exchange for a fee or other valuable consideration. So construed, the Abstracters Act is not unconstitutionally overbroad on its face. State v. Rabourn, 269 Neb. 499, 693 N.W.2d 291 (2005).

76-536. Legislative intent.

It is the intent of the Legislature to safeguard the welfare and property of citizens of this state and to insure that abstracters serving the public meet minimum standards of proficiency and competency.

Source: Laws 1985, LB 47, § 6.

76-537. Terms, defined.

As used in the Abstracters Act, unless the context otherwise requires:

Abstract of title means a compilation in orderly arrangement of the materials and facts of record affecting the title to real property, issued under a certificate certifying to the matters contained in such compilation;
Board means the Abstracters Board of Examiners;
Business of abstracting means the making, compiling, and selling of abstracts of title or any part thereof or preparing written reports of title to real property;
Business entity means a partnership, limited liability company, corporation, or other organizational form developed to conduct business;
Certificate of authority means the authorization to engage in the business of abstracting in a county in the State of Nebraska granted to an individual or business entity;
Certificate of registration means the authorization to prepare abstracts of title to real property in any county within the State of Nebraska which is granted to an individual under section 76-543;
Duplicate certificate of registration means a second or subsequent certificate of registration issued in this state for an abstracter who (a) holds an operative certificate of registration and (b) is employed by more than one holder of a certificate of authority;
Inactive abstracter means an abstracter whose certificate of registration is not affiliated with an individual or business entity engaged in the business of abstracting and holding a certificate of authority;
Professional development means a course of educational instruction, including correspondence courses, designed to maintain and improve the ability of registered abstracters to provide services to the public;
Registered abstracter means an individual, registered under the Abstracters Act, holding an operative certificate of registration who for a fee or other valuable consideration compiles or certifies abstracts of title or any part thereof to real property in any county within this state or who prepares reports of title; and
Report of title means any type of summary of facts of record affecting the title to real property which does not purport to constitute an opinion as to the state of the title and which is prepared by a person other than an attorney licensed to practice law in the State of Nebraska. Report of title does not include a title insurance commitment or policy or information or opinions given by a register of deeds in response to inquiries from the public.

Source: Laws 1965, c. 453, § 2, p. 1436; R.S.1943, (1981), § 76-510; Laws 1985, LB 47, § 7; Laws 1993, LB 121, § 476; Laws 2002, LB 1071, § 1.

76-538. Compliance with act.

Any individual or business entity engaged in the business of abstracting in Nebraska shall comply with the Abstracters Act.

Source: Laws 1965, c. 453, § 1, p. 1436; R.S.1943, (1981), § 76-509; Laws 1985, LB 47, § 8; Laws 1993, LB 121, § 477; Laws 2002, LB 1071, § 2.

76-539. Business of abstracting; requirements.

An individual or business entity shall not engage in the business of abstracting in this state unless a certificate of authority has been issued to such individual or business entity.
Every individual or business entity engaged in the business of abstracting shall be or have in its employ a registered abstracter. Only a registered abstracter may certify abstracts or otherwise attest to the accuracy of abstracts or prepare reports of title. An inactive abstracter shall not, for a fee or other valuable consideration, compile or certify abstracts of title or any part thereof to real property in any county within this state, prepare reports of title, or in any way engage in the business of abstracting.

Source: Laws 1965, c. 453, § 10, p. 1440; Laws 1969, c. 615, § 9, p. 2498; R.S.1943, (1981), § 76-518; Laws 1985, LB 47, § 9; Laws 2002, LB 1071, § 3.

76-540. Abstracters Board of Examiners; membership.

There is hereby created an Abstracters Board of Examiners of five members to be appointed by the Governor to carry out the purposes of and enforce the Abstracters Act. The board shall include three members who shall at all times be active registered abstracters who have engaged in the business of abstracting for at least five years, one member who shall be a lawyer experienced in the area of real estate law, and one member who shall be representative of the public.

No more than two members of the board shall be appointed from the same county, at least one member shall be appointed from a county having as its largest city a city of the first class, and at least one member shall be appointed from a county having as its largest city a city of the second class. No member of the board shall be employed by the same employer as any other member of the board.

Each member of the board shall serve for a term of five years and until a successor is appointed and qualified, except that members of the board currently serving on March 26, 1985, shall continue to serve the terms for which they were appointed. The first attorney member of the board whose term expires after March 26, 1985, shall be succeeded by the representative of the public.

Vacancies created by the death, resignation, or other disability of a board member resulting in the inability to carry out his or her duties shall be filled by appointment by the Governor and such successor shall possess the same qualifications as the member replaced and such member shall, upon qualification, serve the unexpired term of the member whom he or she succeeds. No member of the board shall be appointed to succeed himself or herself.

Source: Laws 1965, c. 453, § 3, p. 1437; Laws 1973, LB 330, § 1; R.S.1943, (1981), § 76-511; Laws 1985, LB 47, § 10.

76-541. Board; officers; powers; seal; rules and regulations; conduct of business.

The board shall organize by election of a chairperson and vice-chairperson. The board shall have the power to compel the attendance of witnesses, and the chairperson and vice-chairperson shall have the power to administer oaths. The board shall employ a director who shall keep a record of all proceedings, transactions, communications, and official acts of the board, be custodian of all records, and perform such other duties as the board may require.

The board shall adopt a seal, which may be either an engraved or ink stamp seal with the words Abstracters Board of Examiners, State of Nebraska, and such other device as the board may desire included, by which it shall authenticate the acts of the board. Copies of all records and papers in the office of the board, certified by the signature of the director and the seal of the board, shall be received in evidence in all cases equally and with like effect as the originals.

The board may adopt and promulgate such rules and regulations as it shall deem necessary for the proper administration of its powers and duties and the carrying out of the Abstracters Act. Such rules and regulations may provide that, except for hearings on the revocation of certificates issued by the board, the business of the board may be conducted while in session as a body or by correspondence. Such correspondence shall be directed to the director to be incorporated into the records of the board.

The action of the majority of the members of the board shall be deemed the action of the board.

Source: Laws 1965, c. 453, § 4, p. 1438; Laws 1971, LB 653, § 8; R.S.1943, (1981), § 76-512; Laws 1985, LB 47, § 11.

76-542. Registration; application; fee; qualifications; rules and regulations.

Any individual desiring to become a registered abstracter shall file an application for registration with the board. Such applicant shall have reached the age of majority, shall not have been convicted of a felony. Each applicant for registration shall take the written examination prescribed by section 76-543.

Such application shall be in a form prepared by the board and shall contain the applicant's social security number and such information as may be necessary to assist the board in determining the qualification of the applicant for registration. Each such application shall be accompanied by (1) an application fee of not less than twenty-five dollars or more than one hundred dollars and (2) an examination fee of not less than twenty-five dollars or more than one hundred dollars. The board shall establish such fees based on the administrative costs of the board.

Upon receipt of such application the board shall notify the applicant by mail whether the application has been accepted. If the application has not been accepted, the examination fee shall be returned to the applicant. If the application has been accepted, the applicant shall be notified of the time and place of the next scheduled examination.

The board shall adopt and promulgate rules and regulations necessary to establish the experience standards and administer the examination required for registered abstracters.

Source: Laws 1965, c. 453, § 11, p. 1440; Laws 1969, c. 615, § 10, p. 2498; Laws 1973, LB 330, § 3; Laws 1981, LB 409, § 8; R.S.1943, (1981), § 76-519; Laws 1985, LB 47, § 12; Laws 1997, LB 752, § 202; Laws 2002, LB 1071, § 4. Laws 2018, LB345, § 1.

76-543. Examination; certificate of registration; issuance; reapplication procedure.

The board shall prescribe a written examination to determine the proficiency of the applicant. If the applicant passes the examination and meets the other requirements of section 76-542, the board shall issue a certificate of registration designating him or her to be a registered abstracter. If the abstracter has more than one place of employment, the abstracter shall obtain a duplicate certificate of registration for each additional place of employment. A certificate shall be prominently displayed at each place of employment of such abstracter. If an applicant fails the examination, he or she may reapply for registration by remitting the examination fee. The board shall give the examination at least twice a year.

Source: Laws 1985, LB 47, § 13; Laws 2002, LB 1071, § 5.

76-544. Professional development requirements; rules and regulations.

Every two years a registered abstracter shall complete and certify to the board that he or she has successfully completed three hours of board-approved professional development credits. The board shall adopt and promulgate rules and regulations necessary for the effective delivery and approval of all programs of professional development required.

Source: Laws 1981, LB 409, § 2; R.S.1943, (1981), § 76-532; Laws 1985, LB 47, § 14; Laws 1990, LB 1153, § 57.

76-545. Business of abstracting; requirements; certificate of authority; authority; fee.

Any individual or business entity desiring to engage in the business of abstracting in this state shall make application to the board for a certificate of authority. Such application shall be in a form prepared by the board and shall contain such information as may be necessary to assist the board in determining whether the applicant has complied with the Abstracters Act. Such application shall be accompanied by an application fee of not less than twenty-five dollars or more than two hundred dollars. The board shall establish such fee based on the administrative costs of the board. The applicant shall furnish proof that such applicant is or has employed a registered abstracter and shall provide the name and address of a resident agent for service of process under the act. When this section has been complied with, the board shall issue a certificate of authority in such form as it may prescribe, attesting to the same, and such certificate shall be prominently displayed in the place of business of the applicant.

Source: Laws 1965, c. 453, § 14, p. 1442; Laws 1969, c. 615, § 11, p. 2499; R.S.1943, (1981), § 76-522; Laws 1985, LB 47, § 15; Laws 2002, LB 1071, § 6; Laws 2010, LB1051, § 1.

76-546. Temporary certificate of registration; when issued; fee; expiration.

The board may, upon application to it by (1) any individual succeeding to the ownership of any abstract business by any means other than by purchase or (2) any individual who, by reason of the incapacity of any registered abstracter owner of any abstract business, is required to assume the operation of such business, grant to such individual, without examination, a temporary certificate of registration. The application shall include the applicant's social security number. The fee for such temporary certificate of registration shall be not less than twenty-five or more than one hundred dollars. The board shall establish such fee based on the administrative costs of the board. Such certificate shall expire six months after its date or upon the expiration of sixty days after the next regularly scheduled examination which could be taken by the applicant under the rules and regulations of the board, whichever period is the longer. The board shall notify such applicant by mail of the time and place of such examination.

Source: Laws 1965, c. 453, § 13, p. 1441; Laws 1981, LB 409, § 9; R.S.1943, (1981), § 76-521; Laws 1985, LB 47, § 16; Laws 1997, LB752, § 203. Laws 2018, LB345, § 2.

76-547. Certificates; term; renewal; requirements; fees.

All certificates of authority issued pursuant to section 76-545 shall expire on April 1 of each even-numbered year irrespective of when issued. Such certificates shall be renewed, as provided in this section, for a two-year period upon payment of a renewal fee of not less than fifty dollars or more than four hundred dollars. The board shall establish such fee based on the administrative costs of the board.
All certificates of registration, including duplicate certificates of registration, issued pursuant to section 76-543 shall expire on April 1 of each even-numbered year irrespective of when issued. Such certificates shall be renewed, as provided in this section, for a two-year period upon payment of a renewal fee of not less than twenty dollars or more than two hundred dollars. The board shall establish such fee based on the administrative costs of the board. The board shall not renew the certificate of registration or duplicate certificate of registration for any registered abstracter who has failed to complete the professional development requirements set forth in section 76-544, unless the registered abstracter has shown good cause why he or she was unable to comply with such requirements. If the board determines that good cause was shown for not completing the professional development requirements, the board shall permit the registered abstracter to make up all outstanding hours of professional development within six months of the renewal of such certificates. If the hours are not completed in six months, such certificates shall be revoked.
Thirty to sixty days prior to the expiration date of the certificates, the board shall cause a notice of expiration and application for renewal, including a statement for the fee for each certificate, to be mailed to each of the holders of such certificates. The notice and application shall be in a form prepared by the board.

Source: Laws 1965, c. 453, § 15, p. 1442; Laws 1973, LB 330, § 4; R.S.1943, (1981), § 76-523; Laws 1985, LB 47, § 17; Laws 2002, LB 1071, § 7; Laws 2005, LB 640, § 1; Laws 2010, LB1051, § 2.

76-548. Certificates; failure to renew; notice; late renewal; fee.

If a holder of a certificate of authority or certificate of registration fails to apply for renewal and to pay the fee provided, the board shall send by registered or certified mail to such holder a notice that the certificate or certificates have expired and are no longer valid authority for such individual or business entity to engage in the business of abstracting. Such notice shall be mailed not more than thirty days following the certificate expiration date. Any holder who fails to apply for renewal or pay the renewal fees prescribed in section 76-547 may file a late renewal application and shall pay, in addition to the renewal fee, ten dollars for each month or fraction thereof that the application is late beginning with April 1, except that such application shall be filed before July 1 of the year of expiration.

Source: Laws 1965, c. 453, § 16, p. 1443; Laws 1973, LB 330, § 5; R.S.1943, (1981), § 76-524; Laws 1985, LB 47, § 18.

76-549. Abstracters Board of Examiners Cash Fund; created; investment; board members and director; compensation.

All fees collected pursuant to the Abstracters Act shall be deposited in the state treasury to be credited to the Abstracters Board of Examiners Cash Fund which is hereby created. All actual and necessary expenses of the board shall be paid from such fund.
No member of the board shall receive a salary. Each member of the board shall receive as compensation for each day or part thereof of actual service while attending meetings or otherwise engaged upon the business of the board fifty dollars and expenses incurred in the performance of official duties. The director shall be paid a salary to be determined by the board.
Transfers may be made from the Abstracters Board of Examiners Cash Fund to the General Fund at the direction of the Legislature. Any money in the Abstracters Board of Examiners Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Source: Laws 1965, c. 453, § 5, p. 1438; Laws 1969, c. 615, § 6, p. 2497; Laws 1971, LB 25, § 1; Laws 1973, LB 330, § 2; Laws 1981, LB 204, § 147; R.S.1943, (1981), § 76-513; Laws 1985, LB 47, § 19; Laws 2009, First Spec. Sess., LB3, § 52.

Cross References Nebraska Capital Expansion Act, see section 72-1269.
Nebraska State Funds Investment Act, see section 72-1260.

76-550. Register and roster of applicants and abstracters.

The board shall keep a register of the name of each applicant for certification, with his or her place of business and such other information as may be deemed appropriate, including a notation of the action taken by the board thereon, the date upon which the certificate of registration or certificate of authority is issued, and the date of renewal of such certificates. The board shall maintain other records, registers, and files as may be necessary for the proper administration of its duties pursuant to the Abstracters Act. A roster showing the names and places of business of abstracters holding an operative certificate of registration shall be prepared by the director and maintained and updated at least annually on the board's web site in a printable format.

Source: Laws 1965, c. 453, § 7, p. 1439; Laws 1981, LB 409, § 7; R.S.1943, (1981), § 76-515; Laws 1985, LB 47, § 20; Laws 2010, LB1051, § 3; Laws 2015, LB269, § 1.
Effective Date: August 30, 2015

76-551. Disciplinary actions; grounds; unfair practices.

The board shall have the power (1) to revoke a certificate of registration or certificate of authority, (2) to suspend a certificate of registration or certificate of authority for a specific period not to exceed a year, (3) to censure a registered abstracter or holder of a certificate of authority, and (4) to issue a letter of reprimand to a registered abstracter or holder of a certificate of authority.

Such disciplinary actions may be invoked after a hearing as provided in section 76-552 for a violation of the Abstracters Act, including unfair practices, upon the conviction of the holder of a certificate of a felony, or if the board finds a holder to be guilty of habitual carelessness or of fraudulent practices in the conduct of the business of abstracting.

Unfair practices which are a violation of the Abstracters Act shall include:

Failure to disclose an agency relationship to or interest in any title insurance business, law firm, real estate or insurance business, or any other business or enterprise to a client in the event that the holder of the certificate of registration or the holder of the certificate of authority would receive a fee directly or indirectly from such a relationship or interest during a transaction involving real estate in which the holder is retained to provide abstracting services for such client; and
Paying or allowing a rebate of fees for abstracting services, which unfair practice specifically includes rendering a statement or bill to be passed on to third parties which does not reflect the true amount charged for such services or charging an amount from which a rebate is to be paid.

The board shall also have the power after a hearing as provided in section 76-552 to revoke or suspend a certificate of authority for failure to have employed a registered abstracter or for otherwise violating the Abstracters Act.

Source: Laws 1965, c. 453, § 18, p. 1443; Laws 1969, c. 615, § 12, p. 2499; Laws 1976, LB 310, § 1; R.S.1943, (1981), § 76-526; Laws 1985, LB 47, § 21.

76-552. Disciplinary actions; procedure; appeal.

A verified complaint may be filed with the board charging a registered abstracter or a holder of a certificate of authority with a violation of the Abstracters Act. The board on its own motion may also file such a complaint. If a complaint is filed, the board shall immediately notify the abstracter or holder of such certificate of the complaint. The notice shall be in writing and be sent by registered or certified mail, return receipt requested. The notice shall contain a statement of the charges and a copy of the complaint. The notice shall state the time and place of the hearing which shall be not less than twenty nor more than forty days from the date of service of such complaint. The abstracter or holder of such certificate shall be entitled to counsel at any hearing. The board shall cause a transcript of any testimony taken to be made by a reporter or stenographer.

The decision of the board may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.

Source: Laws 1985, LB 47, § 22; Laws 1988, LB 352, § 147.

Cross References
Administrative Procedure Act, see section 84-920.

76-553. Attorney General; representation of board.

The Attorney General shall render to the Abstracters Board of Examiners opinions on all questions of law relating to the interpretation of the Abstracters Act or arising in its administration and shall act as attorney for the board in all actions and proceedings brought by or against it pursuant to the Abstracters Act.

Source: Laws 1965, c. 453, § 6, p. 1439; Laws 1967, c. 481, § 1, p. 1492; Laws 1969, c. 615, § 7, p. 2497; R.S.1943, (1981), § 76-514; Laws 1985, LB 47, § 23.

76-554. Clerical assistants; not subject to act.

Nothing in the Abstracters Act shall be construed as prohibiting any individual or business entity holding a valid certificate of authority from employing such clerical and stenographic assistants as may be necessary in the conduct of its business who are not registered under the Abstracters Act.

Source: Laws 1965, c. 453, § 20, p. 1446; Laws 1973, LB 330, § 6; R.S.1943, (1981), § 76-528; Laws 1985, LB 47, § 24.

76-555. Public records; access; other rights.

Holders of certificates of authority and their employees in the conduct of the business of abstracting shall have access to the public records in any office of any city, county, or the state, shall be permitted to make memoranda, notations, or copies of such records, and shall be permitted to occupy reasonable space with equipment for that purpose, subject to the reasonable regulation of the custodian of such public records and during the business hours of such office, in order to enable such certificate holders to make and prepare abstracts and to compile, post, copy, and maintain their books, records, and indices.

Source: Laws 1965, c. 453, § 17, p. 1443; R.S.1943, (1981), § 76-525; Laws 1985, LB 47, § 25.

76-556. Abstracters; liability.

A registered abstracter shall show each link in the chain of title, and failure to do so shall render him or her liable to any person injured by such omission. In adding extensions to an old abstract, a registered abstracter shall not be deemed to certify to or verify accuracy of entries prior to the first date given in the certificate of extension. When a registered abstracter relies upon the numerical index alone to refer him or her to all entries upon the records affecting the title to property, such reliance shall be at his or her peril. A registered abstracter shall be liable for omission of notice of encumbrance in an abstract.

Source: Laws 1969, c. 615, § 13, p. 2501; R.S.1943, (1981), § 76-529; Laws 1985, LB 47, § 26.

76-557. Abstracts; effect of Title Standards.

In the compilation or examination of an abstract of title to real estate, it shall not be considered negligence for a registered abstracter or an attorney to follow the Title Standards promulgated by the Nebraska State Bar Association.

Source: Laws 1973, LB 517, § 1; R.S.1943, (1981), § 76-530; Laws 1985, LB 47, § 27.

76-558. Violations; penalty; effect.

Any individual or business entity engaged in the business of abstracting in this state without having complied with the Abstracters Act shall be guilty of a Class III misdemeanor. Violation of the Abstracters Act shall in no way be construed to preclude the liability of a holder of a certificate of authority, a registered abstracter, any person holding himself or herself out to be a registered abstracter or a holder of a certificate of authority, or any person illegally engaged in the business of abstracting in the State of Nebraska.

Source: Laws 1965, c. 453, § 19, p. 1445; Laws 1977, LB 39, § 208; R.S.1943, (1981), § 76-527; Laws 1985, LB 47, § 28.