ALTA Invoices Concern REBA Members

2/25/2010

This past September, the American Land Title Association announced that ALTA intended to license the use of its uniform title insurance policy forms. This initiative was developed by independent title agents, members of ALTA, who felt that "new agents were not paying their fair share." ALTA President Mike Pryor, noted that, “A lot of agents think the forms belong to their underwriters, but the truth is, our trade association created the standardized forms and filled a unique role bringing the industry together to eliminate the confusion and chaos of disparate coverage. In turn, this has built a bridge to broader market availability for title insurance."

Many REBA members have asked about the legitimacy of these invoices for licensing fees as well as ALTA dues invoices. “While every member of REBA can make his or her own decision, we believe that these ALTA forms have long ago lost any copyright protection,” said REBA Executive Director Peter Wittenborg. The decision to join ALTA, as with any membership organization—including REBA—should be strictly voluntary.”

The announcement noted that companies that are not members of ALTA will be asked to pay an annual licensing fee of $195.00 to use ALTA forms. Payment of the $195.00 is only a licensing fee and does not include membership in the ALTA.

Recently many Attorney/Agents received a dues renewal notice from ALTA, which included a dues schedule set between $460.00 and $11,500 based on gross revenue, which revenue includes, not only title insurance premium, but fees earned for title examination and settlement services. Membership in the ALTA includes the right to use the ALTA forms.

Individual title insurance companies will not regulate or enforce the use of ALTA forms. Enforcement of this ALTA initiative will be left to the ALTA.