The Colorado Division of Insurance has recently finalized rules under Regulation 3-5-1 that will affect the issuance of O&E reports and TBD commitments from title companies.  Effective May 1, title companies will no longer be able to provide these documents for free.   

Title companies will be required to file their charges for O&Es and TBDs with the Division to ensure that the charges accurately reflect the cost of production.  Additionally, the Division will allow the fees to be applied to the final costs of the transaction when they result in title work and a closing with the title company issuing the reports.

When the new changes were proposed, CAR reiterated the value the documents have in providing a public service which help consumers understand and avoid title problems at the outset and enables the proper structuring of transactions.  CAR also submitted multiple comments and participated in a public rulemaking hearing to express concern over the requirement to charge for the documents; however, we are pleased that the Division has taken steps to ensure that the charges reflect only the cost of production and will allow them to be applied to the final cost of the transaction.

There are also new rules regarding classes that title companies may provide and when they must charge for those classes. 

A full copy of the new regulations can be found here.