An Abstract Perception

Some local abstract companies have raised their ire over Superior Abstract & Title Co. of Springdale, which the head of the state licensing board said is using a common form of false advertising in the industry.

Superior, owned by Jody Davis and Mark Courdin, opened for business Nov. 1. It is located at 3291 S. Thompson St., Suite D-101, in Springdale.

Even the name is false advertising, said Mel Nixon, executive director of Arkansas Abstractors Board of Examiners.

“Abstract companies are all required by law to have a complete set of records back to the date of patent on that property that could affect the title to the property,” Nixon said. “[Superior] is calling itself an abstract company, but they don’t have a complete set of records. They haven’t gone to the extent of compiling the records to do the research.”

Arkansas Act 109 of 1969 requires any company producing abstracts for a client to have an abstract licensee from the Arkansas Abstractors Board of Examiners.

“It’s a fairly significant process and a fairly significant exam,” said Mike Pryor, president of the Arkansas Land Title Association and president and CEO of Lender’s Title in Little Rock. “A company and an individual abstractor must pass separate exams.”

Neither Davis or Courdin returned calls from the Northwest Arkansas Business Journal. A receptionist at Superior told us the company was a licensed abstract company. Pryor said he got a similar answer when he called to inquire.

“It comes up time to time,” Pryor said. “You can call yourself an abstract company without preparing one. It’s not really ethical, but there’s no law against it. We just want to make sure the consumer is not being misled by a company that is not under the proper regulatory authority.”

Nixon said Superior is not the only company calling itself an abstract company without the proper licensee. The next step, if taken, would be for her office to report the matter to the Attorney General’s office for a ruling. Depending on the ruling, a company could face a cease-and-desist order.

But, Nixon said, “There probably won’t be anything done. As long as they’re not producing the abstracts, they really aren’t doing anything wrong other than false advertising. But I can see why some companies would be upset.”

Superior told the Business Journal that it charges $50-$75 for document preparation.