Bulletin: NE2010002

Date:
April 28, 2010
To:
All Nebraska Issuing Offices
RE:
Nebraska 2010 Legislative Update
Dear Associates:

The second session of the 101st Nebraska Unicameral adjourned sine die on April 14, 2010. Following is a summary of selected Bills that have been signed into law by the Governor and will become effective either immediately, if passed with an emergency clause; otherwise, 3 calendar months following the date of adjournment.

The full text of each Bill, related documentation, and legislative history for these and all other Bills can be accessed through the Nebraska Unicameral website at the following link:

http://www.nebraskalegislature.gov/bills/  

1. MORTGAGE FORECLOSURE SALES; POSTPONEMENT: A recent amendment to the Trust Deeds Act permits a Trustee who is conducting a nonjudicial sale to postpone the sale for up to 45 days after the announced date of sale, without providing further notice. Legislative Bill 732 (LB 732) harmonized this provision with the mortgage foreclosure statutes by permitting the sheriff or a master commissioner to postpone in similar fashion a sale conducted pursuant to a judicial foreclosure.

LB 732 will become effective 3 calendar months following the April 14, 2010 adjournment date.

2. HOMEOWNERS ASSOCIATION LIENS: LB 736 provides a statutory basis for homeowners association liens for unpaid fines and assessments, and requires recording of a notice of lien in the real estate records. The lien is afforded priority over all other liens and encumbrances against the real estate EXCEPT:

  • those recorded before the Declaration creating the Association;

  • a first mortgage or deed of trust recorded before the assessment becomes delinquent;

  • liens for real estate taxes and assessments

The legislation also creates a 3-year statute of limitations that begins to run when the full amount of any assessment becomes due. A homeowners association is required to provide to a member, within 10 business days following a written request, a statement setting forth the amount of unpaid assessments against the real estate.

This new statute clears up uncertainty that has cropped up with regard to the relative priority of homeowners association liens and mortgages and/or deeds of trust, and enhances the ability to determine what, if any assessments remain unpaid and/or delinquent at the time of a real estate closing.

LB 736 was passed with an emergency clause and signed by the Governor on March 3, 2010 and is, therefore, effective as of that date.

3. TRUST DEEDS; SUBSTITUTION OF TRUSTEE: Pursuant to LB 738, notice to the trustee being replaced is no longer required, and any Substitution of Trustee recorded prior to the effective date of the Bill, but without notice to the replaced trustee, is not deemed to be defective.

LB 738 became effective on March 3, 2010

4. SECRETARY OF STATE; ELECTRONIC FILING: LB 791 grants the Secretary of State authority to provide for electronic transmission and filing of documents delivered for filing under statutes governing corporations, limited partnerships, limited liability corporations, non-profit corporations and other entities.

The effective date of LB 791 will be 3 calendar months following the April 14 date of adjournment.

5. MOBILE HOMES; CERTIFICATES OF TITLE: LB 933 comes as a relief to any title agent who has struggled with current law that governs affixation of mobile/manufactured homes to real estate as it is affected by the existence or nonexistence of a certificate of title. The Bill permits an application for a certificate of title for a mobile/manufactured home to be accompanied by various types of documents listed in the Bill. If none of these types of documents can be produced by the owner, then the owner may submit "such evidence as he or she may have," and the Department of Motor Vehicles may issue a certificate of title or authorize such issue "if it finds the evidence sufficient." Also acceptable will be assessment records from the county assessor and an affidavit of the owner confirming ownership.

It is anticipated that LB 933, which will become effective 3 calendar months from the April 14 adjournment, will greatly simplify the tasks involved in insuring and closing transactions involving mobile/manufactured homes.

6. ABSTRACTERS: LB 1051 changes the period for renewal of certificates of authority and certificates of registration from one to two years, and doubles the now-biennial renewal fees accordingly.

This Bill became effective at the time of its April 1, 2010 approval by the Governor.

This Legislative Update is provided for the purpose of sharing information regarding recent legislative developments that may affect title industry practices and processes, and is not intended to be a comprehensive survey of all legislation that might or could affect or have an impact on the title industry. Public websites, such as the website provided above, contain easily accessible information concerning current and past legislation.

If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.  

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None