Bulletin: CO2012002

Date:
September 07, 2012
To:
All Colorado Issuing Offices
RE:
2012 Colorado Legislative Session Update

Dear Associates:

The Colorado Legislature has finished its 2012 session.  The following are summaries of some of the bills of interest to the title insurance industry. Unless noted otherwise, the bills are effective on August 8, 2012.

H.B. 1105 Concerning Wind Energy Property Rights.  This bill establishes a wind energy right in Colorado. Unlike mineral rights, this right can not be severed from the surface of the land. To be developed, the wind energy must be developed through the use of wind energy agreements which typically will be an easement, lease or license agreement. This agreement must be recorded. Any agreements entered into before July 1, 2012, must be brought into compliance by September 1, 2012. The bill also requires notice to be recorded when actual generation of electricity commences and when an agreement is terminated. Easements under a wind energy agreement obtained after July 1, 2012, terminate if generation has not commenced within 15 years or if wind generation ceases for a continuous 15 year period.

H.B. 1274 Concerning Notaries Public.  This bill modifies the Secretary of State’s regulation of notaries by allowing electronic filing of applications and renewals. The bill disallows the use of a seal embosser (one can be used until the current notary commission expires), requires a rectangular seal which contains within it the printed legal name of the notary, the words "notary public", the notary's identification number, commission expiration date and the words "State of Colorado".  Notaries who have a seal before the effective date may use it until their notary commission must be renewed. The fact that a notary acknowledges an instrument relating to real property by affixing a notary seal that is not in compliance with the requirements of the bill does not render the instrument or acknowledgment invalid or ineffective, nor does noncompliance render title unmarketable.

S.B. 30 Matters Related to a Foreclosure Sales.  This bill makes several minor administrative changes to foreclosure procedures including, among other things, establishing a form for the cure statement, requiring that any assignment of lien to a person intending to redeem must be attached to any notice of intent to redeem by a lienor, providing that all assignments of redemption rights must be complete by the end of the redemption period, changing the time when a confirmation deed is to be executed (with some exceptions) to no earlier than 10 or later than 15 business days after title vests, and specifying when an assignee must be listed as the grantee on such deed. The bill also makes provision for releasing a deed of trust which has been recorded in the wrong county. (Effective September 1, 2012)

S.B. 38 Protection of Consumers Who Engage a Roofer.  This bill would allow a consumer with a claim on a damaged roof with a property and casualty insurance company to cancel his contract with the roofer within 72 hours of entering into the contract or denial of the claim by the P&C insurance company. A concern of the title industry is that this bill raises the possibility of mechanic's liens being filed by the roofing company who starts their work but is then not paid by the owner or insurance company. (Effective May 15, 2012)

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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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