Bulletin: UT2013004

Date:
October 21, 2013
To:
All Utah Issuing Offices
RE:
LEGISLATIVE UPDATES - Utah Legislation 2013

Dear Associates:

The following are summaries of bills that passed during the 2013 legislative session that affect our industry.

HB 0071 Mobile and Manufactured Home Amendments (UCA 41-1a-102 et. seq.): This bill repealed language regarding the obtaining of an affidavit of affixture and receipt of surrender of ownership documents and provides a process to convert a mobile home or manufactured home to an improvement to real property if the certificate of title has been lost or destroyed and a duplicate title cannot be obtained.

HB 303 Trust Deed Assignment Amendments (UCA 57-1-22.5 et. seq.): This bill provides for the recordation of a notice of assignment of a beneficial interest as prima facie evidence of the prior assignment of the trust deed described in the notice.

HB 385 Duties and Withdrawal of Trustee (UCA 57-1-21.5 and UCA 57-1-22): This bill provides that a named trustee in a deed of trust has no duties to the beneficiary until the trustee has received written instructions from the beneficiary directing it to exercise its powers and provides that a trustee may resign by recording a resignation of trustee. This allows a trustee to extricate itself from litigation where it has been named as a defendant simply because of its interest in the property as trustee.

HB 404 Short Sale Amendments (UCA 57-1-40-42): This bill provides that a title insurer or a title agent may reconvey a trust deed if the beneficiary or servicer agrees that partial payment of the obligation secured by the trust deed is sufficient to reconvey the trust deed.

HB 101 Homeowners Association Amendments (UCA 57-8-13.1): This bill clarifies an association’s right to attach and enforce liens following a period of noncompliance with the registration requirements. During any period of non-compliance with the registration requirements an association may not create a lien against the unit nor may it enforce an existing lien.

HB 47 Insurance Law Amendments (amended various sections of the Insurance Code): This bill modified who the members of the Title and Escrow Commission shall be, added restrictions regarding foreign title insurers, created a qualifying licensee for title and escrow, modified the requirement that a title insurance producer conduct a minimum mandatory search, and established who may conduct an escrow in Utah.

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