Bulletin: ID2015002

Date:
June 25, 2015
To:
All Idaho Issuing Offices
RE:
LEGISLATIVE UPDATE - Idaho Legislation 2015

Dear Associates:

The following is a summary of legislation that was passed in the 2014 legislative session. There were several bills that directly affect our industry. All the bills go into effect on July 1, 2015unless specifically noted.

SB 1069 Judgment Enforcement Time
This bill amended Sections 10-1110 and 45-510. The duration of a final judgment is now ten years from the date of the final judgment. The lien arising from the delinquency of a payment due under a judgment for child support continues until ten years after the death or emancipation of the last child for whom support is owed under the judgment.

HB 277 Title Insurance
This bill authorizes the issuance of and the charge for a Closing Protection Letter. Chapter 41-2714 was added to the Idaho Code. It states that a CPL may be issued to a buyer, borrower or lender that is a party to a transaction in which a title insurance policy will be issued. The rate for the CPL and the form of the CPL has been filed by Stewart and will become effective on July 1, 2015.

HB 109 Income Taxation: Real Property 
This bill amends Chapter 63-3022H by expanding the definition of real property for tax purposes. Real property means land and other tangible property permanently affixed to the land and includes a “qualified conservation easement”, “grazing permits or leases” issued by the U.S. forest service, the BLM, or the Idaho Department of Lands if the permit is transferred simultaneously with the transfer of the base property, and any other property defined in section 1250(c) of the IRC.

SB 1009 Real Estate License Law
This legislation establishes a uniform, one-year certification period for the Real Estate Commission’s certified education providers and instructors. The annual renewal date of June 30th coincides with other education requirements, such as the annual Instructor Development Workshop, the annual Commission Core Course, and the effective date for most law changes. Annual renewal will help ensure all education providers and instructors deliver the most current information to Idaho licensees and potential licensees. A uniform renewal date will simplify the re-certification process for instructors, providers and the Commission.

SB 1135 Claim of Lien, Owner, Deed of Trust
This bill amends Chapter 5 of Title 45 by adding a new subsection (6) to Section 507, which excludes trustees of a deed of trust as owner or reputed owner of the property subject to a lien. 

SB 1010 Real Estate Fee Splitting
Section 54-2054 of the License Law prohibits licensees from fee-splitting with unlicensed persons, and also prohibits sales associates from accepting an earned sales commission, fee or other compensation from anyone other than their own broker. Subsection 54-2054(2) provides an exemption for payment by the broker to a legal business entity owned exclusively by active Idaho licensees. This bill clarifies the scope of that exemption to ensure against misuse and accommodate common industry practices. 

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

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