Bulletin: UT2016002

Date:
June 08, 2016
To:
All Utah Issuing Offices
RE:
LEGISLATIVE UPDATE - Utah 2016 Legislation

Dear Associates:

The following is a summary of legislation that was passed during the 2016 legislation.

HB 163. This Bill is the legislative response to Orlando Millenia vs. United Title, the Utah Supreme Court case decided in July 2015. The Bill amends UCA 31A-23a-407. It provides for the liability of title insurers under certain circumstances, removes direct and primarily liable language, and defines parties an underwriter can be liable to (buyer, seller, borrower, lender, or 3rd party that deposits money with an agent). Liability of the underwriter and the agent is limited to the amount received or disbursed not to exceed the amount of proposed insurance set forth in the commitment or policy plus 10% of the amount of the proposed insurance. The Bill does not change or affect any contractual obligations that may exist between the underwriter and its agents. Further, the liability of the underwriter with respect to the condition of title to the real property is limited to the terms and conditions of the commitment and policy.

HB 74. This Bill adopted the Uniform Power of Attorney Act. The Bill creates a framework to create a durable power of attorney, specifies the duties of an agent once the agent accepts appointment, describes the different types of grants of authority and provides for very broad predefined powers including real estate powers and suggests a standardized form of Power of Attorney. “Durable” is defined as “not terminated by the principal’s capacity”. The Bill creates UCA 75-9-101 et. seq.

HB 32. Subdivision Base Parcel Tax Amendments. This statute will make our lives easier. The Bill addresses the payment of property tax on a base parcel that is subdivided into one or more parcels.  A bona fide purchaser can make a tax payment for his lot which payment will be applied to the proportionate share of acreage the lot bears to the base parcel. The County Treasurer is to provide the amount upon request. A Notice of Delinquency must go to the record owner of each subdivided lot. A bona fide purchaser can redeem a subdivided lot by paying his proportionate share of the taxes.

HB 255. This Bill clarified the definition of a condominium unit. Prior to this Bill a condominium technically did not exist until it was built even though a condominium plat and condominium declaration had been recorded. This Bill provides that an unconstructed unit is a condominium unit and that the unconstructed unit has a share of the undivided interest in the common area and facilities and voting rights.

HB 17 3rd Substitute. Assessment Area Foreclosure Amendments. This Bill modifies the methods by which a local entity may enforce an assessment lien. The Bill allows the local entity to appoint a trustee with power of sale. The law applies only where the property is part of a voluntary assessment area and if the owner of record consented to the assessment.

HB 161. Agriculture Parcel Amendments. This Bill allows a county legislative body to enact an ordinance allowing for the division of a parcel of land with an existing family dwelling without complying with platting requirements. If the new parcel is used for nonagricultural purposes then a plat will be required.

SB 22 Substitute. Foreclosure of Residential Rental Property. Requires the posting of the Notice of Sale in three conspicuous places instead of two, tenant to receive notice that it has a right to occupy until lease expires or 45 days from when the tenant received the notice to vacate, whichever is later. Rental agreements on residential rental property cannot be for longer than 12 months.

SB 220 S2. Non-Judicial Foreclosure Amendments. This Bill enacts provisions related to the joinder of a trustee in a legal action against a beneficiary. If the action does not involve the obligations of the trustee then the plaintiff is not required to name the trustee as a defendant. If the trustee is named and the litigation does not involve a breach of the trustee’s duties and obligations under the trust deed, the plaintiff can be held responsible for attorney’s fees and costs incurred by the trustee in getting dismissed from the litigation. Trustee now has 5 business days to record the Trustee’s Deed rather than three.

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:
15.52 Powers Of Attorney
Exceptions Manual:
Powers of Attorney
Forms:
None