Bulletin: CO2017002

Date:
July 26, 2017
To:
All Colorado Issuing Offices
RE:
LEGISLATIVE UPDATE - 2017 Colorado Legislation

Dear Associates:

The following are summaries of some bills passed during the 2017 Colorado legislative session, which are of interest to the title insurance industry. All bills will become effective as of August 9, 2017, unless otherwise noted. 

House Bill 17-1231 (Market Conduct Examinations): This bill separates and clarifies statutory language regarding market conduct examinations and financial examinations conducted by the Division of Insurance. The bill becomes effective January 1, 2018. 

House Bill 17-1279 (Construction Defect Approval): This bill limits the ability of the executive board of an owners’ association to file a construction defect lawsuit. Before filing a construction defect lawsuit, the executive board must now provide notice and hold a meeting at which all unit owners will be provided with information regarding the benefits and costs of filing the lawsuit. The unit owners must then approve, by majority vote, whether to approve the filing of any construction defect lawsuit. This bill becomes effective September 1, 2017. 

House Bill 17-1363 (Energy Improvement Programs): This bill revises some of the requirements regarding the financing of Energy Improvement Programs under Colorado’s PACE legislation. Specifically, the notice and title insurance requirements for residential properties have been waived if the party providing the financing is not seeking the subordination of existing mortgages. This bill becomes effective August 9, 2017. 

Senate Bill 17-097 (Vacated Right-of-Ways): This bill modifies Colorado law to provide that every conveyance or encumbrance of real property, voluntary or otherwise, is deemed to include the grantor’s interest, if any, in any vacated street, alley, or other rights-of-way that adjoins the real property. Now any deed, lease, deed of trust, or other lien is deemed to include the vacated right-of-way unless that interest is expressly excluded in the terms of the instrument. This bill becomes effective August 9, 2017.

Senate Bill 17-129 (Electronic Preservation of Plats): This bill allows the various County Clerk and Recorders to begin electronically preserving plats, subdivision plats, and land survey plats. This bill becomes effective August 9, 2017.

Senate Bill 17-132 (Revised Uniform Law on Notarial Acts): This bill adopts certain provisions of the RULNA including those provisions regarding the effectiveness and recognition of electronic notarization, but did not adopt or allow any provisions relating to remote notarization. This bill becomes effective August 9, 2017. 

Senate Bill 17-140 (Elimination of Torrens Title Registration System): This bill provides that, beginning on January 1, 2018, an owner of real property may no longer register title to the property under the Torrens Title System. The bill goes on to provide for the eventual elimination of the Torrens Title System in Colorado with all currently registered properties to be removed on or before January 1, 2020. This bill becomes effective August 9, 2017.  

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