Bulletin: CO000007

Date:
July 13, 1994
To:
All Stewart Title Owned Offices and Agents in Colorado
RE:
Legislative Summary 1994

Dear Associates:

The following is a summary of bills enacted by the 1994 Colorado Legislature and subsequently signed into law by Governor Romer which have some impact, either directly or indirectly, on the business of title insurance in Colorado. Unless otherwise noted, the effective date of each of these bills is July 1, 1994.

Senate Bill 94-216 (Development of Large Planned Communities Under The "Colorado Common Interest Ownership Act")

This bill creates a new category under the "Colorado Common Interest Ownership Act" ("CCIOA") for the development of large planned communities. CCIOA now sets forth the requirements that a planned community must meet to be designated as a large planned community. This bill allows for special assessments on retail sales transfers, and specified services within a large planned community as provided for in the declaration.

At this time, it does not appear that this bill changes any of our closing or title procedures.

Senate Bill 94-132 (Concerning The Filing of Security Interests)

This bill sates that a security interest on farm products will not be deemed perfected after July 1, 1994 unless it is filed with both the central filing system, as established in C.R.S. 4-9.5-104, and the county clerk and recorder. The bill establishes a committee to study the central filing system with the specific responsibility of examining the feasibility of expanding the system to provide a single filing system for all security interests. The Colorado Land Title Association will have a seat on this committee and we will keep you apprised of future developments.

At this time, it does not appear that this bill changes any of our closing or title procedures.

Senate Bill 94-43 (Adopts a Rewrite of a Portion of the "Colorado Probate Code")

Currently, it does not appear that this bill creates any changes in our existing title company, procedures, however, it may be helpful for each of you to be aware of some of the more significant changes.

Reduces from seven years to five years the length of time an individual whose death is not established must be absent in order to be presumed dead.

Establishes a different representation system for heirs to provide equal shares to those equally related.

Provides that the length of the marriage determines the amount of the surviving spouse's percentage share.

Abolishes the doctrine of worthier-title.

Continues provisions for holographic wills and antilapse.

In order to give probate attorneys adequate time to become familiar with these new provisions, the effective date of this act is July 1, 1995.

Senate Bill 94-33 (Broker Remuneration Disclosure)

This bill changes the time at which the identity of persons paying any compensation or commission to a real estate broker must be disclosed from the time an offer is made to the time when the parties enter into a contract. Removes the requirement that the specific amount of any commission being paid to a broker by any party be disclosed.

This bill affects our Realtor customers, however, it does not appear to change any of our closing or title procedures.

Senate Bill 94-168 (Uniform Unincorporated Non-Profit Association Act)

This bill allows unincorporated non-profit associations to receive, hold and transfer real and personal property in the name of the association. The bill also states that a non-profit association shall execute and record a statement of authority to encumber or transfer an estate or interest in real property in the name of the non-profit association before it encumbers or transfers such an estate or interest.

Significant portions of the bill state as follows:

C.R.S. 7-30-105

"(2) An estate or interest in real property in the name of a non-profit association may be encumbered or transferred by a person so authorized in a statement of authority recorded in the office of the clerk and recorder in the county or city and county in which the real property is situated.

(3) A statement of authority must set forth:

a. The name of the non-profit association;

b. The address in this state, including the street address, if any, of the non-profit association or, if the non-profit association does not have an address in this state, its address out of state;

c. The name or title of a person authorized to encumber or transfer an estate or interest in real property held in the name of the non-profit association; and

d. The action, procedure or vote of the non-profit association which authorizes the person to encumber or transfer the real property of the non-profit association and which authorizes the person to execute the statement of authority.

(4) A Statement of Authority must be executed in the same manner as a deed by a person who is not the person authorized to encumber or transfer the estate or interest."

As I am sure you are aware, title companies have struggled in the past when asked to insure transactions involving unincorporated non-profit associations, since we could not be assured of the proper authority of the parties involved. This new statute appears to answer most, if not all, of these outstanding issues. However as you have requests to insure transactions in the future with unincorporated non-profit associations please call Mike Cranmer, Bob Adams, Rand Zimmerman or other underwriting personnel in order to confirm the correct procedures.

House Bill 94-1228 (Concerning Regulation of Agency Relationships)

This bill primarily affects new procedures and formats for powers of attorney in Colorado. A new statutory form of power of attorney has been created by this bill and we will be analyzing this format in order to determine whether our standard form of power of attorney should be modified.

This bill has an effective date of January 1, 1995. Therefore, additional information will follow in a separate memorandum.

This memorandum is intended to provide general information on new statutes affecting title insurance in Colorado. As additional issues or questions arise regarding specific procedures to be followed in each case, please don't hesitate to contact Rand Zimmerman, Mike Cranmer or Bob Adams. We will be forwarding additional information and clarification as it becomes available.

 

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:
11.10 Legislation
Exceptions Manual:
CO Decedent’s Estates
 
CO Powers of Attorney
 
CO Uniform Commercial Code
Forms:
None