The following are summaries of some of the bills passed during the 2016 legislative session of interest to the title insurance industry.
HB-1145 - Requires that the amount of the documentary fee on residential property will be based on the amount of consideration shown on the deed, or, if no consideration is shown, the total sales price as shown on the transfer declaration. There will be no reduction for any consideration paid for personal property. For the purpose of computing the documentary fee, the property described in a deed is regarded as residential unless the deed or other instrument contains a statement that it is not residential. Applies to fees on documents recorded after July 1, 2016.
HB-1339 - Provides that for purposes of scheduling the sale in a foreclosure, property can be considered to be agricultural even if it contains a residential structure on a space of two acres or less. Effective August 10, 2016.
HB-1356 - Provides that a deed of trust that secures a line of credit continues if the outstanding amount is paid in full. But it must be released if the line of credit expires and all indebtedness under it is satisfied. It must also be released before expiration if the indebtedness is satisfied and the debtor relinquishes in writing all rights to make further draws. The debtor also relinquishes all rights to make future draws if he notifies the creditor that the property is being conveyed upon payment of all indebtedness, When this is done and the creditor is notified, the line of credit is terminated and the deed of trust must be released. Effective August 10, 2016.
SB-029 - This bill adds to the 2014 insurance company holding systems law provisions taken from the NAIC model law which compel production of information which was omitted from the 2014 law. The bill also enacts the NAIC Own Risk and Solvency Assessment model law. This requires insurers to maintain a risk management framework to assist the insurer to identify and manage risks. Effective January 1, 2017.
SB-115 - This bill creates the Electronic Recording Technology Board. This board is to develop a plan for security, uniformity, proper sequencing, public access to public records, develop standards for electronic filing systems, and best practices for electronic records. It is also to provide training in these systems as needed. It can impose a new surcharge of $2 on all documents a Clerk and Recorder receives for recording after January 1, 2017, and extends the current $1 charge. It will also make grants to counties to establish and improve such systems. Effective June 10, 2016.
SB-133 - This bill amends the provisions relating to the supplementary affidavit proving the death of a joint tenant when a death certificate is available to (1) eliminate the requirement that the person giving the affidavit has no interest in the property and (2) to include a statement in the affidavit that the person referred to in the death certificate is the same person who is named in the deed which created the joint tenancy. In another section it also sets out more details that must be recited in a petition for the determination of heirship and clarifies notice requirements. Effective August 10, 2016.
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