Bulletin: CO2021002

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Bulletin: CO2021002

Bulletin Document
V 1
Date: August 09, 2021
To: All Colorado Issuing Offices
RE: LEGISLATIVE UPDATE - 2021 Colorado Legislative Update

Dear Associates:

The following are summaries of some bills passed during the 2021 Colorado legislative session, which are of interest to the title insurance industry. All bills will become effective as of September 11, 2021, unless otherwise noted. 

House Bill 21-1004 – Colorado Uniform Electronic Wills Act: This bill declares that electronic wills are valid for all purposes of Colorado law and specifies requirements for the execution, attestation, certification, and revocation of electronic wills. The bill became effective as of January 21, 2021. 

House Bill 21-1167 – Private Construction Contract Payments: This bill applies to commercial construction contracts valued at $150,000 or more and limits the amount of retainage that an owner may withhold from a contractor to ensure satisfactory completion of work. The maximum amount of retainage allowed on all such contracts is now 5%. 

House Bill 21-1224 – Modification to Statutes Governing Foreclosure: This bill modifies various provisions within the Colorado foreclosure statutes. The primary change provides for the return of any overbid amounts to the borrower under the deed of trust being foreclosed rather than the current record owner of the property. In addition, the bill adds certain timeshare lenders to the definition of “Qualified Holder” for purposes of the foreclosure statutes. The bill became effective as of May 28, 2021. 

House Bill 21-1225 – Electronic Recording Technology Board: This bill extends the Electronic Recording Technology Board for an additional four years through September of 2026. As a result, County Clerk and Recorder’s will continue to collect the Electronic Recording Technology Board surcharge on all recorded documents. 

House Bill 21-1229 – Homeowners’ Association Governance: This bill requires unit owners’ associations in common interest communities (“HOAs”) to maintain certain financial records and to make those records available to unit owners when requested. Failure to comply with the record keeping and availability requirements makes the HOA liable for monetary penalties. This bill also requires HOAs to allow installation of renewable energy generation devices and drought-tolerant landscaping materials in certain situations. 

Senate Bill 21-262 – Special District Transparency: This bill amends various statutes regarding the governance of special districts and imposes additional requirements regarding special district elections and annual reporting. The bill also regulates the way a special district may enter into contracts for the construction of public improvements. Finally, the bill adds a disclosure requirement for each owner of real property that sells a newly constructed residence that is located within the boundaries of a special district. 

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

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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:
Exceptions Manual:
  • None
Forms:
  • None