Property - Digest of Bills

Digest of Bills - 2001

PROPERTY
S.B. 01-27 Consumer loans - written notice of default. Requires an owner of a consumer loan secured by a deed of trust or mortgage that encumbers a dwelling and that is recorded after January 1, 2002, to provide written notice of a default on the loan that consists solely of a failure to make any required payments and the opportunity to cure, to all persons liable on the debt. Requires the notice to be provided not more than 45 days after the initial default and at least 20 days prior to the recording of a notice of election and demand or the initiation of a suit for foreclosure. States that the failure to provide the notice and opportunity to cure does not affect the validity of the deed of trust or mortgage, the ability to foreclose, the foreclosure proceeding, or any proceeding conducted in connection with the foreclosure.

APPROVED by Governor April 20, 2001
EFFECTIVE August 8, 2001
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

S.B. 01-40 Titles and interests - trustees - joint ventures - notice of conveyance. Allows a trustee who holds title to real property on behalf of a trust to give notice of that trustee's representative capacity either before or after the instrument conveying the interest in real property has been recorded. Repeals the prohibition of such notice after an instrument conveying an interest in real property has been recorded.

Allows a trustee to execute and record a statement of authority in order to give notice of the existence of a trust and the authority of one or more trustees to act on behalf of the trust with respect to an interest in real or personal property held in the name of the trust.

Eliminates the requirement that a trustee must record an affidavit giving notice of the existence of a trust and the authority of one or more trustees to act on behalf of the trust before such trust is permitted to acquire, convey, encumber, lease, or otherwise deal with any interest in property in the name of the trust.

Permits a joint venture to acquire, convey, encumber, lease, or otherwise deal with any interest in property in the name of the joint venture, so long as a member of the joint venture records an affidavit giving notice of the existence of such joint venture either prior to or after the property is conveyed to the joint venture. Eliminates the requirement that such notice must be given before the property is conveyed to the joint venture.

APPROVED by Governor April 19, 2001
EFFECTIVE August 8, 2001
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 01-1060 Adjustment of tax lien certification fee by state agencies. Allows any state agency that collects the $10 fee currently collected by a public entity for each specifically identified tax included in a certificate of taxes due issued by the public entity to adjust the amount of the fee, by rule or as otherwise provided by law, to ensure that the amount of uncommitted reserves of any fund to which the fee is credited does not exceed statutory limits. Requires a transfer to the general fund of moneys in excess of the statutory target reserve that remain in the tax lien certification fund at the end of any state fiscal year commencing on or after July 1, 2000.

APPROVED by Governor May 23, 2001
EFFECTIVE May 23, 2001

H.B. 01-1166 Construction defect claims for property loss and damage - list of construction defects required - restricted negligence claims - statute of limitations - unit owners' association. Requires a claimant in an action for injury or loss to real property caused by construction defects to file with the court and serve on the defendant a list describing the defects. Permits the claimant to amend the list under certain circumstances. Prohibits the assertion of a negligence claim seeking damages for a residential construction defect under certain circumstances. Modifies the statute of limitations for certain actions against architects, contractors, builders or builder vendors, engineers, inspectors, and others. Under certain circumstances, requires the executive board of a unit owners' association to disclose to the unit owners that construction defect litigation has been instituted on behalf of the board or the unit owners.

H.B. 01-1281 Master form instruments - mortgage - deed of trust - recording of instruments. Authorizes any person to record a master form mortgage or deed of trust in the office of the county clerk and recorder. Allows forms to be recorded without any acknowledgment or signature; without identification of any specific real property; and without naming any specific mortgagor, mortgagee, trustor, beneficiary, or trustee. Requires every instrument to state on its face "Master form recorded by (name of person causing instrument to be recorded)". Requires the county clerk and recorder to index master forms in the grantee index under the name of the person recording the instrument.

Allows the provisions of a master form instrument to be incorporated by reference in any mortgage or deed of trust of real estate situated within the state if the reference meets certain criteria. States that any incorporation by reference has the same effect as if the referenced provisions had been included in the mortgage or deed of trust.

APPROVED by Governor March 30, 2001
EFFECTIVE July 1, 2001

H.B. 01-1358 Public trustees - fees - salaries - benefits - classification of counties. Increases the fees collected by public trustees for performing the following functions:

Executing a release of deed of trust;
Opening and administering a foreclosure;
Accepting the filing of a notice of intent to redeem;
Processing and executing a certificate of redemption; and
Executing a trustee's deed.

Increases salaries of public trustees:

In counties of the first and second class, from $32,000 to $48,500 annually; and
In counties of the third class, from $8,000 to $12,500 annually.

Permits public trustees in class 2 counties to collect benefits that do not exceed those received by other elected county officials.

Modifies the county classification system for purposes of regulating fees and salaries of public trustees by moving Douglas county from class 3 to class 2 and adding the city and county of Broomfield to class 3.

APPROVED by Governor June 5, 2001
PORTIONS EFFECTIVE September 1, 2001, November 15, 2001, January 1, 2003
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.