5/2/08 - VATC Legislation Passes!
Greetings:
Sorry for the lengthy message BUT I am extremely excited to report that VATC's 2008 Legislation has passed and will bring relief soon!
Thanks to the hard work of folks mentioned below, the House and Senate just approved a bill sponsored by VATC which we believe will simplify your life as a real estate practitioner. The bill is S.171 (note: on the purely technical side of things, the VATC bill was introduced as H.722 but, in a procedural maneuver, the language from H.722 was taken and inserted into S.171 - the bill that ultimately passed). The Governor is expected to sign it and it will become effective July 1, 2008.
Among other things, this VATC sponsored bill:
1. "Overturns" the Supreme Court's decision in Mainolfi. As a result, spouses will now be free to convey title to each other and such conveyances will include their homestead interests. No more problems with QC deeds during divorces!!
2. Provides that "problem" mortgage discharges on 1-4 Family Residential property are valid after being of record for three or more years upon the execution of an affidavit from the current owner. No more chasing those nasty, vile out-of-state mortgagees who don't respond to your requests!!
3. Provides that certain instruments, not otherwise valid, are valid after the document is of record for three years. For example, an improperly acknowledged deed or mortgage will now be valid after three years - not fifteen years. Similarly, a deed which fails to state consideration is valid after three years as is a deed from a corporation which was signed by a person in their "individual capacity". No more quiet title actions!!
In addition to the above, the bill also includes an amendment to 27 VSA §464a "Discharge by Licensed Attorney". While this section was not part of the VATC bill, it may prove helpful. Among other changes, the amendment: drops the requirement that an attorney provide the mortgagee with written notification by certified mail that the attorney intends to execute and record a discharge of the mortgage; and it provides that an attorney who executes a discharge is not liable to the mortgagee except in the event of negligence or fraud.
Kudos go to many people: House Representative Peg Flory (Pittsford) co-sponsored the bill and "brought it to life" at the 11th hour in House Judiciary; House Representative, and VATC member, Willem Jewett (Ripton and a bunch of other towns) was a key co-sponsor and helped in House Judiciary - other sponsors were Shap Smith & Sandy Haas; Chuck Storrow from Kimbell, Sherman & Ellis was our lobbyist who dogged the bill from inception to passage; Bob Paolini from the Vermont Bar Association and Chris D'Elia from the Vermont Bankers Association helped shepard the bill through the legislative process with their usual, quiet effectiveness.
Finally, the biggest thanks go to - OUR MEMBERS. Without such support we could not afford to undertake the expensive efforts of getting key legislation passed. We thank you for your business and hope that you agree with us that your client's premium dollars are better spent on activities such as this right here in Vermont rather than lining the pockets of national, commercial title insurance company shareholders. Yes - there truly is a difference with a Bar-Related™ insurance company and we cannot do this without the help and support of our members!!
Thank you.
A copy of the Committee Report - which contains the actual text of the bill - will be posted to our website shortly. www.vermontattorneystitle.com [Click on link at bottom of page for Committee Report].
As always, questions and comments are welcome.
Andy
Andrew D. Mikell
State Manager/Title Counsel
Committee Report - 23.11 KB - PDF
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