Bulletin: UT2020001

Dear Associates:

The following is a summary of legislation that was passed during the 2019 legislative session.

SB 121. Controlled Business in Title Insurance Repeal. This bill repealed in its entirety UCA 31A-23a-503, Controlled Business in Title Insurance, which governed the controlled business relationships in the title industry. The bill introduced Affiliated Business in Title Insurance and established the regulations of affiliated business arrangements involving a title insurance entity (UCA 31A-23a-1101 et. seq.). The bill adopts RESPA as the state law governing affiliated business arrangements, with certain exceptions. The bill also provides that the Utah State Division of Real Estate shall enforce the provisions of the bill, including the submission of an annual report related to the title entity’s affiliated business arrangements and capitalization during the previous year.  To comply with the statute the affiliated business must among other things, have at least 30% of it’s business from non-controlled business.

HB 52. Remote Notarization Standards. This bill updates Utah’s notary laws and authorizes remote notarizations in Utah. The bill establishes the requirements for the process by which a remote notary may be certified. It establishes the procedures by which a remote notary may perform a remote notarization, including the standards for determining an individual’s identity and the standards for equipment, software and hardware by which a notary may perform a remote notarization (UCA46-1-3.5 and UCA 46-1-3.6). HB52 requires that the remote notary ensure that an electronic journal and electronic recording be maintained. The bill also has amended the fees that a notary may charge for the notarial acts, including remote notarization.

Please review the Stewart Bulletin SLS2019002 regarding Remote Online Notarization. https://www.vuwriter.com/en/bulletins/2019-11/mi2019006.html

HB 247. County Recorder Fees Amendments. There have been changes to UCA 17-21-18.5 affecting the recording fees enacted by the adoption of HB 247. The significant changes include raising the fee from $10.00 per document with the additional per page charge to a flat fee of $40.00, with a $2.00 charge for each legal description or mining claim over 10 descriptions. The bill removed the section of the code regarding the fixed fee for recording instruments that complied with RESPA.

HB 315. Land Use and Development Amendments. This bill amends the Acts regarding the land use and management in the state. The section of the bill that we want to bring to your attention relates to UCA 57-1-45 Boundary Line Agreements. The Bill adds to the previous requirements the requirements that a boundary line agreement shall also include the parcel or lot each grantor owns before the boundary line is changed and include a statement citing the file number of a record of a survey map with the county surveyor (UCA 17-23-17) in conjunction with the boundary line agreement.

HB 322. Title Insurance Amendments. This bill amends UCA 31A-23a-406 relating to a title insurance producer’s (agency) authority to act as escrow involving real property transactions. The Bill removes the requirement of (1)(c) if the transfer of property is from the School and Institutional Trust Lands Administration, UCA 31A-23a-406(3). In other words, a title producer may now act as escrow without issuing a policy if the land is owned by SITLA.

HB 395. State Construction Registry Amendments. This bill added to the code Section 38-1a-603, Notice of Intent to Finance. Careful review will show that the Notice of Intent to Finance may be filed with the registry. The bill, as it was introduced, contained language providing time constraints for SCR filers relating to the Notice of Intent to Finance and the ability for filers to file with the registry progress waivers and final waivers. However, that portion was challenged and eventually pulled from the bill during the legislative session. There is hope that something can be done within the 2020 legislative session to address the challenge of obtaining waivers on transactions we are working to insure.

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

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.