Bulletin: MT2023001

Dear Associates:

The following are summaries of Bills passed during the 2023 Montana legislative session, which are of interest to the title insurance industry. All bills will become effective as of October 1, 2023, unless otherwise noted.

HB 61 – Remove insurance continuing education council  
This Bill revises Insurance CE rules by eliminating the Insurance Advisory Council and allowing the Insurance Commissioner to sign contracts with outside companies to review and approve CE courses. HB0061.pdf (mt.gov)

HB 118 – Revise warrant of distraint as statewide lien for certain funds
This bill was introduced by the Montana Department of Revenue to provide that a Warrant for Distraint creates a lien against personal property located within Montana including any money of the delinquent taxpayer. However, the Montana Department of Revenue cannot enforce the lien against the delinquent taxpayer’s monies received by and in the possession of a person in a county where the warrant is not filed, if the recipient, such as a title company, had no notice or knowledge of the execution or notice of levy. HB 118 has been signed in law and became effective as of May 18, 2023. HB0118.pdf (mt.gov)

HB 156 – Generally revise laws enforced by the State Auditor
This Bill included a provision to add and define the term “Title Guarantee” under the Montana Title Insurance Act. The Bill also added new language to allow the Insurance Commissioner to order payment of restitution to injured parties when the losses suffered are caused by actions that result in an administrative action in which the Insurance Commissioner seeks to suspend or revoke a title insurance license. This Bill goes into effect on January 1, 2024. HB0156.pdf (mt.gov)

HB 296 - Revising laws relating to real estate transaction disclosures
This Bill requires sellers of residential property to provide a written disclosure statement and requires sellers to disclose known adverse material facts to buyers with the execution of the Contract. It also provides requirements for the Disclosure Statement, provides exemptions, and provides for a buyer’s right to rescind. HB0296.pdf (mt.gov)

SB 247 - Revise covenant laws
This Bill revises covenants, providing an 8-year statute of limitations and limiting who may initiate legal action to enforce covenants. In addition, it revises when a covenant is deemed abandoned and limits when covenants may be enforced if a governing body has not met for a period of 15 years. 

SB 247 has been signed in law and became effective as of May 19, 2023. Please contact a Stewart Title Guaranty Company Underwriter for assistance with any request to delete an Exception for covenants that may be affected by this Bill. SB0247.pdf (mt.gov)

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

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