Bulletin: CO000027

Dear Associates:

The following is a summary of bills enacted by the 1999 Colorado Legislature and subsequently signed into law by Governor Romer which have some impact, either directly or indirectly, on the business of title insurance in Colorado. Unless otherwise noted the effective date of each of these bills is July 1, 1999.

House Bill 1057 (Concerning the Modification of the Length of Time for which Title Insurance Documents must be Retained)

This bill was initiated by the Land Title Association of Colorado. It changes the length of time that two categories of title insurance records must be retained to 7 years, which conforms to general business, real estate and bankruptcy practices. (Previous law required that the title policy file be kept for 15 years and the escrow file for 5 years.)

House Bill 1368 (Concerning the Discipline of Real Estate Licensees Using Incentives or Disincentives to Effect Referrals to Certain Title Insurance Entities)

This bill was initiated by the Land Title Association of Colorado. The bill addresses the offering of incentives or disincentives by Real Estate Brokers, for the referral of title insurance business. The bill requires the Real Estate Commission to begin rule making on the "kickback" issue no later than July 1, 1999.

Senate Bill 65 (Concerning Filings to Perfect Security Interest)

This Bill makes several changes in the operation of the state's Central Indexing System (central filing of the UCC Liens and agricultural liens). The amendments only affected liens against personal property and not liens against real estate.

This memorandum is intended to provide general information on new statues affecting title insurance in Colorado. As additional issues or questions arise regarding specific procedures to be followed in each case, please don't hesitate to contact Rand Zimmerman, Mike Cranmer or Bob Adams.