Bulletin: WY2013001

Dear Associates:

The following are summaries of some of the bills passed during the 2013 legislative session of interest to the title insurance industry.

HB-3 This bill provides that a financing statement filed prior to July 1, 2013, remains effective for five years but one filed on or after that date is effective for 10 years. Upon timely filing of a continuation statement on or after July 1, 2013, the effectiveness of the initial financing statement continues for a period of 10 years from the day the financing statement would otherwise have become ineffective.

HB-98 This bill increases the recording fees on various documents that the county clerk can charge. Some of the increases are as much as double or more of the prior fees. You should review the bill for the type of document and fees involved.

HB-134 This bill amends the procedures for establishing a private road. Instead of filing an application with the Board of County Commissioners, a person whose property has no outlet to, nor connection with a public road, must now commence an action in the district court and name all parties with interests in the land over which the plaintiff has requested a private road will cross. If the basis for a private road are proven and costs paid, a certified copy of the court’s order creating the road must be recorded.

HB-139 This bill makes several amendments to the Uniform Trust Code. It permits spouses to transfer property held in tenancy by the entirety to a trust without losing creditor claim protections with certain qualifications. The bill also limits creditor access to trust property if the transfer to an irrevocable trust does not violate fraudulent transfer laws. Certain provisions are added which would make a trust not to be deemed irrevocable under the spendthrift trust provisions of the code.

HB-201 This bill creates the Nontestamentary Transfer of Real Property on Death Act. This provides for a deed that conveys an interest in real property to a grantee beneficiary and that expressly states that the deed is effective on the death of the owner. The deed is subject to all conveyances, liens and other encumbrances made by the owner or to which he was subject during his lifetime and to any interest in the property of which the grantee beneficiary had actual or constructive notice. The transfer on death deed may designate a successor grantee beneficiary. The bill also contains provisions relating to joint tenancy held by the grantor and requires that the last surviving joint tenant must have signed the deed. A transfer on death deed and any revocation of it must be recorded before the death of the owner. If the owner owes Medicaid payments a lien may be asserted by the department of health for any recoverable amount. We must confirm that no such lien will be asserted. If multiple transfers on death deeds are recorded the last one recorded before death is the effective deed. A will does not affect the deed. The act provides the method for proof of the death of the owner and forms of the transfer on death deed and revocation. 

SF-9 The current statute prohibiting the enforcement of private transfer fees recorded or entered into after April 1, 2012, ends on July 1, 2014. This bill makes the prohibition permanent.

SF-124 This bill provides an alternative method to discharge frivolous liens filed against the property of a government official to harass those officials for actions taken in their official capacity. The official can now file an affidavit with the required information with the county clerk. If the claimant, after proper notice, fails to file a petition in the district court stating that the lien is valid the official obtains a certification to that effect and records it. At that point the lien is deemed to be null and void. An alternate procedure is set out when the lien claimant does file a petition in district court.

SF-127 This bill extends the time limit for sending notice of a recorded construction lien to the last record owner from 5 days to 30 days. However, failure to send this notice does not affect the validity of the lien. The time for recording the satisfaction of a lien is also extended from 5 days to 30 days.

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

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