H.B. 12

1

REQUIREMENTS FOR RECORDING CERTAIN
2 REAL ESTATE DOCUMENTS
3 2004 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David Clark
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions regarding the recording of documents of real estate.
10 Highlighted Provisions:
11 This bill:
12 . eliminates the requirement that in order for a full reconveyance of a trust deed and
13 full release of mortgage to be recorded in the office of any county recorder a
14 document must contain a legal description of the real property affected; and
15 . requires a full reconveyance of trust deed and full release of mortgage to be
16 recorded if it contains a reference to the book and page where the description of the
17 real property is recorded.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 57-1-40, as last amended by Chapter 40, Laws of Utah 2002
25 57-3-105, as last amended by Chapter 320, Laws of Utah 2000
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 57-1-40 is amended to read:
29 57-1-40. Reconveyance of trust deed or release of mortgage -- Procedures --
30 Forms.
31 (1) A title insurer or title agent may reconvey a trust deed or release a mortgage in
32 accordance with the provisions of Subsections (2) through (6) if:
33 (a) the obligation secured by the trust deed or mortgage has been fully paid by the title
34 insurer or title agent; or
35 (b) the title insurer or title agent possesses satisfactory evidence of the full payment of
36 the obligation secured by a trust deed or mortgage.
37 (2) A title insurer or title agent may reconvey a trust deed or release a mortgage under
38 Subsection (1) regardless of whether the title insurer or title agent is named as a trustee under a
39 trust deed or has the authority to release a mortgage.
40 (3) At the time the obligation secured by the trust deed or mortgage is paid in full, or at
41 any time thereafter, the title insurer or title agent shall deliver a notice of intent to release or
42 reconvey and a copy of the release or reconveyance to be recorded, as described in Subsection
43 (4), to the beneficiary, mortgagee, or servicer at:
44 (a) the address specified in the trust deed or mortgage;
45 (b) any address for the beneficiary or mortgagee specified in the last recorded
46 assignment of the trust deed or mortgage;
47 (c) any address for the beneficiary, mortgagee, or servicer specified in a request for
48 notice recorded under Section 57-1-26 ; or
49 (d) the address shown on any payoff statement received by the title insurer or agent
50 from the beneficiary, mortgagee, or servicer.
51 (4) The notice of intent to release or reconvey shall contain the name of the beneficiary
52 or mortgagee and the servicer if loan payments on the trust deed or mortgage are collected by a
53 servicer, the name of the title insurer or title agent, the date, and be substantially in the
54 following form:
55 NOTICE OF INTENT TO RELEASE OR RECONVEY
56 Notice is hereby given to you as follows:
57 1. This notice concerns the (trust deed or mortgage) described as follows:
58 (Trustor or Mortgagor):____________________________________________

59 (Beneficiary or Mortgagee):________________________________________
60 Recording information:____________________________________________
61 Entry Number:___________________________________________________
62 Book Number:_______________________________________________
63 Page Number:_______________________________________________
64 2. The undersigned claims to have paid in full or possesses satisfactory evidence of the
65 full payment of the obligation secured by the trust deed or mortgage described above.
66 3. The undersigned will fully release the mortgage or reconvey the trust deed described
67 in this notice unless, within 60 days from the date stated on this notice, the undersigned has
68 received by certified mail a notice stating that the obligation secured by the trust deed or
69 mortgage has not been paid in full or that you otherwise object to the release of the mortgage or
70 the reconveyance of the trust deed. Notice shall be mailed to the address stated on this form.
71 4. A copy of the (release of mortgage or reconveyance of trust deed) is enclosed with
72 this notice.
73

(Signature of title insurer or title agent)

74

(Address of title insurer or title agent)

75 (5) (a) If, within 60 days from the day on which the title insurer or title agent delivered
76 the notice of intent to release or reconvey in accordance with Subsections (3) and (4), a
77 reconveyance of trust deed or release of mortgage is not recorded, and the beneficiary,
78 mortgagee, or servicer does not send by certified mail to the title insurer or title agent a notice
79 that the obligation secured by the trust deed or mortgage has not been paid in full or that the
80 beneficiary, mortgagee, or servicer objects to the release of the mortgage or reconveyance of
81 the trust deed, the title insurer or title agent may execute, acknowledge, and record a
82 reconveyance of a trust deed or release of a mortgage.
83 (b) A reconveyance of a trust deed under Subsection (5)(a) shall be in substantially the
84 following form:
85 FULL RECONVEYANCE OF TRUST DEED
86 (Name of title insurer or title agent), a (title insurer or title agent) authorized to conduct
87 business in the state does hereby reconvey, without warranty, the following trust property
88 located in (name of county) County, state of Utah, that is covered by a trust deed naming (name
89 of trustor) as trustor, and (name of beneficiary) as beneficiary and was recorded on (date) in

90 Book ________ at Page _________ as Entry Number _________[: (insert a description of the
91 trust property.)].
92 The undersigned title insurer or title agent certifies as follows:
93 1. The undersigned title insurer or title agent has fully paid the obligation secured by
94 the trust deed or possesses satisfactory evidence of the full payment of the obligation secured
95 by the trust deed.
96 2. In accordance with the requirements of Utah Code Annotated Subsections 57-1-40 (3)
97 and (4), the title insurer or title agent delivered to the beneficiary or servicer, a notice of intent
98 to release or reconvey and a copy of the reconveyance.
99 3. The trust deed has not been reconveyed and the title insurer or title agent did not
100 receive, within 60 days from the day on which the title insurer or title agent delivered the notice
101 of intent to release or reconvey, a notice from the beneficiary or servicer sent by certified mail
102 that the obligation secured by the trust deed has not been paid in full or that the beneficiary or
103 servicer objects to the reconveyance of the trust deed.
104 ___________________________________ __________________________________
105 (Notarization)

(Signature of title insurer or title agent)

106 (c) A release of a mortgage under Subsection (5)(a) shall be in substantially the
107 following form:
108 FULL RELEASE OF MORTGAGE
109 (Name of title insurer or title agent), a (title insurer or title agent) authorized to conduct
110 business in the state does hereby release the mortgage on the following property located in
111 (name of county) County, state of Utah, that is covered by a mortgage naming (name of
112 mortgagor) as mortgagor, and (name of mortgagee) as mortgagee and was recorded on (date) in
113 Book ________ at Page _________ as Entry Number _________[: (insert a description of the
114 trust property.)].
115 The undersigned title insurer or title agent certifies as follows:
116 1. The undersigned title insurer or title agent has fully paid the obligation secured by
117 the mortgage or possesses satisfactory evidence of the full payment of the obligation secured by
118 the mortgage.
119 2. In accordance with the requirements of Utah Code Annotated Subsections 57-1-40 (3)
120 and (4), the title insurer or title agent delivered to the mortgagee or servicer a notice of intent to

121 release or reconvey and a copy of the release.
122 3. The mortgage has not been released and the title insurer or title agent did not
123 receive, within 60 days from the day on which the title insurer or title agent delivered the notice
124 of intent to release or reconvey, a notice from the mortgagee or servicer sent by certified mail
125 that the obligation secured by the mortgage has not been paid in full or that the mortgagee or
126 servicer objects to the release of the mortgage.
127 ___________________________________ __________________________________
128 (Notarization)

(Signature of title insurer or title agent)

129 (d) (i) A release of mortgage or reconveyance of trust deed that is executed and
130 notarized in accordance with Subsection (5)(b) or (c) is entitled to recordation.
131 (ii) (A) Except as provided in Subsection (5)(d)(ii)(B), a reconveyance of a trust deed
132 or release of a mortgage that is recorded under Subsection (5)(d)(i) is valid regardless of any
133 deficiency in the release or reconveyance procedure not disclosed in the release of mortgage or
134 reconveyance of trust deed.
135 (B) If the title insurer's or title agent's signature on a release of mortgage or
136 reconveyance of trust deed recorded under Subsection (5)(d)(ii)(A) is forged, the release of
137 mortgage or reconveyance of trust deed is void.
138 (6) A release of mortgage or reconveyance of trust deed under this section does not, by
139 itself, discharge any promissory note or other obligation that was secured by the trust deed or
140 mortgage at the time the trust deed was reconveyed or the mortgage was released.
141 Section 2. Section 57-3-105 is amended to read:
142 57-3-105. Legal description of real property and names and addresses required in
143 documents.
144 (1) A document executed after July 1, 1983, is entitled to be recorded in the office of
145 any county recorder only if the document contains a legal description of the real property
146 affected.
147 (2) (a) A document affecting title to real property presented for recording after July 1,
148 1981, is entitled to be recorded in the office of any county recorder only if the document
149 contains the names and mailing addresses of the grantees in addition to the legal description
150 required under Subsection (1).
151 (b) The address of the management committee may be used as the mailing address of a

152 grantee as required in Subsection (2)(a) if the interest conveyed is a timeshare interest as
153 defined by Section 57-19-2 .
154 (3) Each county recorder shall refuse to accept a document for recording if it does not
155 conform to the requirements under this section.
156 (4) Notwithstanding Subsections (1), (2), and (3), a master form, as defined in Section
157 57-3-201 , that does not meet the requirements of Subsections (1) and (2) is entitled to be
158 recorded in the office of any county recorder if it complies with Part 2, Master Mortgage and
159 Trust Deeds.
160 (5) The legal description requirement in this section does not apply to a Full
161 Reconveyance of Trust Deed or Full Release of Mortgage in Section 57-1-40 .




Legislative Review Note
as of 10-24-03 9:51 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Interim Committee Note
as of 12-10-03 8:02 AM

The Business and Labor Interim Committee recommended this bill.