- June 25, 1992
- All Stewart Title Owned Offices and Agents in Colorado
- The Colorado Common Interest Ownership Act (CCIOA) CRS 38-33.3-101 et.seq.
The Colorado Common Interest Ownership Act (CCIOA) was signed into law in 1991 and becomes effective in Colorado July 1, 1992. This law provides that certain assessment liens have limited priority over first deeds of trust. This act is similar to the Uniform Common Ownership act. In Colorado, the amount of assessment having priority is the equivalent of 6 months assessments. This "super priority lien" could have a negative impact on our title insurance policies unless you modify the following endorsements:
- In all cases you must modify the condo endorsement, Colorado Form 115.1, by deleting all of paragraph 4 by X'ing it out with a typewriter.
- In all cases you must modify the PUD endorsement, Colorado Form 115.2, by deleting paragraph 2 by X'ing it out with a typewriter.
- Additionally, Colorado Form 100 (which is similar to the ALTA Form 9 endorsement) contains paragraph 2 which provides insurance against loss due to the existence of provisions and covenants and restrictions which would create a loss of priority of the insured lien. Because the assessment lien priority would affect priority of the insured lien, if you are asked to issue a Form 100 or an ALTA 9 on a condominium unit or a PUD, you must delete all of paragraph 2 from those forms. Again, please X out the appropriate paragraph on a typewriter. Examples are attached.
Additionally, if you issue any master policy or short form policy in which the Colorado Form 100 (or ALTA 9) , Colorado Form 115.1 or Colorado Form 115.2 is incorporated into the coverage by marking a box, it will be necessary for you to include with the certificate or short form policy an addendum deleting the appropriate paragraphs from the incorporated endorsements if you have included the coverage in the policy. Blank addendums are available from the Forms Department in Houston.
For those agents involved in closings for properties in common interest communities that are formed on or after July 1, 1992, or that "elect in" under the Statute please be aware that the association must be prepared to furnish a statement setting forth the amount of unpaid assessments upon request by an owner, a lender, or the designee of either. That would include the title company. This request and the response must be delivered personally or by certified mail first class postage prepaid. Should the association fail to furnish the statement within 14 business days of receipt of this request, the association will lose its right to assert the priority lien described above. The request for assessment status must be delivered or sent to the association's registered agent under the Colorado Non-Profit Corporation Act. Company policy is that an assessment status statement must be obtained prior to closing.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
- Bulletins Replaced:
- Related Bulletins:
- ALTA Endorsement 4.1 (Condominium)
- ALTA Endorsement 5.1 (Planned Unit Development)
- ALTA Endorsement 9 (Restrictions, Encroachments, Minerals) (10/17/98)
- ALTA Master Residential Loan Policy Schedules A and B, Residential Loan Certificate and Addendum 1992
- ALTA Short Form Residential Loan Policy and Addendum 1992
- CO Condominium Endorsement 115