Bulletin: NM2019002

Date:
July 11, 2019
To:
All New Mexico Issuing Offices
RE:
LEGISLATIVE UPDATE - 2019 Legislative Update Effective July 1, 2019

Dear Associates:

Introduction

The 2019 New Mexico Legislature passed and enacted a number of bills that affect the title industry, which became effective on July 4, 2019.

HB 293 Duplicates of Instruments of Writing and Business Entity Authority

(Effective 6-14-19)

This bill amends Section 14-8-4 NMSA by changing the requirements for filing and recording duplicates of instruments of writing by inserting new Subsections D and E as follows:

D. If an original instrument of writing is unavailable but, if it were available, could be filed and recorded in accordance with this section, a duplicate of that instrument shall be accepted for filing and recording if accompanied by an affidavit executed pursuant to this subsection. The affidavit shall:

(1) provide the name, phone number and mailing address of the affiant;

(2) provide information regarding the execution of the instrument, consideration paid, delivery or other information establishing that the original instrument, if it were available, would be entitled to be recorded pursuant to Subsection A of this section;

(3) specify the reason the duplicate is filed and recorded in place of the original instrument; 

(4) include a statement that the duplicate is a true and correct copy of the original instrument; and

(5) be acknowledged and made under oath confirming that the statements set forth in the affidavit are true and correct and of the personal knowledge of the affiant.

E. The filing of a duplicate instrument in accordance with Subsection D of this section shall not incur a fee in addition to the fee, if any, charged for filing an original instrument. When the clerk records the instrument, the grantor and grantee shall be those of the duplicate instrument and the name of the affiant shall be indexed under miscellaneous information.

What you should do:  Require an affidavit in compliance with Section14-8-4 NMSA to record a duplicate instrument. When examining the affidavit if there is any question as to the information set out in the affidavit, New Mexico underwriting counsel should be consulted.  

This bill also adds Section 47-1-__ NMSA relating to the authority of persons in offices or positions in business entities to enter into real property conveyances and encumbrances.  

Entity:

Office or Position:

Cooperative Association

President and Vice President

Professional Corporation

President and Vice President

Nonprofit Corporation

President and Vice President

Business Corporation

President and Vice President

Limited Liability Company

Manager, Member Manager, President and Vice President

General Partnership

Partner

Limited Liability Partnership

General Partner

Limited Partnership

General Partner

A business entity may limit or expand authority by filing with the county clerk a statement reflecting the limitation or expansion of authority.  

An instrument executed by a person without the authority provided above may be relied upon as binding the business entity if the instrument or contract has been recorded for a period exceeding ten years, and said authority to execute has gone unchallenged. 

What you should do:  Review Section 47-1-__ NMSA for authority to convey real property owned by a business entity. Continue to review entity documents verifying the authority of office or position of the signing person.

HB 379 Acequia Property Liens from Court Judgments

(Effective 6-14-19)

This bill adds to Section 73-2-26 NMSA to allow acequias and community ditches to obtain a lien on property pursuant to magistrate and district court judgments.

What you should do: Upon finding a recorded judgment for acequias and/or community ditches against a property, require the release of said judgment.

HB 581 Hemp Manufacturing Act

(Effective 7-1-19)

This bill passed and federal regulations are required.

What you should do: Should you have any questions on a property regarding hemp research, production, sale or distribution of products containing hemp, please contact a Stewart Underwriter.

SB 150 Homeowner Associations Changes

(Effective 6-14-19)

This bill amends Section 47-16-12 NMSA relating to homeowner associations. Among other things, it amends the Sale of Lot Disclosure Certificate requirements by limiting the validity of the Disclosure Certificate to 60 days, and sets a limit of $300 on the cost for a Disclosure Certificate.

What you should do:  Only rely on Disclosure Certificates that are less than sixty (60) days old. Should the 60 days be exceeded, request an updated Disclosure Certificate.

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

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.  

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None