House Bill 1093

Chairman: Wendell Willard

Committee: Judiciary Civil

House Sponsor: Wendell Willard

Chairman Willard’s opinion of this legislation:

HB 1093 changes provisions which currently require lenders to release a security deed within sixty days of payoff or face damages in at least the amount of $500.00. This bill would require the property owner to send a written demand to the lender prior to filing suit based upon the statute.  The bill has been amended to require a lender to send either confirmation of the release or a notice of the borrower’s right to damages for the lender’s failure to release the security deed, within sixty days of when the security deed is paid off. HB 1093 decreases the likelihood of additional expensive class action lawsuits concerning the failure of lenders to cancel paid-off security deeds.

This bill passed the House under the Open Rule.

Further Action 

The Senate made changes to the exemption for reasonable inability of the grantee or holder to comply (p.2 lines 26-7) and to the written notice provisions (p.2 lines 31-5). The House agreed to the Senate changes and the bill was sent to the Governor.