July 18, 2019

Colorado Supreme Court: Narrow Exception to Statute Voids Public Trustee’s Release of Deed of Trust

The Colorado Supreme Court issued its opinion in Shaw v. 17 West Mill St, LLC on Monday, June 24, 2013.

Real Property—Release of Deed of Trust—Fraudulent Request for Release of Deed of Trust—Recording Act—Bona Fide Purchaser.

Arguing that actual fraud is required under CRS § 38-39-102(8), Dennis Shaw and First Horizon Home Loan Corporation challenged the court of appeals’ ruling that “constructive fraud” is sufficient to void a request for a release of a deed of trust. The Supreme Court reversed, concluding that the statute creates a narrow exception that voids the public trustee’s release of a deed of trust only when proof of actual fraud is demonstrated by a preponderance of the evidence.

Summary and full case available here.

Governor Hickenlooper Signs Several Bills Into Law

Governor Hickenlooper continues to sign bills into law as they make it through the House and Senate. To date, he has signed 46 bills into law since January 31, 2013. Most recently, he signed 15 bills on March 8, 2013. Five of these bills are summarized here.

The governor also signed four bills on February 27, 2013, which are summarized here.

Prior to this, the governor signed 23 Joint Budget Committee bills and two other bills on February 19, 2013.

For a complete list of the governor’s legislative decisions to date, click here.

HB 13-1072: Allowing Public Trustees to Purchase Crime Insurance In Lieu of Performance Bonds

On January 11, 2013, Rep. Spencer Swalm and Sen. John Kefalas introduced HB 13-1072 – Concerning the Authority for Counties to Purchase Crime Insurance Coverage for Public Trustees in Lieu of Surety BondsThis summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Current law requires public trustees to execute surety bonds covering the faithful execution of their offices. This bill authorizes counties to purchase crime insurance coverage for public trustees in lieu of purchasing surety bonds for these public officials. The bill was approved by the House on February 7 and is assigned to the Local Government Committee in the Senate.

Since this summary, the bill was referred unamended to the consent calendar of the Senate Committee of the Whole.

SB 13-022: Making the County Treasurer the Public Trustee in All Colorado Counties Except Denver and Broomfield

On Wednesday, January 9, 2013, Sen. Kent Lambert introduced SB 13-022 – Concerning the County Treasurer Becoming the Public Trustee in the Counties Where the Public Trustee is Currently Appointed by the
Governor. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Currently, 10 counties designated as counties of the second class in the public trustee law have a public trustee who is appointed by the Governor. According to current law, the city and county of Denver is a county of the first class and should also have an appointed public trustee, but the public trustee in the city and county of Denver is specified in its charter. In the remainder of the counties the county treasurer serves as the public trustee; except that, in the city and county of Broomfield, the public trustee is specified in its charter.

On or before Feb. 1, 2015, in all counties of the second class, the county treasurer of the county shall become the public trustee. The board of county commissioners of each such county shall determine the date on which the county treasurer of the county will become the public trustee.

On and after Feb. 1, 2015, the county treasurer will be the public trustee in all counties in the state; except that in the city and county of Broomfield and the city and county of Denver, the public trustee will be such equivalent officer as is specified in the city and county’s charter or code.

Beginning Feb. 1, 2015, the governor’s authority to appoint the public trustee in counties of the first and second classes and to fill vacancies in the office of the public trustee in such counties is eliminated.

On Jan. 23, the State, Veterans, & Military Affairs voted to Postpone Indefinitely (kill) the bill.

34th Annual Colorado Real Estate Practice Course

The Fundamental Course & Texts in Colorado Real Estate!

The Colorado Real Estate Practice course has been offered annually since 1977, and is recognized as the best basic skills course in the Colorado real property law area. If you are a recent law school graduate or bar admittee, an experienced practitioner desiring a comprehensive refresher, a real estate professional, or a legal assistant working in real estate, this is a course you don’t want to miss!

The course will cover all of the fundamentals that practitioners and professionals need to know about Colorado real estate law, including:

  • Overview of real estate practice and malpractice, recognized areas of liability, and specialization
  • Deeds and conveyancing, surveys, and land descriptions
  • Title insurance, purchase and sale contracts, commercial and residential, and closings
  • Financing
  • Public trustee and judicial foreclosures, and quiet title actions

The course is presented by Willis Carpenter, Esq., who has been teaching it for the last 34 years. He is a frequent lecturer in continuing legal education programs, a past president of the Denver Bar Association, and has previously chaired the Real Estate Section Council of the Colorado Bar Association.

Participants will also receive three great texts to guide your practice in real estate after the course concludes:

  • Colorado Real Estate Practice (2011 Revised Edition) (Two Volumes)
  • Colorado Title Insurance Practice, 4th Edition
  • The Land Measurement Manual

The 10-week course has been submitted for 18 General CLE Credits, including 4 Ethics Credits. Additionally, 18 Real Estate Credits have been submitted, under C.R.S. § 12-61-100.5(3).

Don’t miss out on this opportunity to learn everything you need to know about Real Estate Practice in just 90 minutes a week! Register today and mark your calendars!

CLE Program: Colorado Real Estate Practice

This CLE presentation will take place over ten weeks, beginning Tuesday, September 13 and concluding Tuesday, November 22. Participants may attend live in our classroom or watch the live webcast.

Classes meet every Tuesday from 5:30-7:00 pm, except no class will be held on October 11.

Bankruptcy Court: Colorado Homestead Exemption Should Be Liberally Construed

The U.S. Bankruptcy Court for the District of Colorado issued its opinion in In re Elliot on Thursday, May 12, 2011.

11 U.S.C. § 522 (b)(1) and (3), C.R.S. § 38-41-207.

Trustee objected to Debtor’s claim of “homestead proceeds” exemption for surplus funds from public trustee’s foreclosure sale of Debtor’s former residence which were held in a segregated bank account. Though Colorado’s exemption statute for homestead proceeds explicitly refers only to proceeds from sale by owner or sale following levy and execution, the Court predicted that the Colorado Supreme Court would liberally construe the statute to apply to proceeds from public trustee sale. Debtor’s exemption was upheld.

Other published Bankruptcy Court opinions can be found here. Unpublished opinions can be found here.