Legislature(1999 - 2000)
05/11/1999 01:45 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 13-REGULATION OF ESCROW ACCOUNTS CHAIRMAN MACKIE announced HB 13 to be up for consideration. REPRESENTATIVE ROKEBERG, sponsor of HB 13, said this bill is simple, but it is needed to protect consumers. It requires that good funds be in the hands of the title company prior to recording of the title in a residential real estate transaction. Typically, title companies record first and then get the money. This bill is driven by the lending institutions which force the title companies to record first, because they don't want to release funds on certifiably recorded title. He noted that Ms. Ann Ringstad was a victim of this circumstance and that the incidence is raising. REPRESENTATIVE ROKEBERG said HB 13 was supported by the Alaska Escrow Association which has already changed their policy in April to do this. MS. ANN RINGSTAD related how this applied to the sale of their home in Anchorage four years ago when a couple bought their house, but stopped the funds from transferring when they thought the house was flooding. This happened after the title company had been assured by the bank that the funds were coming. So the Ringstads had no house, but were still liable for the mortgage; the deed was recorded into the buyer's name. If the title company would have waited until they received the funds, there would have been no problem. It took them about four months to get the house back and were told it would take them about two years if they wanted to go to court (and they would probably win, but it would cost $30,000). Number 284 SENATOR LEMAN moved to report HB 13 from committee with individual recommendations. There were no objections and it was so ordered.
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