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Legislation Document
SPONSOR:
Sen. Mantzavinos & Rep. Bush
Sens. Hansen, Hoffner
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 316
AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE ATTORNEY SATISFACTION OF MORTGAGES AND OTHER RECORDED LIENS PAID BY A LICENSED DELAWARE ATTORNEY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 2120, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 2120. Authorization to satisfy
mortgage.
mortgage and other liens paid off by a licensed Delaware attorney.
(j)(1) For purposes of this subsection:
a. “Lien” includes a homeowner association or condominium lien, UCC financing statements, judgments, and any other monetary lien recorded with a recorder of deeds office.
b. “Lien” does not include a mortgage.
(2) If an attorney authorized to practice law in this State satisfies, partially releases, or releases a specific property that is part of a lien recorded with a recorder of deeds office, the attorney may use the procedure under subsection (a) of this section to satisfy a lien or the procedure under subsection (b) of this section to partially satisfy a lien.
(3) If an attorney authorized to practice law in this State uses either of the procedures authorized under paragraph (j)(2) of this section, the attorney shall use an affidavit that is substantially similar to the affidavit authorized under subsection (f) of this section, for a satisfaction of a lien, or subsection (g) of this section, for a partial release of a lien or release of a specific property that is part of a lien. The attorney may adjust the affidavit as necessary based on the type of lien satisfied or partially satisfied.
SYNOPSIS
Currently, if a licensed Delaware attorney pays off a mortgage in conjunction with a real-estate settlement and the lender fails to file a satisfaction piece within 60 days, the attorney may administratively satisfy that mortgage to clear the title record. Unfortunately, often other types of liens that are paid off remain unsatisfied and cloud title for the homeowner. This Act clarifies that a licensed Delaware attorney may also file an administrative satisfaction or partial release for any other type of lien that the Delaware attorney paid off.
Author: Senator Mantzavinos