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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | February 12, 2013 09:52 AM |
|---|---|
| From: | Representative Sandra Major |
| To: | All House members |
| Subject: | PRODA Legislation |
| In the near future, I plan to introduce legislation that would amend the law relating to the recording and indexing of documents presented to recorders of deeds for filing. This legislation is intended to address the recording of blanket lease assignments, mortgage assignments, and to provide standards for recording documents. In recent years there has been a marked increase in documents submitted for recording due to an increase in oil and gas-related activities. Currently, as a result of a recent Commonwealth Court case, a recorder of deeds may not refuse to record multiple lease assignments even though such assignments are not in a format that allows for proper indexing by the recorder since only the assignor and assignee are considered parties for purposes of indexing. Thus, the property owner’s (the lessor’s) name is not indexed as the property owner is neither the assignee nor assignor in the assignment. This legislation is designed to address this issue by clarifying who a party is and by providing that the property location shall be included in the document. Also, this legislation is intended to clarify that mortgage assignments must also be recorded. In recent years, when Mortgage Electronic Registration System (MERS) is listed in the mortgage instrument as the mortgagee (as nominee for the lender and its successors and assigns), no further recordation occurs when the mortgage is assigned unless a non-MERS member acquires the accompanying note. Some bankers have been unclear as to whether a mortgage assignment is considered a conveyance of an interest in land. This legislation is designed to provide that clarification. |
Introduced as HB942