NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 13-1307
      
      
      BY REPRESENTATIVE(S) Kagan, Gardner, Buckner, Fields,
      Hullinghorst, Labuda, McLachlan;
      also SENATOR(S) Guzman, Aguilar.
      
      
      Concerning the effect of the inclusion of a legal description on
           the validity of documents affecting title to real property.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 38-35-122, add (3.5),
      (4), and (5) as follows:
      
           38-35-122.  Inclusion of street address and assessor information
      with legal description - inclusion of legal description - effect - validity
      of recording - interests in property - legislative declaration.
      (3.5)  Legislative declaration. (a)  The general assembly finds,
      determines, and declares that in In re Rivera, 2012 CO 43 (also
      referred to as Sender v. Cygan), the Colorado  supreme court held
      that a recorded deed of trust that completely omits a legal
      description is defectively recorded and cannot provide
      constructive notice to a subsequent purchaser of another party's
      security interest in the property.
      
           (b)  By enacting house bill 13-1307, enacted in 2013, it is the
      intent of the general assembly to clarify, for parties that
      currently have an interest in real property or that will acquire
      an interest in real property in the future, that, notwithstanding
      the holdings and conclusions in In re Rivera, the fact that a
      recorded document omits a legal description is not, by itself and
      without regard to the totality of the circumstances,
      determinative of whether the document:
      
           (I)  Is valid against any person obtaining rights in the real
      property; or
      
           (II)  Is valid or invalid.
      
           (4)  The fact that a document purporting to affect title to
      real property, whether recorded before or after the effective
      date of this section, does not contain or include a legal
      description of the real property may, in the totality of the
      circumstances, but does not necessarily:
      
           (a)  Render defective, invalid, or void the recording of the
      document in the office of the county clerk and recorder of the
      county where the real property is situated; or
      
           (b)  Determine whether the document is valid against a
      person obtaining rights in the real property.
      
           (5)  The fact that a document purporting to affect title to
      real property, whether executed before or after the effective
      date of this subsection (5), does not contain or include a legal
      description of the real property may, in the totality of the
      circumstances, but does not necessarily, determine whether the
      document is valid or invalid.
      
           SECTION 2.  Act subject to petition - effective date. This act
      takes effect at 12:01 a.m. on the day following the expiration of the
      ninety-day period after final adjournment of the general assembly (August
      7, 2013, if adjournment sine die is on May 8, 2013); except that, if a
      referendum petition is filed pursuant to section 1 (3) of article V of the state
      constitution against this act or an item, section, or part of this act within
      such period, then the act, item, section, or part will not take effect unless
      approved by the people at the general election to be held in November 2014
      and, in such case, will take effect on the date of the official declaration of
      the vote thereon by the governor.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                         John P. Morse
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO