Amended in Senate March 21, 2013

Senate BillNo. 310


Introduced by Senator Calderon

February 15, 2013


begin deleteAn act to amend Section 910 of the Civil Code, relating to litigation. end deletebegin insertAn act to add Section 2924.26 to, and to add and repeal Section 2924.25 of, the Civil Code, relating to mortgages.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 310, as amended, Calderon. begin deletePrelitigation procedures: construction claims. end deletebegin insertMortgages: foreclosure notices: title companies.end insert

begin insert

Existing law requires a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent to, among other things, contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law, until January 1, 2018, prohibits a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default if a foreclosure prevention alternative is approved in writing prior to the recordation of a notice of default under certain circumstances. Existing law, operative January 1, 2018, prohibits a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent from recording a notice of sale or conducting a trustee’s sale while a foreclosure prevention alternative application submitted by the borrower is pending, as specified. Existing law, until January 1, 2018, prohibits a mortgage servicer, trustee, mortgagee, beneficiary, or authorized agent from recording a notice of default, notice of sale, or conducting a trustee’s sale while a complete first lien loan modification application submitted by the borrower is pending, as specified. Existing law, until January 1, 2018, authorizes a borrower to bring an action for injunctive relief to enjoin a material violation of certain of these provisions if a trustee’s deed of sale has not been recorded.

end insert
begin insert

This bill would exempt a licensed title company or underwritten title company from liability for a violation of those provisions if it records or causes to record a notice of default or notice of sale at the request of a trustee, substitute trustee, or beneficiary, in good faith and in the normal course of its business activities.

end insert
begin delete

Existing law requires a claimant to file a written notice, as specified, with the party alleged to have contributed to a construction defect before initiating litigation against the party for construction defect claims regarding the claimant’s residence.

end delete
begin delete

This bill would make technical, nonsubstantive changes to these provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 2924.25 is added to the end insertbegin insertCivil Codeend insertbegin insert, to
2read:end insert

begin insert
3

begin insert2924.25.end insert  

(a) A licensed title company or underwritten title
4company shall not be liable for a violation of Sections 2923.5,
52923.55, 2923.6, 2924.11, 2924.18, and 2924.19 if it records or
6causes to record a notice of default or notice of sale at the request
7of a trustee, substitute trustee, or beneficiary, in good faith and in
8the normal course of its business activities.

9(b) This section shall remain in effect only until January 1, 2018,
10and as of that date is repealed, unless a later enacted statute, that
11is enacted before January 1, 2018, deletes or extends that date.

end insert
12begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 2924.26 is added to the end insertbegin insertCivil Codeend insertbegin insert, to read:end insert

begin insert
13

begin insert2924.26.end insert  

(a) A licensed title company or underwritten title
14company shall not be liable for a violation of Sections 2923.5 and
152924.11 if it records or causes to record a notice of default or
16notice of sale at the request of a trustee, substitute trustee, or
17beneficiary, in good faith and in the normal course of its business
18activities.

19(b) This section shall become operative on January 1, 2018.

end insert
begin delete
20

SECTION 1.  

Section 910 of the Civil Code is amended to read:

21

910.  

Prior to filing an action against any party alleged to have
22contributed to a violation of the standards set forth in Chapter 2
P3    1(commencing with Section 896), the claimant shall initiate the
2following prelitigation procedures:

3(a) The claimant or his or her legal representative shall provide
4written notice via certified mail, overnight mail, or personal
5delivery to the builder, in the manner prescribed in this section, of
6the claimant’s claim that the construction of his or her residence
7violates any of the standards set forth in Chapter 2 (commencing
8with Section 896).

9(1) The written notice shall provide the claimant’s name,
10address, and preferred method of contact, and shall state that the
11 claimant alleges a violation pursuant to this part against the builder,
12and shall describe the claim in reasonable detail sufficient to
13determine the nature and location, to the extent known, of the
14claimed violation.

15(2) In the case of a group of homeowners or an association, the
16notice may identify the claimants solely by address or other
17description sufficient to apprise the builder of the locations of the
18subject residences. That document shall have the same force and
19effect as a notice of commencement of a legal proceeding.

20(b) The notice requirements of this section do not preclude a
21homeowner from seeking redress through any applicable normal
22customer service procedure as set forth in any contractual,
23warranty, or other builder-generated document; and, if a
24homeowner seeks to do so, that request shall not satisfy the notice
25requirements of this section.

end delete


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