BILL NUMBER: SB 310 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 21, 2013
INTRODUCED BY Senator Calderon
FEBRUARY 15, 2013
An act to amend Section 910 of the Civil Code, relating
to litigation. An act to add Section 2924.26 to, and
to add and repeal Section 2924.25 of, the Civil Code, relating to
mortgages.
LEGISLATIVE COUNSEL'S DIGEST
SB 310, as amended, Calderon. Prelitigation procedures:
construction claims. Mortgages: foreclosure notices:
title companies.
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.
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.
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.
This bill would make technical, nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2924.25 is added to the
Civil Code , to read:
2924.25. (a) A licensed title company or underwritten title
company shall not be liable for a violation of Sections 2923.5,
2923.55, 2923.6, 2924.11, 2924.18, and 2924.19 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.
(b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 2. Section 2924.26 is added to the
Civil Code , to read:
2924.26. (a) A licensed title company or underwritten title
company shall not be liable for a violation of Sections 2923.5 and
2924.11 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.
(b) This section shall become operative on January 1, 2018.
SECTION 1. Section 910 of the Civil Code is
amended to read:
910. Prior to filing an action against any party alleged to have
contributed to a violation of the standards set forth in Chapter 2
(commencing with Section 896), the claimant shall initiate the
following prelitigation procedures:
(a) The claimant or his or her legal representative shall provide
written notice via certified mail, overnight mail, or personal
delivery to the builder, in the manner prescribed in this section, of
the claimant's claim that the construction of his or her residence
violates any of the standards set forth in Chapter 2 (commencing with
Section 896).
(1) The written notice shall provide the claimant's name, address,
and preferred method of contact, and shall state that the claimant
alleges a violation pursuant to this part against the builder, and
shall describe the claim in reasonable detail sufficient to determine
the nature and location, to the extent known, of the claimed
violation.
(2) In the case of a group of homeowners or an association, the
notice may identify the claimants solely by address or other
description sufficient to apprise the builder of the locations of the
subject residences. That document shall have the same force and
effect as a notice of commencement of a legal proceeding.
(b) The notice requirements of this section do not preclude a
homeowner from seeking redress through any applicable normal customer
service procedure as set forth in any contractual, warranty, or
other builder-generated document; and, if a homeowner seeks to do so,
that request shall not satisfy the notice requirements of this
section.