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SENATE BILL NO. 23
INTRODUCED BY R. WEBB
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING CONDOMINIUM, TOWNHOME, AND TOWNHOUSE OWNERSHIP LAWS; PROVIDING THAT A TITLE INSURER INSURING A TOWNHOME OR TOWNHOUSE MAY NOT BE HELD LIABLE FOR CLAIMS ASSERTED BY A UNIT OWNER WHO OBJECTED TO A CONVERSION OF A CONDOMINIUM TO A TOWNHOUSE OR TOWNHOME UNDER CERTAIN CIRCUMSTANCES; PROVIDING THAT A TITLE INSURER MAY NOT BE HELD LIABLE FOR CLAIMS ASSERTED BY A LENDER WHO FAILS TO OBJECT AFTER WRITTEN NOTICE OF A CONVERSION FROM A CONDOMINIUM TO A TOWNHOME OR TOWNHOUSE; REQUIRING A CONDOMINIUM DECLARATION TO STATE THE PERCENTAGE OF OWNERS ALLOWED TO AMEND THE DECLARATION IF LESS THAN 100%; AMENDING SECTION 70-23-301, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND APPLICABILITY DATES."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Limitation on title insurer's liability. A title insurer providing title insurance as defined in 33-1-212 for a townhome or townhouse created from a converted condominium may not be held liable for claims asserted by:
(1) a unit owner who objected to the conversion on the basis that the conversion required the consent of a greater percentage of unit owners than required for approval of amendments under the original declaration as most recently amended and recorded before the conversion; or
(2) a lender, mortgage holder, or loan servicing company that fails to object to the conversion of a condominium to a townhome or townhouse within 45 days following receipt of a written notice of the conversion. The lender, mortgage holder, or loan servicing company may object only in writing to the sender of the notice of conversion.
Section 2. Section 70-23-301, MCA, is amended to read:
"70-23-301. Contents of declaration. A declaration must contain:
(1) a description of the land, whether leased or in fee simple, on which the building is located or is to be located;
(2) the name by which the property will be known and a general description of the building, including the number of stories and basements, the number of units, and the principal materials of which it is constructed;
(3) the unit designation, location, approximate area of each unit, and any other data necessary for proper identification;
(4) a description of the general common elements and the percentage of the interest of each unit owner in the common elements;
(5) a description of the limited common elements, if any, stating to which units their use is reserved and in what percentage;
(6) a statement of the use for which the building and each of the units is intended;
(7) the name of a person to receive service of process in the cases provided in 70-23-901 and the residence or place of business of the person, which must be within the county in which the property is located;
(8) an exhibit containing certification from the applicable local government that the condominiums, townhomes, or townhouses are either exempt from review under 76-3-203 or have been approved following review under Title 76, chapter 3, parts 5 and 6; and
(9) if less than 100%, the percentage of unit owners required to amend the declaration, except that the percentage of unit owners may not be less than 75%; and
(9)(10) any other details regarding the property that the person executing the declaration considers desirable."
NEW SECTION. Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 70, chapter 23, part 6, and the provisions of Title 70, chapter 23, part 6, apply to [section 1].
NEW SECTION. Section 4. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 5. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 6. Applicability. (1) [Section 1] applies to conversions of condominiums to townhomes or townhouses effective on or after [the effective date of this act].
(2) [Section 2] applies to declarations recorded on or after [the effective date of this act].
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