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Committee adopts amendment to land-records bill but holds measure for follow-up
Summary
Senate Bill 150, which updates recordation rules affecting clerks and indexing of instruments, had an amendment adopted but the committee decided to hold the bill to seek additional guidance on clerk discretion and liability concerns raised by title professionals.
Chair, Judicial Proceedings Committee, summarized Senate Bill 150 as a measure to update provisions relating to filing, maintenance and transmittal of land records and the recordation of instruments affecting real property. The chair advised the committee there was an amendment in the packet (Amendment 213324/1) and an interlineated copy showing proposed changes.
The amendment removes a provision that would have authorized a clerk to refuse to record an instrument that fails specified technical requirements and instead adds language that would bar a clerk from being held liable for recording an instrument that does not meet those technical specifications. Mr. Taylor, who had been cited as representing interested parties, was discussed by counsel as explaining that refusal to accept a document for recording could expose title companies, closing attorneys and title insurers to liability for failure or delay in recording.
Senator Henson asked why the amendment removed clerks’ discretionary authority to refuse to record; other members and the chair discussed whether the two concepts (allowing refusal while waiving liability) might coexist. Senator West and others said the Maryland Land Title Association had raised the liability concern and recommended the alternate language. After debate, the committee adopted the amendment on an open vote and then voted to hold SB 150 so committee counsel could seek further guidance about whether to retain clerk discretion to refuse to record while also addressing liability.
The committee did not advance SB 150 to a favorable report; the action recorded is adoption of the amendment and holding the bill pending additional information.
