House panel recommends clarification to exclude HOA documents from "fraudulent deed" designation

The House Political Subdivisions Committee voted unanimously to recommend House Bill 108, "Fraudulent Deed Amendments," which clarifies that homeowners association governing documents (CC&Rs) and reinvestment fee covenants recorded after ownership are not fraudulent deeds.

Representative Walter, sponsor of HB 108, told the committee the measure is a follow-up to a bill passed last session that created an expedited process to restore property to rightful owners after a fraudulently filed deed. "Fraudulent deeds is HB 108 ... there are some individuals who have figured out how to file a fraudulent transfer of real property," Walter said, and added this bill "just clarifies that a governing... or reinvestment fee covenant that is recorded, is not a fraudulent deed."

Walter and staff said the change responds to concerns raised by the Land Title Association and the Community Association Institute that commonly recorded HOA documents — for example, amended CC&Rs — could be misread as property-transferring deeds if not explicitly excluded. No members of the public spoke on the bill during the committee hearing.

Representative Peterson moved to recommend HB 108 favorably. The committee took a voice vote; the motion carried unanimously. Committee members waived further summation after debate.

The measure was presented as a technical clarification and does not change the expedited-remedy process established by last session’s legislation; it narrows the scope so recorded HOA governing documents and reinvestment fee covenants are not treated as fraudulent deeds.