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Commission forwards proposed lienholder-consent language to county council to speed stalled plats

Eastern Summit County Planning Commission · August 17, 2023
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Summary

The commission unanimously recommended county council consider draft code language allowing the county to certify lienholder notification by certified mail and proceed if lienholders do not respond, aimed at preventing long delays when lienholders cannot be located.

Staff from the county attorney's office presented draft code language intended to address rare cases in which applicants cannot obtain lienholder consent needed to record subdivisions or plat amendments. The proposed process would require the applicant to provide a list of known lienholders, the county would send certified notice and a notice in the paper, and if no response is received within the prescribed period the county would treat consent as given for recording purposes.

A staff attorney explained this is not a state-required consent but a county code mechanism intended to help stalled plats move forward. "In a few cases we've run into some issues where property owners have not been able to obtain consent from lienholders... this will give them a way to move forward," the attorney said, describing lawyers' vetting of the language and noting the county expects to use the provision rarely.

Commissioners raised practical concerns about a mortgage holder's security, the difference between mechanic's liens and mortgage liens, and whether county recorders will accept documents absent lienholder signatures. Staff said the process is for cases where lienholders cannot be located and that the county recorder will record the documents; staff also said the attorney's office will monitor and return with amendments if unexpected problems arise in practice.

After a brief public hearing with no speakers, a commissioner moved and the commission voted unanimously to forward a positive recommendation to the county council for the proposed code language.

Next steps: the draft language will go to county council for consideration; staff said they will monitor initial usage and return with amendments if needed.