Substitute House Bill No. 7064 seeks to amend the Validating Act by broadening the scope of validation for real property instruments. The bill removes the previous limitation that only instruments recorded after January 1, 1997, could be validated, allowing for the validation of any recorded deed, mortgage, lease, power of attorney, release, or assignment, regardless of when they were recorded. New provisions clarify the types of defects that can be overlooked, such as defective acknowledgments and incorrect execution dates, and establish a two-year period for challenging the validity of these instruments through a notice of lis pendens. Additionally, it addresses defects related to fiduciaries, ensuring that certain actions remain valid unless contested within specified timeframes.

The bill also emphasizes the importance of recording powers of attorney and ensuring fair market value in transactions. It specifies that defects related to fiduciaries and their conveyances are valid unless challenged within ten years, and it allows for validation even if a fiduciary fails to meet certain requirements, provided they have accounted for the proceeds appropriately. Overall, these changes aim to streamline the validation process for real property transactions and reduce legal uncertainties associated with conveyancing defects. The bill is set to take effect on July 1, 2025, and is not anticipated to have any fiscal impact on the state or municipalities.

Statutes affected:
Raised Bill: 47-36aa
JUD Joint Favorable Substitute: 47-36aa
File No. 748: 47-36aa