City and County of Denver
Public Trustee
Releases: The Process Simplified
Presented by:
Sindee Wagner
Chief Deputy Public Trustee
720-865-2677 sindee.wagner@denvergov.org
Good Morning
• We are glad that you could make it.
• We hope this seminar is helpful to you in your
business.
• We are always available to answer additional
questions.
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Release Introduction
• Colorado is a Deed of Trust state.
• If the Public Trustee is named on the original Deed of
Trust, then the release must be processed through the
Public Trustee’s office.
• If the Public Trustee is not named on the original Deed
of Trust, or if the Deed of Trust secures an obligation
other than an evidence of debt, then the lien is
considered a Mortgage. You should consult legal
counsel about how mortgages are released.
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Release Instructions (cont’d)
• Releases of deeds of trust can only be released in the
county in which they are recorded.
• In the event that a deed of trust is recorded in a
different county than it should have been, the deed
of trust has to be re-recorded in the correct county
and then released in the correct county.
• In the event that a deed of trust is properly recorded
in multiple counties, separate releases of deeds of
trust must be completed and recorded in each
county where recorded.
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Did You Know?
• Bail Bonds constitute a lien against the
property and are accompanied by a note and
deed of trust.
• As long as the Public Trustee is listed on the
deed of trust, the deed of trust can be
released through the Public Trustee’s office
• Make sure that the note and deed of trust are
marked paid in full by the bail bond company.
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What is an evidence of debt?
CRS 38-38-100.3
(8) "Evidence of debt" is a document that
evidences a promise to pay or a right to the
payment of a monetary obligation, such as a
promissory note, bond, negotiable
instrument, a loan, credit, or similar
agreement, or a monetary judgment entered
by a court of competent jurisdiction.
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What is a Deed of Trust?
CRS 38-38-100.3
(7) "Deed of Trust" means a security
instrument containing a grant to a public
trustee together with a power of sale.
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What is “Holder of an evidence of
debt”?
CRS 38-38-100.3
(10) "Holder of an evidence of debt" means the person
in actual possession of or person entitled to enforce an
evidence of debt; except that "holder of an evidence
of debt" does not include a person acting as a nominee
solely for the purpose of holding the evidence of debt
or deed of trust as an electronic registry without any
authority to enforce the evidence of debt or deed of
trust. For the purposes of articles 37 to 40 of title 38,
CRS, the following persons are presumed to be the
holder of an evidence of debt:
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Holder of Evidence of Debt
(cont’d.)
(a) The person who is the obligee of and who is in possession of an
original evidence of debt;
(b) The person in possession of an original evidence of debt together
with the proper endorsement or assignment thereof to such person in
accordance with section 38-38-101 (6);
(c) The person in possession of a negotiable instrument evidencing a
debt, which has been duly negotiated to such person or to bearer or
indorsed in blank; or
(d) The person in possession of an evidence of debt with authority,
which may be granted by the original evidence of debt or deed of
trust, to enforce the evidence of debt as agent, nominee, or trustee or
in a similar capacity for the obligee of the evidence of debt.
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What is a Qualified Holder?
38-38-100.3 :
(20) "Qualified holder" means a holder of an evidence of debt, certificate of
purchase, certificate of redemption, or confirmation deed that is also one of
the following:
(a) A bank as defined in section 11-101-401 (5), C.R.S.;
(b) A federally chartered savings and loan association doing business in
Colorado or a savings and loan association chartered under the "Savings and
Loan Association Law," articles 40 to 46 of title 11, C.R.S.;
(c) A supervised lender as defined in section 5-1-301 (46), C.R.S., that is
licensed to make supervised loans pursuant to section 5-2-302, C.R.S., and
that is either:
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Qualified Holder
(cont’d)
(d) (I) A public entity, which is an entity that has issued voting securities that are listed on a
national security exchange registered under the federal "Securities Exchange Act of 1934",
as amended; or
(d)(II) An entity in which all of the outstanding voting securities are held, directly or
indirectly, by a public entity;
(e) An entity in which all of the outstanding voting securities are held, directly or indirectly,
by a public entity that also owns, directly or indirectly, all of the voting securities of a
supervised lender as defined in section 5-1-301 (46), C.R.S., that is licensed to make
supervised loans pursuant to section 5-2-302, C.R.S.;
(f) A federal housing administration approved mortgagee;
(g) A federally chartered credit union doing business in Colorado or a state-chartered credit
union as described in section 11-30-101, C.R.S.;
(h) An agency or department of the federal government;
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Qualified Holder
(cont’d)
(i) An entity created or sponsored by the federal or state government that
originates, insures, guarantees, or purchases loans or a person acting on behalf of
such an entity to enforce an evidence of debt or the deed of trust securing an
evidence of debt; or
(j) Any entity listed in paragraphs (a) to (i) of this subsection (20) acting in the
capacity of agent, nominee except as otherwise specified in subsection (10) of
this section, or trustee for another person.
What??
– Typically, a Bank or a Credit Union is a Qualified Holder, but
if you are neither, you should consult with legal counsel.
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What is the difference between a
Deed of Trust and a Note?
• A Deed of Trust signifies a lien against the
property.
– The Deed of Trust has information on the property
including the legal description. This document must be
recorded to be released.
• A Note is the document that identifies the
debt and various payment arrangements that
must be met to satisfy the lien.
– The note lists payment amounts, dates and interest to be
paid on the lien. This document is rarely recorded.
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What is a Release?
• A release of deed of Trust simply removes the
lien of the deed of trust from the property.
• A release of deed of trust is required anytime
that the lien is satisfied (Paid off)
• A release of deed of trust can happen when
– A property owner pays off the debt on the property in full
– A Re Finance happens
– A Bond is paid in full (bonds usually have a deed of trust
with them)
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Recording a release
• Releases must be recorded to take the deed of trust
lien off of the property.
• Releases can be processed in person at the Public
Trustee’s office
• By Mail in hard copy
• OR
• Electronically
– Electronically is the fastest and best way to record
a release.
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Why Electronic Processing?
• For several reasons
– The original documents never leave your office or
file cabinet.
– Time saver – Cost effective
– Quicker turnaround (usually within a day or two,
as opposed to two weeks by mail or manually)
– No mailing or driving to the office to complete the
transaction
– Tracking and automatic receipt of the recorded
release
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How do you E-Record?
• Contact any of these three companies for
more information of e-recording process/costs
–
Cost Contact Info CSC (Corporation Service Company)
•
–
eSecureFile (a Property Info company)
•
–
Contact CSC for pricing, using contact info at right.www.eRecording.com
855-200-1150 (toll-free)
Standard fee is $3.50 per document. However, a special pricing structure has been established for new customers filing
documents with Denver County:
2014: $2.50 per document
2015: $3.00 per document
2016: $3.50 per document
To qualify, you must say that you were referred by Denver County or that you saw this offer on Denver's
website!http://portal.propertyinfo.com/esecurefile
888-608-1808 (toll-free)
Simplifile
•
Annual fee $395 and $5 per document, or,
No annual fee and $10 per documentwww.Simplifile.com
800-460-5657 (toll-free)
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Two different release forms
(make sure you are using the correct form )
• Release of Deed of Trust WITH production of
evidence of debt (Requires original Note and
copy of the recorded Deed of Trust, always
used with private lenders)
• Release of Deed of Trust WITHOUT production
of evidence of debt (Requires a copy of the
recorded Deed of Trust, only for Qualified
Holders of the lien)
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What if there is no original note?
• Then the releasing party must get a lost
instrument bond from a surety company for
1 and ½ times the original loan amount.
• One surety company local in Colorado is
Rocky Mountain Surety
They can be reached at 303-670-9600 or
info@rockymountainsurety.com for terms
and fees associated with obtaining a lost
instrument bond.
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Copy of Recorded DOT OK
(only for qualified holders)
• Qualified holders need to supply the Public
Trustee’s office with a copy of the recorded
DOT being released along with the Release of
DOT form that states WITHOUT evidence of
debt.
• The release form indemnifies the Public
Trustee and assures that the releasing party
will defend the Public Trustee as required by
CRS 38-39-102 (3)(a)(1).
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Indemnification Defined
• Legal Dictionary describes Indemnification as:
Indemnify:
To compensate for loss or damage; to provide security for financial
reimbursement to an individual in case of a specified loss incurred by the
person.
Insurance companies indemnify their policyholders against damage
caused by such things as fire, theft, and flooding, which are specified
by the terms of the contract between the company and the insured.
To guarantee against any loss which another might suffer.
Two parties settle a dispute over a contract, and one of them may
agree to pay any claims which may arise from the contract, holding
the other harmless.
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Two types of Releases
• Partial Release: If the legal description on
the DOT lists separate parcels, plots, or lots
(Such as in the case of Condominiums or
Townhouses), and if only a portion of the
legal description is being released, then a
partial release is required.
• Full Release: If the legal description on the
DOT has been paid for in full, then a full
release is required.
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Release forms
Release forms can be found in our office
Online at www.denverclerkandrecorder.org
At Bradford Publishing in Denver, or perhaps a
local office supply store in your area.
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How to complete the forms
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Identical for both forms
(Please note the IMPORTANT box in red below)
IMPORTANT
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With Evidence of debt
(3rd section)
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Without Evidence of Debt
(3rd Section)
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Bottom section Identical
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Bottom of both forms
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Notary Required
• The signature of the releasing party,
regardless of the form being used, must be
notarized for execution and recording of the
release.
• If the form is not notarized, the form will be
rejected and returned to the submitter.
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Costs
• For processing and executing a release of
Deed of Trust is $15.00
• Recording of a one page release is $11.00
• An additional $5.00 is required for each
additional page included in the release
(Additional pages usually consist of the legal description of the property)
For a total of $26.00 for a one page release,
$31.00 for a two page release, $36.00 for a three
page release, etc…
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Release recorded in error
• In the event that a release of Deed of Trust is
submitted and recorded in error, the Public
Trustee cannot fix this error.
• The submitter will need to file a legal action
with District Court to get the situation
remedied.
• Funds submitted with recordings submitted in
error will not be refunded.
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Reasons for a release to be
rejected
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Reasons for rejected release
(cont’d)
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Reasons for rejected release
(cont’d)
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Reasons for rejected release
(cont’d)
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Reasons for rejected release (cont’d)
It is important to note that in the event that copies of the note and deed of trust
are sent in with the release, the copies will not be returned to you.
If an original note and deed of trust are sent in, please provide a self addressed,
stamped envelope large enough to accommodate both documents.
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We hope this was helpful
• Call with any questions, comments or
concerns at 720-865-2633.
• Thank you for your time and consideration
and have a good day.
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