Arkansas Amends Provisions Regarding Lien Release
By Zachary Pearlstein, J.D.
The state of Arkansas has recently updated its lien release regulations, effective immediately. The revisions allow for the release of a mortgage, deed of trust, or other lien, based on an affidavit by an attorney or a title agent that the lien has been satisfied.
Arkansas Code § 18-40-104 states that if a mortgagee receives full satisfaction for the balance of a mortgage, upon request of the mortgagor, the mortgagee shall acknowledge satisfaction on the margin of the record in which the mortgage is recorded. Once this acknowledgment has been made, the mortgage is released, all actions brought on the mortgage are barred, and title to the mortgaged property is vested in the mortgagor.
In the case of a deed of trust, the trustee shall reconvey the encumbered property to the party entitled to the property, upon written request of the beneficiary of the deed of trust, for a reasonable fee plus costs.
However, if the mortgagor requests the mortgagee to acknowledge satisfaction, or requests the trustee to reconvey the property, and the mortgagee fails to do so within 60 days of the request, the mortgagor may recover in a civil action an amount not to exceed the amount of the mortgage.
The revised regulation now states that if a mortgagee is requested to acknowledge satisfaction, or a trustee is requested to reconvey the property, and fails to do so within 60 days, then a “satisfaction affidavit” may be recorded in the same county as the lien. This affidavit has the same effect as an acknowledgement of satisfaction or a reconveyance of the property.
The regulation states that a satisfaction affidavit may be executed and recorded by a licensed attorney who prepares the original mortgage or deed of trust, a licensed attorney who represents the person making or having received satisfaction, or a licensed title agent employed by a title company that tendered the satisfaction on behalf of the person making satisfaction.
The affidavit may be acknowledged by and sworn before any person authorized to administer an oath under the laws of the state. The regulation also states that the document must conspicuously identify in its title that it is a “Satisfaction Affidavit,” and must contain certain information including: the names of all parties to the original instrument, recording information including the recording date of the original instrument, the date of payment and the amount paid to satisfy the indebtedness, and that more than 60 days have elapsed since the request for the acknowledgment of satisfaction.
Zachary Pearlstein, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Brandeis University and earned his Juris Doctor at Suffolk Law School. Zachary is admitted to the Bar in Massachusetts. He can be reached at Zachary@bankersadvisory.com
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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