Idaho Amends Trustee Definition
Effective July 1, 2016, the Idaho House of Representatives House Bill No. 503 amends Section 45-1502 of An Act Relating to Trust Deeds to revise the definition of “Trustee.” Idaho has expanded the definition of Trustee. The State of Idaho maintains the previous definition as a person who has received real property by way of a trust or deed, or that is the successor of interest. The amended version now includes a provision that once a trustee that has performed any obligation outlined in the deed of trust, the trustee will reconvey the property to the grantor upon written request. Should the trustee deny the written request he/she will liable for refusing to discharge the mortgage on real property. For the purpose of Section 45-1506 (2) (c) the trustee is not a party requiring the notice of sale.
Reconveyance is as included in the amended definition is as outlined in Section 45-1514:
“Upon performance of the obligation secured by the deed of trust, the trustee upon written request of the beneficiary shall reconvey the estate of real property described in the deed of trust to the grantor; providing that in the event of such performance and the refusal of any beneficiary to so request or the trustee to so reconvey, as above provided, such beneficiary or trustee shall be liable as provided by law in the case of refusal to execute a discharge or satisfaction of a mortgage on real property.”
Section 45-1502 also covers trustee compensation, which has not been changed with the recent amendment. The trustee shall be compensated reasonably for any services performed and reconveyance fees, so long as there are no provisions that prohibit the grantor from paying them. If there are no such restrictions against the grantor from having to pay for the reconveyance fees, the trustee is entitled to withhold the recovery of the deed until he/she is reimbursed for any monies used to pay for the recording costs or the recording of the reconveyance instruments.
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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