Sec. 49-10b. Residential real estate transaction involving payoff of mortgage loan. Disclosure statement prepared and sent to mortgage holder by notification agent. Form.
Sec. 49-10b. Residential real estate transaction involving payoff of mortgage
loan. Disclosure statement prepared and sent to mortgage holder by notification
agent. Form. (a) For the purposes of this section:
(1) "Date of completion of the closing" means the date that payoff funds become
available for transmittal to the mortgage holder.
(2) "Notification agent" means: (A) The buyer's attorney, where the buyer is represented by an attorney and the seller is represented by a separate attorney who assumes
the responsibility for transmitting the mortgage payoff funds to the mortgage holder;
(B) the new lender, in a refinance situation where the attorney representing the mortgagor
is also the attorney representing the new lender; (C) the seller, where the seller is not
represented by an attorney and the attorney representing the buyer has taken the responsibility for transmitting the payoff funds to the mortgage holder; or (D) the seller's attorney, where the buyer is represented by a separate attorney who assumes the responsibility
for disbursing the mortgage payoff funds to the mortgage holder;
(3) "Mortgage holder" or "holder of the mortgage" means the owner of the mortgage
or the mortgage servicer as set forth in the mortgage payoff letter provided to the notification agent;
(4) "Residential real estate transaction" means any real estate transaction involving
a one-to-four family dwelling.
(b) At any residential real estate transaction involving the payoff of a mortgage
loan, a disclosure statement shall be prepared by the notification agent and shall be sent
by the notification agent by certified mail, return receipt requested or by confirmed
facsimile transmission or by overnight carrier, to the holder of the mortgage which is
to be paid off, within two business days from the date of completion of the closing.
The disclosure statement shall include a copy of the payoff statement or other written
authorization provided by the mortgage holder. The person or entity charged with the
responsibility of securing the mortgage payoff statement shall transmit a copy of such
payoff statement in a timely manner to the notification agent but, in any event, not later
than the date of closing. To the extent not shown on the payoff statement, the disclosure
statement shall identify the mortgage, the names of the mortgagors or borrowers, the loan
number, the property address and the date of completion of the closing. The disclosure
statement shall direct that, if funds are not received by the mortgage holder within five
business days from the date of completion of the closing, notice of that fact shall be
given to the notification agent. Such statement shall include the name, address, telephone
and fax number, if available, of the notification agent. Such disclosure statement may
be in substantially the following form:
NOTIFICATION
Please be advised that a loan from ..., (lender) to .... (mortgagor) dated .... and recorded in the land records in the town of .... in volume .... at page .... bearing loan number .... secured by a mortgage on .... (address), or as otherwise shown on the attached payoff statement, was paid at closing on .... (date of completion of the closing). If you do not receive the mortgage payoff funds within five business days of the date of completion of the closing, you are directed to notify this office immediately as follows:Notification agent's name ....
Address ....
Telephone number ....
Fax number ....
(P.A. 97-267, S. 2; P.A. 98-49.)
History: P.A. 98-49 amended Subsec. (a) by adding definition of "date of completion of the closing" and amended Subsec. (b) by deleting requirement that disclosure statement shall be executed by all parties or their attorneys, permitting disclosure statement to be sent by confirmed facsimile transmission, changing "mortgage lender" to "mortgage holder" and "pay off date" to "date of completion of the closing" (Revisor's note: Opening and closing parentheses were inserted editorially by the Revisors around the words "date of completion of the closing" in the notification form in Subsec. (b)).