House Bill 937 Summary

• Enacts the Notice of Settlement Act (Chapter 47I) to modernize real property transfer law by allowing advance notice of transactions and facilitating electronic closing, recording, and fund disbursement.

• Permits a notice agent (attorney or mortgagee) to register a Notice of Settlement in the register of deeds office for anticipated settlements occurring within 60 days, establishing priority for the grantee or mortgagee from the time of registration.

• Notice of Settlement is optional and does not create liability if unused; failure to use it is not grounds for legal claims unless expressly required by contract.

• Establishes priority protections for grantees and mortgagees registered under a Notice of Settlement against subsequent purchasers and lien creditors, subject to exceptions for mechanics' liens and pre-registered conveyances discovered at least five business days before settlement.

• Makes technical corrections to existing real property law regarding document registration and draftsman designation requirements; effective January 1, 2020 for notices of settlement and immediately upon enactment for other provisions.