WY Underwriting Summary

Search/Exam

• No state law minimum period of time for a search.
• Under Wy. Stat. §34-10-103, the Marketable Record Title Act operates when the root of title is at least 40 years old.
• No title insurance within the state may be issued unless based upon adequate evidence of the current condition of title, certified in writing, as of the date of the policy by either (1) an authorized abstractor with a complete set of abstract records of title of all real estate in the county or (2) an attorney authorized to practice in Wyoming provides an opinion as to the condition of the title following a review of the pertinent title records or abstracts. See Wy. Stat. §26-23-308 and §33-2-101.
• Surveys: Wyoming does not have a requirement for a survey as a condition for insurance. The WFG underwriting policy is:
  • Residential Lender's policies WFG does not require it. May want to require it for locations further outside the city limits.
  • Commercial expects a survey.
  • Condos don’t require a survey typically (because of the as-built survey).
  • Agricultural it depends.
  • Loan Owners Policy prefers a survey.
• Extended – Expanded Coverage policies are not common in WY.

UPL

• Title insurer or agent has statutory authority to engage in the escrow, settlement or closing business. Wyo. Stat. §26-23-314.
• Title insurance companies authorized to do business in the State of Wyoming and their licensed agents are authorized to prepare documents required for title or closing which would otherwise constitute the practice of law in connection with issuing title insurance.
  • Must use standardized forms prepared by a WY Lawyer
  • Insurer and agent may NOT release or affect judgment liens
  • May not interpret documents or give advice about “rights and obligations”
  • May prepare other documents at the request of a WY Lawyer
• Summary distinguishing UPL conduct in WY: Wyo. R. State Bar, Att’y Cond. & Prac. 7.
  • “Practice law” does not include title insurance companies and their licensed agents preparing documents if (a) the transaction is arising out of the lawful course of business for the title insurance company issuing title insurance (b) in closing a real estate sale, title agents can only prepare closing statements which do not affect judgment liens (c) documents should be on standardized forms prepared by a licensed WY Lawyer. (d) no advice should be given regarding the document or party obligations.
  • Title insurance companies in WY and their agents may prepare other documents at the request if a WY lawyer if WY lawyer takes personal responsibility.

Vesting

• Wyoming recognizes tenancy in common, joint tenancy, and tenancy by entirety. Tenancy by entirety assumed if married couple absent statement to the contrary or of a different tenancy. A tenancy by entirety is automatically created when ownership is granted to two or more persons unless joint tenants with right of survivorship is expressly created.
• Joint tenancy has a presumption against it. Without the express provision for a joint tenancy, a tenancy in common is presumed. Choman v. Epperley, 592 P. 2d 714, 718 (Wyo. 1979).
• Joint tenancy may be established by the owner by designating in the instrument of conveyance or transfer, the names of such joint tenants including his own, without the necessity of any transfer or conveyance to or through a third person.
• Judgment lien attaches:
  • For judgments before 1999, the first day of the term at which judgment is rendered.
  • For judgments after 1999, from recording of the judgment with the County Clerk.

Property Tax

• Fifty percent(50%) of real estate taxes are due on and after September 1 and payable on November 10 in each year. The remaining 50% is due on and after March 1 and payable on and after May 10 of the following calendar year. Wyo. Stat. Ann. § 39-13-107(b)(i)(D).
• The holder of a tax deed takes the title of the taxpayer and receives at least constructive possession of the land.
• The tax deed obliterates all prior encumbrances
• Tax deeds present hazardous risk when insuring conveyance out of tax deed grantee to a BFP; underwriting review and approval required

Mortgage/Transfer Tax

• No Mortgage tax in Wyoming
• No transfer tax in Wyoming

Spousal Joinder Requirements/Homestead

• A spouse not in title must join in the conveyance/mortgage of homestead property. See Wyo. Stat. §34-2-121.
• SPECIAL LANGUAGE REQUIRED: Every owner or occupant of a homestead may voluntarily sell, mortgage, or otherwise dispose of or encumber the homestead if (1) the document contains the following language to release the homestead, “hereby releasing and waiving all rights under and by virtue of the homestead exemption laws of this state” and (2) is signed by the owner and any spouse of the owner of the homestead. See Wy. Stat. §34-2-121.

Power of Attorney

• Adopted the Uniform Power of Attorney Act, effective January 1, 2018
• POA presumed durable unless otherwise stated if executed after January 1, 2018. Wy. Stat §3-9-101 - 123
  • If the POA was executed in WY before January 1, 2018, it is valid if its execution complied with the law of this state as it existed at the time of execution. Wy. Stat §3-9-106.
• POA signature presumed genuine if acknowledged Wy. Stat §3-9-105.
• Express duty of loyalty and to not create a conflict of interest, except as otherwise provided in POA. Wy. Stat §3-9-114(b)
• POA executed in another state valid if execution complies with law of state that governs POA or Military execution per 10 USC 1044. Wy. Stat §3-9-106
• Statutory protection for persons relying in good faith on POA. Wy. Stat §3-9-119.
• Statutory liability for refusing to accept POA does not apply to a person “not otherwise required to engage in a transaction with the principal in the same circumstances.” Meaning title agents. Wy. Stat §3-9-120
• General authority with respect to real estate in POA has broad statutory definition of powers. Wy. Stat §3-9-204
• Statutory form available Wy. Stat §3-9-301

Construction Liens

• Mechanics/Construction lien must be filed within 120 (subcontractors, laborers, etc.) or 150 (original contractor) days of completion of work or filing of Notice of Substantial Completion. Action to foreclose must be filed within 180 days following filing of lien. Wy. Stat. 29-2-106 & 29-2-109
• Multiple notices needed. Good Summary linked here

Foreclosure Review

• Notice and Advertisement (non-judicial) is most common, but judicial is available if the lien does not include express Power of Sale. Mortgage is most common. Deeds of Trust are rare and effecting a termination/release of lien of Deed of Trust is often incorrectly performed

Instrument Requirements

• A Wyoming Statement of Consideration (PDF) disclosing the financial information of the transaction must accompany each deed.
• It's the buyer's responsibility to fully complete the Statement which is a confidential document used by the County Assessor to determine market value of all property in the county. Additional information on Statements of Considerations (PDF) is available. Documents must be clearly readable and reproducible.

Who May Serve As Trustee On Deed Of Trust

• Wyoming allows both Deed of Trust and Mortgage. Mortgages are by far most common and Deeds of Trust are almost unheard of.

Time Limitations

• US Judgment Liens 20 years, renewable for 20 years
• State Court Judgment Liens 5 years, renewable
• Federal Tax Liens 10 years (+30 days); can be refiled
• Estate Tax Lien Federal 10 years
• Mechanics/Construction lien must be filed within 120 (subcontractors, laborers, etc.) or 150 (original contractor) days of completion of work or filing Notice of Substantial Completion. Action to foreclose lien must be filed within 180 days after filing of lien. Wy. Stat. 29-2-106 & 29-2-109
  • Extensions can be agreed upon between parties, but cannot exceed twice the time within which the lien would have to be filed (i.e. 300 days contractor and 240 days all others). Wy. Stat. § 29-2-106.
• Financing Statements effective for 10 years (5 years if before July 1, 2013). Wy. Stat. § 34.1-9-515.
• Mortgages
  • Every mortgage of real estate, containing a power of sale upon default, may be foreclosed by advertisement within ten (10) years after the maturing of such mortgage or the debt secured thereby, or after the recording in the cases and manner below:
  • For mortgages executed after May 21, 1945, 10 years starts from date of the mortgage unless the maturity of obligation is specified clearly in mortgage provisions.
  • For mortgages executed before May 21, 1945, 10 years starts at the latest of the following options:
    • The tenth anniversary of the maturity of the debt or obligation secured by such mortgage if stated in the mortgage;
    • The tenth anniversary of the recording of the mortgage if no such maturity date is clearly stated in the mortgage;
    • The stated, renewed, or extended maturity date recorded on or before December 31, 1971, according to (B)(II) of Wy. Stat. § 34.4.102.

Odd Stuff

• Cancellation/Commitment fee is not prohibited in this state.
• A title insurer or title agent may reconvey a trust deed or release a mortgage regardless of whether the title insurer or title agent is named as a trustee. Wyo. Stat. § 34-1-146.
  • Preconditions:
  • The obligation must be fully paid by the title insurer/agent OR title insurer/agent possesses satisfactory evidence of the full payment of the obligation secured by a trust deed or mortgage.
  • Thirty (30) day writing period before recording a reconveyance or release and after mailing notice of intent. Wyo. Stat. § 34-1-146. Cannot reconvey if beneficiary sends a notice within that 30 days that the obligation has not been paid in full or the beneficiary objects. Wy. Stat. § 34-1-147.
  • Notice of intent to release or reconvey shall contain the name of the beneficiary or mortgagee and the servicer (if applicable), the name of the title insurer or title agent, the date and be substantially like the form in this statute. Wy. Stat § 34-1-146.

Probate

• Wyoming does not have a separate estate or inheritance or gift tax.
• If the property is held Tenancy by the entirety or as Joint Tenants (with or without "with right of survivorship") upon the first death, Wyoming expects the survivor to record an Affidavit of Survivorship (Wy. Stat. §2-9-102) in the county records.
• Ancillary Administration procedure is required when a nonresident's estate has property in Wyoming valued not exceeding two hundred thousand dollars ($200,000.00) Wy. Stat. §2-11-201
  • For nonresident estates valued at 200k or more, full administration proceedings take place. (See Law Review Secondary source pg. 387.)
• Intestate succession statute Wy. Stat. §2.4.101-108.
• Affidavits of heirship will be considered with underwriting approval.

Closing Protection Letters

• Closing Protection Letters