§ 35-03-19 — Certificate of release - Contents - Execution - Recordation

North Dakota § 35-03-19

• Jurisdiction: North Dakota
• Title 35: Liens
• Ch. 35-03: Mortgage of Real Property

Text

1. As used in this section, unless the context otherwise requires:
a. "Mortgage" means a mortgage or mortgage lien covering an interest in real
property in this state given to secure a loan in the original principal amount of five
hundred thousand dollars or less.
b. "Mortgage servicer" means the last person to whom a mortgagor or the
mortgagor's successor in interest has been instructed by a mortgagee to send
payments on a loan secured by a mortgage. A person transmitting a payoff
statement is the mortgage servicer for the mortgage described in the payment
statement.
c. "Mortgagee" means the grantee of a mortgage or if a mortgage has been
assigned of record, the last person to whom the mortgage has been assigned of
record.
d. "Mortgagor" means the grantor of a mortgage.
e. "Payoff statement" means a statement of the amount of the unpaid balance of a
loan secured by a mortgage, including principal, interest, and any other charges
properly due under or secured by the mortgage and interest on a per day basis
for the unpaid balance.
f. "Record" means to record with the recorder.
g. "Title insurance company" means a corporation or other business entity
authorized and licensed to transact the business of insuring titles to interests in
real property in this state in accordance with chapter 26.1-20.
2. An officer or duly appointed agent of a title insurance company may execute, on behalf
of a mortgagor or a person who acquired from the mortgagor title to all or a part of the

property described in a mortgage, a certificate of release that complies with the
requirements of this section and record the certificate of release in the real property
records of each county in which the mortgage is recorded if a satisfaction or release of
the mortgage has not been executed and recorded after the date payment in full of the
loan secured by the mortgage was sent in accordance with a payoff statement
furnished by the mortgagee or the mortgage servicer.
3. A certificate of release executed under this section must contain substantially all of the
following:
a. The name of the mortgagor, the name of the original mortgagee, and, if
applicable, the mortgage servicer, the date of the mortgage, the date of recording,
and volume and page or document number in the real property records where the
mortgage is recorded, together with similar information for the last recorded
assignment of the mortgage;
b. A statement that the mortgage was in the original principal amount of five
hundred thousand dollars or less;
c. A statement that the person executing the certificate of release is an officer or a
duly appointed agent of a title insurance company authorized and licensed to
transact the business of insuring titles to interests in real property in this state;
d. A statement that the certificate of release is made on behalf of the mortgagor or a
person who acquired title from the mortgagor to all or a part of the property
described in the mortgage;
e. A statement that the mortgagee or mortgage servicer provided a payoff statement
which was used to make payment in full of the unpaid balance of the loan
secured by the mortgage; and
f. A statement that payment in full of the unpaid balance of the loan secured by the
mortgage was made in accordance with the written or verbal payoff statement.
4. A certificate of release authorized by this section must be executed and acknowledged
as required by law in the case of a deed and may be executed by a duly appointed
agent of a title insurance company. The delegation to an agent by a title insurance
company does not relieve the title insurance company of any liability for damages
caused by its agent for the wrongful or erroneous execution of a certificate of release.
The appointment of agent must be executed and acknowledged as required by law in
the case of a deed and must state the title insurance company as the grantor, the
identity of the person authorized to act as agent to execute and record certificates of
release provided for in this section on behalf of the title insurance company, that the
agent has the full authority to execute and record certificates of release provided for in
this section on behalf of the title insurance company, the term of appointment of the
agent, and that the agent has consented to and accepts the terms of the appointment.
A single appointment of agent may be recorded in each county in each recorder's
office. A separate appointment of agent may not be necessary for each certificate of
release. The appointment of agent may be rerecorded when necessary to establish
authority of the agent. The authority continues until a revocation of appointment is
recorded with the recorder where the appointment of agent was recorded.
5. For purposes of releasing the mortgage, a certificate of release containing the
information and statements provided for in this section and executed as provided in
this section is prima facie evidence of the facts contained in the certificate, is entitled
to be recorded with the recorder, and operates as a release of the mortgage described
in the certificate. The recorder shall rely upon the certificate to release the mortgage.
Recording of a wrongful or erroneous certificate of release by a title insurance
company or its agent does not relieve the mortgagor, or the mortgagor's successors or
assigns, from any personal liability on the loan or other obligations secured by the
mortgage. In addition to any other remedy provided by law, a title insurance company
wrongfully or erroneously recording a certificate of release under this section is liable
to the mortgagee for actual damage sustained due to the recording of the certificate of
release.

6. If a mortgage is recorded in more than one county and a certificate of release is
recorded in one of them, a certified copy of the certificate of release may be recorded
in another county with the same effect as the original. In all cases, the certificate of
release shall be entered and indexed as satisfactions of mortgage are entered and
indexed.