DE S.B. 245 (2019) was signed into law by Gov. John Carney (D). The synopsis of the bill states the following (in relevant part):
“This Act amends the Real Estate Code to modernize the definition of purchase money mortgage under Delaware law to include lenders other than the seller of the mortgaged property who provide financing to purchase the property. Additionally, this Act extends the time period to record a purchase money mortgage from 5 days to 10 days and explicitly subordinates a mechanic’s lien under Chapter 27 of Title 25 to a purchase money mortgage.”
The bill also adds a new subsection (b) to Del. Code Ann. tit. 25, § 2108 which states the following:
“A mortgage that states that the mortgage is intended to constitute a purchase money mortgage creates a rebuttable presumption that the mortgage is a purchase money mortgage under this section.”
This bill took effect when it was signed (September 28, 2020).
We are currently reviewing this announcement to determine any impact, and evaluating any modifications, to our document library and/or systems. Any modifications we make as a result will be announced on our website (https://compliance.docutech.com/).