BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2326|
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CONSENT
Bill No: AB 2326
Author: Wagner (R)
Amended: As introduced
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 6/26/12
AYES: Evans, Harman, Corbett, Leno
NO VOTE RECORDED: Blakeslee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/3/12 - See last page for vote
SUBJECT : Execution of documents
SOURCE : California Escrow Association
DIGEST : This bill expands the type of notarized
documents that require a party signing a document to place
his or her fingerprint in the notarys journal to include
all documents pertaining to real property.
ANALYSIS : Existing law provides that before certain
documents can be recorded, the execution of those documents
must be acknowledged by the person executing them and the
acknowledgment certified as prescribed by law, except as
specified. The execution of these instruments can be
proved by a subscribing witness, as specified, except for
any power of attorney, quitclaim deed, grant deed other
than a trustee's deed or deed of reconveyance, mortgage,
CONTINUED
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deed of trust, or security agreement.
This bill adds documents affecting real property to the
list of documents whose execution cannot be proved by a
subscribing witness, except as specified.
Existing law prohibits a proof of execution, by use of a
"subscribing witness," of any of several types of specified
documents, including a power of attorney, grant deed,
mortgage, deed of trust, quitclaim deed, or security
agreement as it relates to the recording of transfers of
property.
This bill additionally prohibits a proof of execution by a
subscribing witness of any instrument affecting real
property, as specified.
Existing law requires a notary public to keep one active
sequential journal at a time, of all official acts
performed as a notary public.
Existing law provides that if the document to be notarized
is a deed, quitclaim deed, deed of trust affecting real
property, or a power of attorney document, the notary
public shall require the party signing the document to
place his or her right thumbprint in the journal.
This bill expands the above requirement by additionally
providing that a notary public must require a party signing
documents affecting real property to place his or her
thumbprint in the journal.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/7/12)
California Escrow Association (source)
National Notary Association
California Title Association
ARGUMENTS IN SUPPORT : According to the author:
This bill seeks more consistency in the notarization
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of documents; to (1) expand the category of documents
for which the subscribing witness notary procedure
would be prohibited, and to (2) expand the category of
documents for which the notary must obtain a
thumbprint in the notary from the signer.
A "subscribing witness" is a person who witnesses the
signing of a document and appears before a notary
public on behalf of the principal signer to attest
that the principal signer has signed the document.
Although current law prevents the use of a subscribing
witness as proof of signing on powers of attorney and
specific real property documents (e.g., grant deed,
quitclaim deed, deed of trust, mortgage, or security
agreement; trustee's deeds and deeds of reconveyance
are specifically excluded from the requirement, an
exclusion this bill intends to remain), a subscribing
witness can currently be used when notarizing other
real estate documents (e.g., easement deed, memorandum
of lease, assignment of deed of trust, assignment of
rents, and all other real estate-related documents
except trustee's deeds and deeds of reconveyance) that
could be later used to fraudulently sign multiple real
property documents.
The California Escrow Association (CEA), in support,
asserts that "AB 2326 seeks to prohibit the use of the
subscribing witness for all real estate documents
(including but not limited to an assignment of a deed of
trust, substitution of trustee, declaration of homestead,
memorandum of lease, etc.), while preserving the current
exception for a trustee's deed or deed of reconveyance."
CEA contends that "Ýf]urther limiting the use of the
subscribing witness will create an additional barrier to
real estate fraud and elder financial abuse."
ASSEMBLY FLOOR : 72-0, 5/3/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
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4
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman,
Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma,
Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
Pérez, Portantino, Silva, Skinner, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Yamada, John A.
Pérez
NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger
Hernández, Jones, Smyth, Williams
RJG:n 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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