BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1974


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          Date of Hearing:   April 13, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          AB 1974  
          (Gallagher) - As Introduced February 16, 2016


          SUBJECT:  County recorder:  recordation of documents.


          SUMMARY:  Requires a document presented to a county recorder for  
          re-recording to be executed and acknowledged or verified as a  
          new document, and to contain a notation on its face specifying  
          the reason for the re-recording.  Specifically, this bill:  


          1)Requires each recorded instrument, paper, or notice that is  
            re-recorded to be executed and acknowledged or verified as a  
            new document, in addition to any previous acknowledgment or  
            verification, unless otherwise exempted under current law, as  
            specified, or if being presented solely to correct a recording  
            sequence.  The instrument, paper, or notice shall contain a  
            notation on its face specifying the reason for the  
            re-recording.


          2)Requires, if a specified real estate document recorded in the  
            official records of a county is 


          re-recorded, that document to be executed or acknowledged or  
            verified as a new document, in addition to any previous  
            acknowledgment or verification, unless otherwise exempted  








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            under current law, as specified, or if being presented solely  
            to correct a recording sequence.  The document shall contain a  
            notation on its face specifying the reason for the  
            re-recording.
          3)Provides that, if the Commission on State Mandates determines  
            that this act contains costs mandated by the state,  
            reimbursement to local agencies for those costs shall be made  
            pursuant to Part 7 (commencing with Section 17500) of Division  
            4 of Title 2 of the Government Code.


          EXISTING LAW:  


          1)Requires the county recorder, upon payment of proper fees and  
            taxes, to record any instrument, paper, or notice that is  
            authorized or required to be recorded, provided that the  
            instrument, paper, or notice meets certain standards. 



          2)Requires specified real estate documents authorized by law to  
            be recorded in the official records of a county to contain  
            specified information.



          FISCAL EFFECT:  This bill is keyed fiscal.


          COMMENTS:  


          1)Bill Summary.  This bill requires a document that is presented  
            to a county recorder for re-recording to be executed and  
            acknowledged or verified as a new document, and to contain a  
            notation on its face specifying the reason for the  
            re-recording.  This requirement does not apply if the document  
            is exempt from certain recording requirements under current  








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            law, or if it is being presented solely to correct a recording  
            sequence.  This bill is sponsored by the County Recorders  
            Association of California.



          2)Author's Statement.  According to the author, "Under current  
            law, there is no codified way to re-record documents in county  
            recorder offices.  This bill would set a standard procedure  
            for re-recording documents.  This bill will ensure records  
            remain accurate when being re-recorded and will help in  
            keeping local government efficient."



          3)Background.  County recorders are responsible generally for  
            examining and recording all documents that deal with  
            establishing ownership of land in counties.  This includes the  
            recording of title documents, notes, and home loan payoffs by  
            homeowners, title companies, mortgage companies and government  
            agencies involved in real estate transactions.  



            Documents such as deeds, loan documents, easements, power of  
            attorney, liens, and other documents which affect title to or  
            possession of real property need to be rerecorded when there  
            is an error in a previously recorded document or there needs  
            to be a change in name or other details.  There is no formal  
            procedure to rerecord documents in statute.  According to the  
            County Recorders Association of California, sponsor of this  
            measure, county recorders each have their own procedure, which  
            creates uncertainty over the accuracy and correct procedure  
            for re-recording.  



          4)State Mandate.  This bill is keyed a state mandate, which  
            means the state could be required to reimburse local agencies  








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            and school districts for implementing the bill's provisions if  
            the Commission on State Mandates determines that the bill  
            contains costs mandated by the state.  



          5)Arguments in Support.  The County Recorders Association of  
            California, sponsor of this measure, writes, "AB 1974 would  
            create a formal procedure for re-recording documents.  This  
            will end consumer confusion when fixing errors in previously  
            recorded documents."



          6)Arguments in Opposition.  None on file.



          REGISTERED SUPPORT / OPPOSITION:




          Support


          County Recorders Association of California [SPONSOR]




          Opposition


          None on file












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          Analysis Prepared by:Angela Mapp / L. GOV. / (916) 319-3958