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
AB 1974
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Analysis Prepared by:Angela Mapp / L. GOV. / (916) 319-3958