BILL ANALYSIS Ó
AB 1974
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1974 (Gallagher) - As Introduced February 16, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY: This bill creates a standardized statewide procedure to
re-record documents in county recorder offices. Specifically,
this bill 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.
AB 1974
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FISCAL EFFECT:
Negligible costs to county recorders. The County Recorders
Association of California estimates about nine million documents
are recorded statewide each year and approximately 3,000 to
4,000 of those are re-recorded documents (less than 0.04%).
Although potentially a reimbursable state mandate, it is
unlikely the costs would reach the level required to trigger a
claim.
COMMENTS:
1)Purpose. 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."
2)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
AB 1974
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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.
Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081