BILL ANALYSIS
AB 2618
Page 1
Date of Hearing: April 14, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 2618 (Nestande) - As Amended: March 25, 2010
SUBJECT : Local government: county recorder.
SUMMARY : Allows the board of supervisors of every county to
adopt a resolution authorizing the county recorder to notify a
party of the execution of an instrument affecting their interest
in real property, when the deed does not involve a governmental
entity, within 30 days of the resolution and in a form as
specified.
EXISTING LAW :
1)Allows the board of supervisors of the Counties of Los Angeles
and Riverside to adopt a resolution authorizing the county
recorder to notify a party of the execution of an instrument
affecting their interest in real property, when the deed does
not involve a governmental entity, within 30 days of the
resolution and in a form as specified.
2)Allows the recorder of the County of Los Angeles to collect a
fee, not to exceed the cost
of mailing the notice or $7, from the party filing a deed,
quitclaim deed, or deed of trust, other than a governmental
entity.
FISCAL EFFECT : None
COMMENTS :
1)In the early 1990's the Los Angeles District Attorney reported
that approximately 1,151
Los Angeles County residents (mostly elderly, poor, and
uneducated people) were cheated out of an estimated $131
million due to real estate fraud. In response, an anti-fraud
pilot program was established in the County of Los Angeles.
Under that program, the County
of Los Angeles sent a postcard notice to signatories of deeds to
real property as an alert to property owners when an
instrument affecting their interest had been recorded. Due to
the success of the program, the Legislature passed SB 1631
AB 2618
Page 2
(Watson), Chapter 177, Statutes of 1996, which authorized the
board of supervisors of the County of Los Angeles to adopt a
resolution permitting the county recorder to notify a party of
the execution of an instrument affecting their interest in
real property and allowed the recorder of the County of Los
Angeles to charge a fee to cover mailing costs not to exceed
$7.
2)In response to the County of Riverside's growth of real estate
fraud, the Riverside County District Attorney's Office
sponsored SB 1287 (Hollingsworth), Chapter 117, Statutes of
2008, which gave the board of supervisors of the County of
Riverside authority identical to that provided to the County
of Los Angeles without the authorization to charge a fee to
cover mailing costs.
3)The sponsor, County Recorders' Association of California, says
AB 2618 is necessary to equip all counties with a tool that
will help enable individuals to fight real estate fraud. They
point to horror stories of homeowners having their properties
unknowingly sold out from under them. The sponsor says AB
2618 will allow Californians to better protect themselves and
seek help once they gain knowledge of recordations affecting
their property.
4)Support Arguments . Supporters say AB 2618 will help to
prevent Californians from having their homes illegally sold
out from under them by alerting property owners of record of
change in recordation.
5)Opposition Arguments . Opposition might say district attorneys
offices have the authority to combat consumer and real estate
fraud already and this extra layer of bureaucracy is
unnecessary and duplicative. The Committee also may wish to
consider whether giving counties the ability to utilize the
notification requirement without providing a funding stream is
prudent.
REGISTERED SUPPORT / OPPOSITION :
Support
County Recorders' Association of CA [SPONSOR]
CA District Attorneys Association
AB 2618
Page 3
Opposition
None on file
Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916)
319-3958