SB 827, as amended, Liu. Local government: Los Angeles County: notice of recordation.
(1) Existing law authorizes, until January 1, 2015, the Los Angeles County Recorder, following the adoption of an authorizing resolution by the Los Angeles County Board of Supervisors, to mail a notice of recordation to a party executing a deed, quitclaim deed, or deed of trust within 30 days of the recording of one of those documents, and to mail a notice of default or notice of sale, as specified, to a party subject to a notice of default or notice of sale of property, including the occupants of that property, within 5 days, but in any event no more than 20 days, of recordation. Existing law requires the county, if the board adopts the authorizing resolution, to submit a report with prescribed information relating to the mailed notices to certain committees of the Legislature on or before January 1, 2014.
This bill
would insteadbegin insert authorize the recorder to mail a notice of default or notice of sale to a party subject to the notice no more than 14 days, rather than 20 days, after recordation. This bill would otherwiseend insert extend these authorizations until January 1, 2020. This bill wouldbegin insert require additional information to be included in the report and wouldend insert extend the deadlinebegin delete ofend deletebegin insert for submittingend insert thebegin delete reporting requirementend deletebegin insert reportend insert
to January 1, 2019.
(2) Existing law also authorizes, until January 1, 2015, the Los Angeles County Recorder to collect a fee from the party filing a deed, quitclaim deed, deed of trust, notice of default, or notice of sale, unless that party is a government entity. Existing law authorizes the recorder to use a portion of the collected fee to pay the actual cost of providing information, counseling, and assistance to a person who receives the notice. Existing law authorizes administrative costs incurred by the recorder to be included as a portion of the actual costs that comprise the fee, as specified. Existing law prohibits this fee from exceeding $7.
This bill would extend these authorizations and the prohibition until January 1, 2020.
(3) This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 27297.6 of the Government Code, as
2amended by Section 1 of Chapter 141 of the Statutes of 2011, is
3amended to read:
(a) (1) Following adoption of an authorizing
5resolution by the Los Angeles County Board of Supervisors, the
6Los Angeles County Recorder, or a designee or designees
7authorized by the board of supervisors, may notify one or more of
8the following by mail:
9(A) The party or parties executing a deed, quitclaim deed, or
10deed of trust, within 30 days of recordation.
11(B) The party or parties subject to a notice of default or notice
12of sale, including the occupants of that property, within 5 days,
13but in any event no more thanbegin delete 20end deletebegin insert
14end insert days, of recordation.
14(2) The recorder may require, as a condition of recording, that
15a deed, quitclaim deed, deed of trust, notice of default, or notice
16of sale indicate the assessor’s identification number or numbers
17that fully contain all, or a portion of, the real property described
18in the legal description. If the description contains more than one
19assessor’s parcel, all assessor’s parcels shall be indicated. The
P3 1form of the entry shall be substantially as follows: Assessor’s
2Identification Number __-__-__.
3(b) This section shall not apply to the recordation of any
4document where the federal government, or state, county, city, or
5any subdivision of the state acquires title.
6(c) The failure of the county recorder to provide the notice as
7permitted by this section shall not result in any liability against
8the recorder or the county. In the event that the notice is returned
9to the recorder by the postal service as undeliverable, the recorder
10is not required to retain the returned notice.
11(d) Where the county recorder contracts with any party or parties
12for the performance of the processing or the mailing of the notice,
13or both, as authorized by this section, the contract shall be awarded
14by competitive bid. The county recorder shall solicit written bids
15for the contract in a newspaper of general circulation in the county,
16and all bids received shall be publicly opened and the contract
17awarded to the lowest responsible bidder. If the county recorder
18or his or her designee deems the acceptance of the lowest
19responsible
bid is not in the best interest of the county, all bids
20may be rejected.
21(e) If the board of supervisors adopts an authorizing resolution,
22pursuant to subdivision (a), that includes notification of the parties
23described in subparagraph (B) of paragraph (1) of subdivision (a),
24the County of Los Angeles shall, on or before January 1, 2019,
25submit a report to the Senate Committee on Judiciary and the
26Assembly Committee on Local Government that shall include, but
27not be limited to, the following information:
28(1) A copy of each type of notice mailed pursuant to
29subparagraph (B) of paragraph (1) of subdivision (a).
30(2) The number of filed notices of default and notices of sale
31for which a fee was collected pursuant to Section
27387.1.
32(3) The amount of fees collected, pursuant to Section 27387.1,
33for the filing of notices of default and notices of sale.
34(4) The amount of fees spent to provide housing information,
35counseling, and assistance, described in Section 27387.1.
36(5) Documented examples showing how the county’s
37homeowner notification program led to successful investigations
38of real estate fraud activity, referrals to prosecuting agencies,
39avoided foreclosures, or helped property owners and residents
40avoid falling victim to real estate fraud.
P4 1(6) An evaluation of whether the county’s homeowner
2notification program, in comparison to other available policy tools
3in the County
of Los Angeles, is a cost-effective approach to
4combating real estate fraud and reducing foreclosures.
5(7) An evaluation of whether the county’s homeowner
6notification program is an effective way to inform tenants of an
7impending foreclosure and to combat abusive post-foreclosure
8practices by property owners.
9(7)
end delete
10begin insert(8)end insert An assessment of how the county’s homeowner notification
11program compares to real estate fraud and foreclosure prevention
12programs being
implemented in at least three other large, urban
13California counties.
14(f) This section shall remain in effect only until January 1, 2020,
15and as of that date is repealed, unless a later enacted statute, that
16is enacted before January 1, 2020, deletes or extends that date.
Section 27297.6 of the Government Code, as added
18by Section 2 of Chapter 141 of the Statutes of 2011, is amended
19to read:
(a) Following adoption of an authorizing resolution
21by the Los Angeles County Board of Supervisors, the Los Angeles
22County Recorder may, within 30 days of recordation of a deed,
23quitclaim deed, or deed of trust, notify by mail the party or parties
24executing the document. The recorder may require, as a condition
25of recording, that a deed, quitclaim deed, or deed of trust indicate
26the assessor’s identification number or numbers that fully contain
27all, or a portion of, the real property described in the legal
28description. If the description contains more than one assessor’s
29parcel, all assessor’s parcels shall be indicated. The form of the
30entry shall be substantially as follows: Assessor’s Identification
31Number __-__-__.
32(b) This section shall not apply to the recordation of any
33document where the federal government, or state, county, city, or
34any subdivision of the state acquires title.
35(c) The failure of the county recorder to provide the notice as
36permitted by this section shall not result in any liability against
37the recorder or the county. In the event that the notice is returned
38to the recorder by the postal service as undeliverable, the recorder
39is not required to retain the returned notice.
P5 1(d) Where the county recorder contracts with any party or parties
2for the performance of the processing or the mailing of the notice,
3or both, as authorized by this section, the contract shall be awarded
4by competitive bid. The county recorder
shall solicit written bids
5for the contract in a newspaper of general circulation in the county,
6and all bids received shall be publicly opened and the contract
7awarded to the lowest responsible bidder. If the county recorder
8or his or her designee deems the acceptance of the lowest
9responsible bid is not in the best interest of the county, all bids
10may be rejected.
11(e) This section shall become operative on January 1, 2020.
Section 27387.1 of the Government Code, as amended
13by Section 3 of Chapter 141 of the Statutes of 2011, is amended
14to read:
(a) In addition to any other recording fee, the
16recorder, pursuant to Section 27297.6, may collect a fee from the
17party filing a deed, quitclaim deed, deed of trust, notice of default,
18or notice of sale, unless that party is a government entity. The fee
19shall not exceed the mailing cost of the notice specified in Section
2027297.6 and the actual cost to provide information, counseling, or
21assistance to a person who receives the notice, not to exceed seven
22dollars ($7).
23(b) The actual costs comprising the fee described in subdivision
24(a) may include administrative costs incurred by the recorder in
25performing the actions described in that subdivision. However,
26the administrative costs
shall not exceed 10 percent of the total
27fee collected pursuant to subdivision (a).
28(c) This section shall remain in effect only until January 1, 2020,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2020, deletes or extends that date.
Section 27387.1 of the Government Code, as added
32by Section 4 of Chapter 141 of the Statutes of 2011, is amended
33to read:
(a) In addition to any other recording fee, the recorder
35may collect a fee from the party filing a deed, quitclaim deed, or
36deed of trust, other than a government entity, pursuant to Section
3727297.6. The fee shall not exceed the mailing cost of the notice
38specified in Section 27297.6, not to exceed seven dollars ($7).
39(b) This section shall become operative on January 1, 2020.
The Legislature finds and declares that a special law
2is necessary and that a general law cannot be made applicable
3within the meaning of Section 16 of Article IV of the California
4Constitution because the County of Los Angeles is experiencing
5a unique and prolonged recovery from the financial and real estate
6fraud crisis.
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