SB-2

[steffan]

SB 2 just passed the legislature and is now on its way to the Governor's desk.

SB 2 adds a $75 fee to the recording of every real estate instrument. "Real estate instrument, paper, or notice” means a document relating to real property, including, but not limited to, the following: .... maps..."

I am guessing most recorders will interpret this to include records of surveys.

[Warren Smith]

Although it lists maps, it has interesting exclusions, and is limited to $225 per instrument.

Not sure a record of survey fits its category.

To be collected after Jan. 1, 2018.

[RAM]

and who gets the money?

[Edward M Reading]

and who gets the money?

County Surveyor? :)

[Warren Smith]

Recorder recovers cost, funding is for affordable housing/homeless for communities with a plan for subsidies by January 2019.

[Edward M Reading]

Way to burst my bubble Warren.

[Warren Smith]

Yeah, kinda shoots our efforts to have all transfer documents subject to the Survey Monument Preservation Fund down, unless we have Recorder's costs included.

This statute doesn't require a local ordinance for collection, just for disbursement.

[Warren Smith]

Explicitly exempted from this fee are transfers subject to Documentary Transfer Tax which are for residential property to owner-occupier. The preface to this provision states that the intent is not to burden homebuyers.

[surveyoron]

Does this mean I can raise my Corner Record fee per 8773.2(e)?

[Warren Smith]

Hah - that would be an unintended consequence!

[dedkad]

Will conveyances to and from a public agency still be exempt from recording fees?

[Warren Smith]

I would think so. The bill's language speaks to this being an additional fee to those conveyances which are already subject to a recording fee, subject to specific exclusions.

[Jim Frame]

The text of SB2 states:

a fee of seventy-five dollars ($75) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded

Maps aren't recorded, they're filed. I've been told that if one tries to record a Record of Survey by itself (i.e., not as part of a deed or other recordable instrument), the Recorder will reject it as not eligible for recording under the law. Despite the fact that the word "maps" appears in the list of documents to which the act applies, I think a good argument can be made that the fee doesn't apply to Records of Survey.

[David Kendall]

Maps aren't recorded, they're filed

What does this mean? I don't understand the distinction. My favorite map review person keeps writing this comment on map checks and while I try to be politically correct when I know better this one doesn't ring a bell. I have begun to use the accurate terminology as a result of his corrections but I'd really like to know if there is any significance

[surveyoron]

When a document is recorded the original document is returned to the person submitting it after the recording information has been added and copies are made. When a map is filed it is surrendered to the Recorder who keeps the original filed in the appropriate map book.

[steffan]

Maps aren't recorded, they're filed

What does this mean? I don't understand the distinction. My favorite map review person keeps writing this comment on map checks and while I try to be politically correct when I know better this one doesn't ring a bell. I have begun to use the accurate terminology as a result of his corrections but I'd really like to know if there is any significance

One distinction is that records of survey don't impart constructive notice. See Stearns v. Title Ins. & Trust Co. 18 Cal.App.3d 162.

Interestingly, in reading that case you will note that justice Kaufman repeatedly refers to the "recording" of records of survey. Perhaps we should change the name to "filed surveys" instead of "records of survey"??

I am not hopeful that any or each of the individual county recorders will be making any distinction regarding the semantics of "filed" versus "recorded" when deciding which documents to apply the $75 fee towards.

[dharri]

In San Diego county, the county recorder assigns records of survey a file number and indicates the date that they were filed and then records them. They are indexed under recorded documents. It would be informative for someone from the recorders association to explain the difference between filed and recorded documents because in this situation, both things seem to be happening.

[Warren Smith]

Bear in mind that the filing of a subdivision map to create lots or a record of survey to show established boundaries does not transfer ownership. That is what this Bill is targeted towards - those conveyances which are not to owner-occupiers which will fund the specified goals for local agencies which have an affordable housing plan in place. Previous sources for those programs have gone away. This is intended to be followed by a large bond issue for the same purpose.

The provision for deduction of Recorders' staff costs to make those determinations is telling.

[dedkad]

Bear in mind that the filing of a subdivision map to create lots or a record of survey to show established boundaries does not transfer ownership. That is what this Bill is targeted towards - those conveyances which are not to owner-occupiers which will fund the specified goals for local agencies which have an affordable housing plan in place. Previous sources for those programs have gone away. This is intended to be followed by a large bond issue for the same purpose.

The provision for deduction of Recorders' staff costs to make those determinations is telling.

Yet the language says this fee will apply to Deeds of Trust, easements, CC&R's, Subordination Agreements, etc., all of which are not conveyances.

Also, is the Recorder going to now be in the business of determining whether or not a grant deed they are presented with for recording is going to an owner-occupier? How are they going to make the distinction between that or someone who is just buying it to be a rental property?

[Warren Smith]

I can see yet another form to be completed at the time of recording.

[FOSTER]

Well, SB-2 is entering the County of Orange Recorder's Office January 1, 2018 ..... $75 plus $6 plus $2 for any additional sheet/s for every RS the Recorder records (Yes, the County Surveyor files the RS but the Recorder records the map)! Happy New Year!

[RAM]

FYI your Co. surveyors are fighting this. they have presented several arguments as to why R/S are exempt. still being discussed will update when we have more.

[David Kendall]

Yes, the County Surveyor files the RS but the Recorder records the map

Bunch of nuts. Did you tell them “Maps aren’t recorded they’re filed”??

[RAM]

David,

yes that was one of the arguments.

[dharri]

The deputy county recorder in San Diego County explained to me the difference between “recorded” and “filed”. With documents such as deeds, where the original document is returned to the person that submitted it and the recorder only keeps a copy of it, that document is considered “recorded”. With documents such as records of survey where the recorder retains the original document, those documents are considered “filed”.