- April 10, 2018
- All California Issuing Offices
- LEGISLATIVE UPDATE - California 2017 Legislation
The following is a summary of the legislation impacting the title industry that passed during 2017.
SB2 (Chapter 364) dealing with recorded documents
In addition to other recording fees, this provides for a $75.00 recording fee for specified instruments recorded per every single transaction per parcel of real property. There is a $225.00 maximum per single transaction, per parcel. There are 2 exemptions (1) when a real estate instrument recorded in connection with a transfer subject to documentary transfer tax, and (2) a real estate instrument recorded in connection with, or transfer of, real property that is a residential dwelling to an owner-occupant. There is a list of instruments/documents subject to this fee, but the list is not limited to those documents. Documents we see most often include (but aren’t limited to) Deeds, Deeds of Trust, Reconveyances, and Notices of Completion.
This Bill became effective January 1, 2018.
SB 50 (Chapter 535) dealing with Federal Public Lands
This statute gives the California State Land Commission a right of first refusal for the sale of Federal Public Lands. Prior to the conveyance of federal public land, the State Land Commission must be provided a right of first refusal or the right to arrange for the transfer to another entity. If these rights are not provided, the conveyance is void ab initio. If the rights are provided, the State Land Commission must issue a Certificate of Compliance.
More information will follow on this. For now, any order dealing with the sale of Federal Public Land must be approved by an STG Underwriter.
AB 794 (Chapter 349) dealing with recorded document index correction
A person of or related to a record may request the Recorder to correct the information contained in an index of the record. The request must identify the exact location of the error in a specific index entry. The request must contain/provide sufficient evidence for the Recorder to determine that the index needs to be corrected. The Recorder must correct the index within 30 days and note on the correction both the error and the correction.
Where documents have been recorded between the “date of recording” and the “date of correction of the index”, refer to STG Underwriting for review.
AB 1284 (Chapter 475) dealing with Property Assessed Clean Energy (PACE)
This act is primarily regulatory in nature. It changes the name of the California Finance Lenders Law to the California Financing Law. It contains criteria for approval and requires the program administrator to make a reasonable good faith determination that the property owner has a reasonable ability to pay the assessments. It also requires that the property taxes shall not exceed 5% of the market value of the property. It also requires a financial estimate and disclaimer. There are no changes to our underwriting guidelines when dealing with PACE matters.
AB 534 (Chapter 44) dealing with mechanic’s lien removal
This act allows an owner of a separate interest in a common interest development to remove a lien against that owner’s property by paying to the lien holder the portion of the lien attributable to the owner’s separate interest or by recording a release of lien bond in the amount of 125% of the lien attributable to the owner’s separate interest.
AB 904 (Chapter 168) dealing with recognition of foreign money judgments
This act eliminates the Tribal Court Civil Money Judgment Act’s sunset provision of January 1, 2018, and provides that tribal court money judgments will be governed by the Uniform Foreign Country Money Judgments Recognition Act. There are provisions regarding personal jurisdiction, judgments for defamation, and declaratory relief. Any insurance or guarantee that deals with the elimination of a foreign country money judgment must be referred to an STG Underwriter.
AB 494 (Chapter 602) dealing with land use and accessory dwelling units
This act defines an accessory dwelling unit as a habitable living unit added to, created within, or detached from a single-family dwelling on a single lot. The unit cannot be separately conveyed but can be rented. Parking and setback requirements may not be required or even imposed. Local jurisdictions may vary.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.