State Imposes New Recording Fee for Real Estate Documents

On September 29, 2017, Governor Jerry Brown signed into law Senate Bill 2 which added section 27388.1 to the Government Code.  As of January 1, 2018, all county recorders in the State of California are required to impose a $75 fee to be paid at the time of recording for every real estate document being recorded, and for each parcel of real property.  The language of the statute includes “deed, grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale, notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants conditions and restrictions.”  According to the language of SB-2, these fees collected will be allocated to the Department of Housing and Community Development, and California Housing Finance Agency to assist persons at risk of homelessness, affordable housing, and other housing related programs in the State.

It is important to note that this $75 fee will not be imposed in connection with a property sale where a documentary transfer tax under Revenue & Tax Code 11911 is being paid on the total value of the sale price, or on a deed by an owner-occupier of a residential property transferring the property into his or her trust or between owners.   However, this fee would apply to all other real estate documents listed above, and transfers from an owner to a  trust for a non owner-occupied property (ie/ rental or investment property).    You can read the text of the new law here: Gov Code 27388.1

This article is for informational purposes only and does not constitute legal advice. For specific questions related to this article, please contact the Law Office of Ashley M. Peterson, and we would be happy to answer whatever legal questions you may have.

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