Effective January 1, 2018, a $75 fee will be added to regular recording fees. The fee is added to every real estate instrument, paper, or notice recorded per parcel of real property. This includes, but not limited to, deeds of all kinds, reconveyances, 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. The extra fees are capped at $225 per transaction.
Exempt Recordings. SB 2 does not apply to all recordings. The following documents are exempt from the higher fee:
- a document recorded in connection with a transfer that is subject to the imposition of a documentary transfer tax
- a document recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier
- a document that is not related to real property
Association Budgets. The 930 percent increase in recording fees means that associations will be burdened with higher collection costs when it places liens on delinquent owners as it takes them through the foreclosure process. The higher recording costs are estimated at $1.5 billion over five years. As a result, associations will need to increase their budget estimates and write-offs involving delinquent owners.
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