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New “Re-Recording” Law To Take Effect In California January 1, 2017

December 28, 2016

The new law, AB 1974, is effective January 01, 2017 and regards “Re-Recording” a Document in the state of California.

AB 1974- This bill establishes requirements for standardization in the re-recording of documents.

  1. Re-recorded documents must be executed and acknowledged or verified as new documents, unless otherwise exempted as follows:
  • Document is exempt under Government Code Section 27287.
  • The instrument, paper or notice is presented solely to correct a recording sequence.
  • The instrument, paper of notice is presented with a corrective affidavit (see #3).
  1. A cover sheet is required for each re-recorded instrument, paper of notice and to state the reason for re-recording.
  1. Defines a new document, “corrective affidavit,” which must be presented with the document to be recorded pursuant to Section 27201©(1)©(i) where the instrument, paper or notice is presented solely to make a minor correction.  The corrective affidavit must satisfy all of the following:
  • Be attached to the original recorded instrument, paper, or notice.
  • Set out the information corrected.
  • Be certified by the party submitting the affidavit under penalty of perjury.
  • Be acknowledged pursuant to Section 27287.
  1. Defines a “minor correction” to include any of the following:
  • An incorrect or missing address of the party to which the instrument, paper, or notice is to be returned following recording pursuant to Section 27361.6.
  • Clarification of illegible text pursuant to Section 27361.7
  • An incorrect or missing printed or typed name of an individual or entity near the signature pursuant to Section 27280.5.
  • An incorrect or missing documentary transfer tax amount due pursuant to Section 11932 of the Revenue and Taxation Code.