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92 CALIFORNIA Are New Recording Fees Solving California's Housing Issue? By Michelle A. Mierzwa and Joan C. Spaeder- Younkin California Senate Bill 2, the Building Homes and Jobs Act, attempts to address California's housing dilemma by bringing in an estimated $250M annually via an additional $75 fee per recorded real estate document. rough February, the Act has generated roughly $90M. e Act adds Government Code §27388.1, requiring a $75 fee per document, commenc- ing January 1, 2018, for recording "of every real estate instrument, paper, or notice required or permitted by law to be recorded … per each single transaction per parcel of real property." e fee is capped at $225 for transactions recording multiple documents simultane- ously. Section 27388.1(a)(1) defines "real estate instrument, paper, or notice" as "a document relating to real property," including a list such as a deed, grant deed, trustee's deed, deed of trust, reconveyance, quit claim deed, assign- ment of deed of trust, notice of default, etc. e statute does not limit the definition to a finite list; other real property related documents not specifically listed are subject to the fee unless an exception applies. Section 21388.1(a)(2) provides exceptions to the $75 fee, including transactions involving transfer/sale of property subject to documen- tary transfer tax under California Revenue and Taxation Code §11911. Section 2 of the Bill describes the intention of the exception as fol- lows: "In order to promote housing and home- ownership opportunities, the recording fee imposed by this act shall not be applied to any recording made in connection with a sale of real property. Purchasing a home is likely the largest purchase made by Californians, and it is the intent of this act to not increase transaction costs associated with these transfers." Section 21388.1(a)(2) also provides an exception for transfer of property to a grantee who will occupy the dwelling as a principal residence. us, documents recorded on an owner-occupied property are exempt, but if it involves non-owner occupied property, the fee will be imposed. As a practical matter, County Recorders do not agree on which documents are subject to the fee or entitled to an exception, creating DS News is the only publication in the country solely dedicated to providing default servicing professionals with news and content focused on their industry. SUBSCRIBE TO THE LEADER IN DEFAULT SERVICING NEWS SUBSCRIBE NOW! Call 214.525.6700 or connect with us online at DSNews.com.