An Express Article from the California Land Title Association
Bulletin 13/14-22 - August 27, 2013
Legislation sponsored by the CLTA to address the ministerial act of recording under the Homeowner's Bill of Rights has passed the State
Legislature and is on its way to the Governor's desk. Senate Bill 310 (Calderon) codifies the intent of the 2012 Conference Committee on SB 900 (Ch. 87, Statutes of 2012) by making it clear that title companies recording documents at the direction of a trustee or lender or mortgage servicer - such as notices of default and other related documents - are not violating the Homeowner's Bill of Rights.
The bill received no negative votes during its passage through the Legislature. CLTA sponsored this bill as directed by the Board of Governors.
The Conference Committee on last year's legislation specifically stated in its report that the bill was not intended to create liability for the ministerial act of recording. Compliance by trustees, lenders and loan servicers with all of the new requirements of the Homeowner's Bill of Rights (single point of contact, notices, loan modification offers) are off-record matters that cannot be verified by a title search. Therefore, the act of recording based on instructions from a third party was not intended to and does not create liability under the law.