Recording Fee Legislation Passes Senate on Party-Line Vote; Measure Now Moves to State Assembly
Thursday, July 6, 2017
Senate Bill 2 (Atkins), which would fund affordable housing through a substantial increase in recording fees, passed out of the State Senate earlier today on a party-line vote. The bill now moves to the State Assembly.
SB 2 would impose a fee of $75.00 on the recording of each real estate document, except those documents involved in a transfer or sale of real property. Fee revenues would be available for expenditure for affordable housing purposes, upon appropriation by the Legislature.
The fee is capped at $225.00 per transaction, but would nevertheless result in significant increases in recording fees paid on refinances and other transactions which require the recordation of documents. In addition to a potential chilling effect on refinances, the bill would further exacerbate the title industry's struggle to accurately calculate recording fees as required under TRID.
CLTA remains strongly opposed to the bill and has formed a coalition of anti-tax groups and other associations that share its opposition to the significant recording fee increases. A copy of the most recent letter expressing the coalition's opposition is available here.