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News & Press: Sacramento Report

Governor Signs Federal Lands Bill - CLTA to Review for Practice Recommendations

Tuesday, October 17, 2017  
Posted by: Heather Starkey
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Governor Brown signed Senate Bill 50 (Allen) to make any transfer of federal lands void ab initio unless the State Lands Commission waives its first right of refusal. The CLTA Forms and Practices Committee will be reviewing the bill to consider practice recommendations. The CLTA opposed the measure on the grounds that it is likely unconstitutional and places innocent parties at risk of being fined up to $5,000 if they record a void transfer.

Based largely on CLTA’s opposition, the bill was amended to address certain transfers, but the amendments never removed the CLTA’s opposition. The amendments exempted the renewal of an existing lease or the transfer of lands to a Native American tribe. SB 50 was also amended to permit the State to waive its right to a routine transfer, which includes a federal exchange of lands for equal value with a private party. After the CLTA pointed out that foreclosures of some government insured loans results in a transfer to a federal agency that subsequently sells the property, amendments were added exempting the sale of property acquired by a federal agency through a foreclosure proceeding.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851