Title
Recorder-Clerk's Office recommending the Board adopt and authorize the Chair to sign Resolution 173-2026, authorizing the implementation of a Recorder Notification Program pursuant to Government Code Section 27297.7.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On October 6, 2025, Senate Bill 255 was approved by the Governor. This bill requires that on or before January 1, 2027, each county within the state needs to establish a recorder notification program and the board of supervisors of each county needs to adopt a resolution for these purposes. The purpose of this program is to enhance property owner awareness and reduce fraudulent property transfers by notifying parties when certain real property documents have been recorded.
Pursuant to the program and following the adoption of an authorizing resolution, the county recorder, or a designee authorized by the county board of supervisors, would be required, within 30 days of recordation of a deed, quitclaim deed, mortgage, or deed of trust, to notify the parties executing the document by mail in accordance with certain procedures.
The bill authorizes the county recorder, in addition to the mailed notice, to establish an electronic notification program. This bill would create an exemption from these requirements for the recordation of certain documents where a state or local government is the grantee. The bill would also authorize the county recorder to collect a fee from the party filing the deed, quitclaim deed, mortgage, or deed of trust in an amount that does not exceed the reasonable costs of services of the county to comply with these provisions.
Over the last three years, the Recorder-Clerk's office has averaged 15,022 deeds, deeds of trust, and mortgages being recorded. Based on this average, the Recorder-Clerk's office would need to mail an average of 290 notices weekly. The current postage rate is $0.82 with metered/commercial rate of $0.78, with an anticipated rate increase in January 2027 of 4.5%.
A breakdown of the costs of providing this notification:
Window Envelopes: $620
Postage: $12,319
Printing Charges including paper: $315
Equity Protect - Data Extract: $12,000
Staff Time 3.5 hours per week: $20,020
TOTAL: $45,274 (Cost per notice: $3.01)
The Recorder-Clerk's office is recommending the Senate Bill 255 Notification Fee be set at $3.00. This fee will only be collected on documents requiring this notification. In an effort to keep costs low, we are doing the mailings in-house. Equity Protect will be providing us with a weekly list of property and owners affected by spreadsheet. We will then merge a letter that includes the Grantor, Grantee, Assessor’s Parcel Number, and Document Type. This will impact the mail room with an additional 290 pieces of mail a week. If we find doing this notification in-house is not manageable, we will conduct a Request for Proposal, as required by this bill. In September 2027, we will audit this fee, examine the staff impact on our office and the county mail room and return to the Board if any fee adjustment is needed. Additionally, the Bill authorizes the Recorder to implement an optional electronic notification system, which was implemented last year with Equity Protect, and is free to property owners.
ALTERNATIVES
If the Resolution and program is not approved, the County would be out of compliance with Government Code 27297.7.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Administrative Office and County Counsel.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Notification fee will be considered to be added to the Recorder-Clerk's Schedule of Fees with Legistar file 26-1671. If this fee is not approved, the Recorder-Clerk's budget would have to absorb the $45,274 increase.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair’s signature on one original Resolution and forward one copy to the Recorder-Clerk's office.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Janelle K. Horne, Recorder-Clerk
Catrina Christensen, Assistant Recorder-Clerk