Title
District Attorney's Office and Recorder-Clerk's Office recommending the Board:
1) Receive and file the 21st Annual Report on Real Estate Fraud for Fiscal Year 2025-26;
2) Adopt and authorize the Chair to sign Resolution 130-2026, extending the current suspension of the Real Estate Fraud recording fee through December 31, 2026, and thereafter, reinstating said fee at $2.00 per recording, effective January 1, 2027; and
3) Approve and authorize the Chair to sign a Fiscal Year 2025-26 budget transfer transferring $10,680 of Real Estate Fraud Special Revenue Fund funding to the Recorder-Clerk’s Office and increasing services and supplies appropriations by $10,680. (4/5 vote required)
FUNDING: Real Estate Fraud Prosecution Fund.
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DISCUSSION / BACKGROUND
In accordance with Government Code Section 27388(d), the Board of Supervisors must annually review the effectiveness of the District Attorney’s Office in deterring, investigating, and prosecuting Real Estate Fraud, based on information provided in the District Attorney’s annual report. The report is attached.
As presented at the 21st Annual Real Estate Fraud Committee meeting on July 13, 2026, the total number of FY 2025-26 Real Estate Fraud cases reported to the District Attorney’s Office has slightly decreased compared to the prior year. As of June 30, 2026, a total of 30 cases had been reported and investigated. Notice of Defaults increased by 9%, and Notices of Trustee Sales increased by 55% compared to the previous year’s data.
This year, the Office received reports of solar panel scams occurring in El Dorado County. Sales personnel from certain solar companies reportedly targeted elderly residents, leading to high installation costs, long-term payment commitments, and little or no return on investment. This trend is occurring statewide, and investigations into solar company sales practices will continue.
The Real Estate Fraud Program also continued its collaboration with the Recorder-Clerk’s Office to strengthen communication channels for reporting potential fraud. The “Tips & Resources” brochure and the Vacation Rental Scam Warning Flyer remain available in the District Attorney’s Office lobby, on its website, and at the Recorder-Clerk’s Office. The Recorder-Clerk actively reports suspicious activity and is exploring additional methods to alert property owners when their land is sold. Currently, owners are notified when property title changes through a Quit Claim Deed. Recorder staff frequently contact District Attorney Investigators regarding law violations, real estate concerns, and walk-in reports.
During the annual committee meeting, the Real Estate Fraud recording fee suspension was also reviewed. On July 26, 2022, the Board Chair executed Resolution 115-2022 (Legistar 22-1294), suspending the $2.00 recording fee from October 1, 2022, through September 30, 2025. On July 29, 2025, the Board Chair executed Resolution 104-2025 (Legistar 25-1263), extending the suspension through September 30, 2026. The recording fee is the primary funding source for the Real Estate Fraud Program. The fee was originally suspended due to decreased workload, reduced revenue drawdowns, and an increasing fund balance. With the suspension nearing expiration, the committee determined it appropriate to extend the suspension through December 31, 2026, and reinstate the $2.00 fee effective January 1, 2027. Program activity is anticipated to increase for both the District Attorney and Recorder-Clerk Offices in the coming years.
For FY 2025-26, it was determined that Real Estate Fraud funds could appropriately offset costs incurred by the Recorder-Clerk’s Office for proactive fraud-prevention efforts. As noted in the attached meeting minutes, the Recorder-Clerk has contracted with Equity Protect for monitoring services that track public listings for potentially fraudulent activity. Approximately $10,680 in related expenses were incurred during the fiscal year. The associated budget transfer request to increase revenue and appropriations in the Recorder-Clerk’s FY 2025-26 budget is included in this item for Board approval.
ALTERNATIVES
Should the Board choose not to approve the Chair’s signature on the enclosed resolution, extending the suspension of the Real Estate Fraud recording fee through December 31, 2026, and reinstating the $2.00 fee effective January 1, 2027, the suspension will instead expire on October 1, 2026. This would leave insufficient time for the Recorder-Clerk’s Office to update its fee schedule accordingly.
PRIOR BOARD ACTION
07/29/2025 Legistar file 25-1263: The Board received and filed the twentieth annual report on Real Estate Fraud for FY 2024-25 and signed a resolution to extend the suspension of the $2.00 recording fee for an additional year, through September 30, 2026.
07/26/2022 Legistar file 22-1294: The Board received and filed the seventeenth annual report on Real Estate Fraud for FY 2021-22 and signed a resolution to suspend the $2.00 recording fee for a term of 3 years, effective October 2022.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Auditor Controller’s Office
Recorder-Clerk’s Office
Real Estate Fraud Committee
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Real Estate Fraud Prosecution Trust fund beginning balance as of July 1, 2025, was $396,724.88. The FY 2025-26 interest accrued totals $16,766.94, leaving an unadjusted ending balance of $413,491.82 as of June 30, 2026. The total FY 2025-26 investigation and prosecution expenditures for the Real Estate Fraud Program are billable at $148,352. Additionally, the Recorder-Clerk’s efforts are billable at $10,679.92. Following the enclosed budget transfer approval and the subsequent transfer of expenditures from the Real Estate Fraud Prosecution Fund to the District Attorney’s Office and the Recorder-Clerk’s Office respectively, the FY 2025-26 ending fund balance will be $254,459.90. There is no impact to Net County Cost for this program.
The Real Estate recording fee of $2.00 will continue to be suspended through December 31, 2026, and will be reinstated effective January 1, 2027.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Upon approval, Clerk of the Board:
1) To provide one copy of the executed resolution to the CAO Central Fiscal Unit; Attn: Justene Cline; and
2) To forward the executed budget transfer to the Chief Administrative Office for processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Vern Pierson, District Attorney
Janelle Horne, Recorder-Clerk