If you have recently bought or sold a home, then you may have noticed that a new state recording fee was added. This new fee went into effect on January 1 of this year. According to the County of Riverside, the new fee adds $75 per title to the first 3 titles of a transaction. The new fee will not be more than $225. This is on top of the regular recording fees that you must pay.
The State Legislature passed a new law, known as the Building Homes and Jobs Act or Senate Bill 2 (SB 2). SB 2 aims to raise money to fund affordable housing projects. It requires the county recorder to collect the new fee. SB 2 does not apply to all recordings. If you think the fee does not apply to your recording, you must contact the Riverside County Clerk-Recorder.
Here are some common reasons you may use to explain why you should not have to pay the new fee:
- This is a document recorded in connection with a transfer that is subject to the imposition of a documentary transfer tax.
- This is a document recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier.
- This is a document that is not related to real property.
If you want to learn more about the law? Here it is:
Government Code 27388.1(a)(1)
“…A fee of seventy-five dollars ($75) shall be paid at the time of recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fees, per each single transaction per parcel of real property. The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225).”
Government Code 27388.1(a)(2)
“The fee shall not be imposed on any real estate instrument, paper, or notice recorded in connection with a transfer subject to the imposition of a documentary transfer tax as defined in Section 11911 of the Revenue and Taxation Code or on any real estate instrument, paper or notice recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier.”
Should you care to read up more on this new law, please log in to the Riverside County Website at www.asrclkrec.com. And if you’re considering upsizing or downsizing your home, please feel free to contact me directly and I’ll gladly discuss with you your home buying options. Don’t hesitate to call me, Ben Rubalcava, today at (951) 444-5825.