Senate Bill 2 - Building Homes and Jobs Act

The information provided is subject to change, clarify language for this Bill is currently being prepared.

Government Code 27388.1 reads as follows:

(a) (1) Commencing January 1, 2018, and except as provided in paragraph (2), in addition to any other recording fees specified in this code, 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). “Real estate instrument, paper, or notice” means a document relating to real property, including, but not limited to, the following: deed, grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale, notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants, conditions, and restrictions.

(2) The fee described in paragraph (1) 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. Documents believed to be exempt from paying the $75 Building Homes and Jobs Act fee must have an exemption on the face of the document, or on the cover page, prior to depositing with the Recorder. The following exemptions may apply:

  • “Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a transfer subject to the imposition of documentary transfer tax”, or
  • “Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a transfer of real property that is a residential dwelling to an owner-occupier”, or
  • “Exempt from fee per GC 27388.1 (a) (1); fee cap of $225 reached”
  • “Exempt from the fee per GC 27388.1 (a) (1) Not related to real property”

Failure to include an exemption reason will result in the imposition of the $75 Building Homes and Jobs Act fee. Fees collected are deposited to the state and may not be available for refund.

 

Click or tap here for a list of SB 2 document examples.

Click or tap here to view SB 2 and DA Fraud fees by document title.

 

Reference

County of SLO - SB2 Public Notice
County of SLO - SB2 Information Guide
County of SLO - SB2 Exemption Worksheet
SB2 Exemption Cover Page
Fees
Recorded Documents

Frequently Asked Questions

Q1: What is the Building Homes and Jobs Recording Fee?

The new fee is an additional charge passed by the legislature and signed by the Governor to establish permanent, ongoing sources of funding dedicated to affordable housing development.  The fee is assessed at the time documents are recorded into the public record with the County Recorder’s office.

Q2: Does the new Recording Fee replace previous charges for recording?

No, the new Recording Fee is charged in addition to previous recording charges collected by County Recorders.

Q3: When does the new recording fee become due?

Effective January 1, 2018, the recording fee becomes due at the time an instrument, paper or notice is recorded with the County Recorder’s office.

Q4: Is the Building Homes and Jobs Recording Fee charged on all documents presented for recording?

No, the Building Homes and Jobs Recording Fee is charged on real estate instruments, papers or notices permitted by law to be recorded unless otherwise exempt.

Q5: What is considered a “real estate instrument, paper or notice”?

The new legislation defines this as a “a document relating to real property, including, but not limited to, the following: deed, grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale, notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants, conditions, and restrictions.” We have provided a list of document titles and if the fee is applicable at the end of this document.

Q6: How much is the fee?

The fee is $75.00 per instrument, paper or notice per each single transaction per parcel of real property.

Q7: What is considered a “Single Transaction”?

A transaction refers to instrument, paper or notice presented together and related to the same parties and property transfer.

Q8: Is there a maximum aggregate housing fee charge per transaction?

Yes. The maximum aggregate housing fee charge for real estate instrument, paper or notice recorded in a single transaction is $225.00.

Q9: Are any real estate instruments exempt from the Building Homes and Jobs Recording Fee?

Yes. The following are real estate instruments, papers or notices are exempt from the additional recording fee:

  • “Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a transfer subject to the imposition of documentary transfer tax”, or
  • “Exempt from fee per GC 27388.1 (a) (2); recorded concurrently “in connection with” a transfer of real property that is a residential dwelling to an owner-occupier”, or
  • “Exempt from fee per GC 27388.1 (a) (1); fee cap of $225 reached”
  • “Exempt from the fee per GC 27388.1 (a) (1) Not related to real property”
Q10: What is considered a “Parcel of Real Property”?

A parcel is defined, for the purposes of interpretation of new Government Code Section 27388.1 as: ”a contiguous piece of land of any size that is in one ownership.” The parcel is described by its individual legal description.

Q11: How will the County Recorder determine that maximum has been paid, such that additional instruments recorded in connection with a single transaction are not charged an additional fee?

After the maximum Building Homes and Jobs Recording Fee of $225 has been met, the document submitter will need to note the valid exemption. See Exemption Cover Page.

Q12: What real estate instruments, papers or notices will be considered recorded “in connection with” a transfer subject to the imposition of documentary transfer tax?

The document with documentary transfer tax stamped and paid on it is self-evident and requires no additional stamp. However, documents presented “in connection with” is interpreted to mean documents involving the same parties and/or property that are recorded concurrently. Documents recorded concurrently will have to include an exemption indicating they are part of an exempt transaction.

Q13: What real estate instrument, paper or notice will be considered recorded “in connection with” a transfer of real property that is a residential dwelling to an owner-occupier?

All instruments necessary to transfer ownership, relinquish debt and secure new debt recorded in a single transaction will be considered to be in connection with an exempt transfer, if an exemption is declared and presented with the document.

Q14: For real estate instrument, paper or notice to be considered recorded “in connection with” a transfer of real property that is a residential dwelling to an owner-occupier, must such document(s) be recorded concurrently with the document transferring a residential dwelling to an owner-occupier?

“In connection with” is interpreted to mean documents involving the same parties and/or property that are recorded concurrently. Documents recorded concurrently will have to include an exemption indicating they are part of an exempt transaction.

Q15: How are documents with multiple titles going to be charged the Building Homes and Jobs Recording Fees?

Documents with multiple titles will be charged per title and recording fees. A Substitution of Trustee and Full Reconveyance will be charged $150.00 plus recording fees (2 titles). A Deed of Trust, that includes Assignment of Rents within the document, will be charged $150.00 (2 titles) plus recording fees.

Q16: If recording a subdivision map describing multiple lots in a subdivision, is the Building Homes and Jobs Recording Fee due equal to the number of parcels being created by the map?

No. The fee will only be charged for a single transaction regardless of the number of parcels.

Q17: How will Covenants, Conditions and Restrictions (CCRs) for a subdivision be charged the Building Homes and Jobs Recording Fee?

They will be charged $75.00 plus recording fees, the property affected is treated as one parcel.

Q18: Are documents being re-recorded to correct a name or attach a legal description subject to the Building Homes and Jobs Recording Fee?

Yes, previously recorded documents will be charged except minor corrections pursuant to Government Code 27201 (B) and (C).