HomeMy WebLinkAboutMINUTES - 04072009 - C.81RECOMMENDATION(S):
ACKNOWLEDGE that Government Code 27388 requires a County Board of
Supervisors to adopt real estate recording fees and associated increases by Board
Resolution.
1.
ADOPT Resolution No. 2009/144 increasing fees imposed on the recording of certain
real estate instruments from $2 to $3 and impose a fee of $3 on additional real estate
instruments as defined in Government Code section 27388.
2.
FISCAL IMPACT:
Though the fee is being increased, Real Estate Fraud Prosecution Fund revenue may not
increase due to the downturn in the real estate market.
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 04/07/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Jennifer Marttinen
(925) 957-2234
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: April 7, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Clerk-Recorder - Chambers, Auditor-Controller, District Attorney - Marttinen
C.81
To:Board of Supervisors
From:Robert J. Kochly, District Attorney
Date:April 7, 2009
Contra
Costa
County
Subject:UPDATE REAL ESTATE FRAUD PROSECUTION FEES PURSUANT TO GOVERNMENT CODE
SECTION 27388
BACKGROUND:
The Contra County District Attorney's Office Real Estate Fraud Unit investigates and
prosecutes serious and significant cases involving fraudulent transactions that can cause
unsuspecting victims to lose their life savings and homes. This Unit is funded in part by
the fee on Real Estate documents assessed by the Contra Costa County Clerk-Recorder's
Office. Given the current economic climate and the collapse of the real estate and credit
markets, we have received an increasing number of complaints of egregious fraud
committed on homeowners, including foreclosure fraud. The current economic situation
is ripe for crooks and thieves who prey on the financial difficulties of homeowners. The
proposed additional fee imposed upon real estate documents will assist our efforts to
protect the citizens of Contra Costa County and ensure the safety and continuity of their
home ownership.
Section 27388 of the Government Code, relating to local government, allowed for the
establishment of a Real Estate Fraud Prosecution Trust Fund. The program was
established in the District Attorney's Office budget and recording fees were established
for real estate instruments, paper, and notices, with fees set at $2 per instrument. Monies
collected by the Clerk-Recorder's Office are currently, and shall continue to be, deposited
into the interest bearing Real Estate Fraud Prosecution Trust Fund (Fund No. 113300) for
the sole purpose of prosecution and investigation of real estate fraud.
Senate Bill (SB) No. 1396 was approved by the Governor of California and filed with the
Secretary of State on September 27, 2008. SB1396 authorizes a county Board of
Supervisors to impose a fee of up to $3 to be paid at the time of recording every real
estate instrument, paper, or notice required or permitted by law to be recorded within that
county, except those expressly exempted from payment of recording fees.
A "real estate instrument" was previously defined as a deed of trust, an assignment of
deed of trust, a reconveyance, a request for notice, and a notice of default. SB 1396
broadens the definition than previously applied to include a substitution of trustee, a
notice of trustee sale, and a notice of rescission of declaration of default. It does not
include any deed, instrument, or writing subject to the imposition of a documentary
transfer tax as defined in Section 11911 of the Revenue and Taxation Code, nor any
document required to facilitate the transfer subject to the documentary transfer tax. Funds
from the Real Estate Fraud Prosecution Trust Fund shall be used only in connection with
the criminal investigations or prosecutions involving recorded real estate documents.
It should be noted that the County Clerk-Recorder began collecting increased fees of $3
on certain real estate instruments and imposed a new fee of $3 on additional real estate
instruments pursuant to SB 3976 beginning on January 1, 2009.
ATTACHMENTS
Resolution No. 2009/144