Recording Fee Increase Fails in CA


Issue Brief

Senate Bill 391 sought to provide funding for affordable housing programs by adding a new $75 recording fee for all real estate documents (i.e., notice of lien, notice of foreclosure, etc.). The bill was strongly supported by members of legislative leadership but opposed by a coalition of groups highlighted by the California Realtors Association.


While laudable in intent, the bill would have placed a significant burden on the recovering real estate market and had a disproportionate effect on timeshare associations—which typically need to record these documents far more frequently than a whole ownership regime.  Timeshare associations and their owners could have faced new fees of tens of thousands of dollars annually while developers would have seen marked increases in transaction costs.


Position/Call to Action

ARDA and ARDA ROC sought proportional changes to the fees which recognized the unique structure of timeshare interests when compared to whole ownership regimes.  Such changes would have reduced costs for timeshare recordings dramatically had the bill passed. 


SB 391 failed to meet the recent deadline for all bills to clear the Appropriations Committee.  As a result, no new recording fees will be enacted.  ARDA and ARDA ROC will continue to monitor this issue for last minute amendments as the end of the legislative session approaches. 

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