Friday, December 23, 2011

Law Changes/ Recorders Changes in 2012 for California

Knowledge is power, and here are a few changes that will affect the Real estate industry in California.



Sidebar Note

Most Recorders offices in CA will be closed the next 2 Mondays as the observed Holidays.



San Bernardino County is closed today. (only one in SoCal)





Effective January 1, 2012, the county will accept paper documents between 7:00 and 7:30 AM Monday thru Friday. We will be notified, at 1:30 that there are rejections and they can be picked up at 2:00. The rejections can be corrected and re-submitted by 3:00 for same day recording. The county will make every effort to return confirmation by 5:30 but they have the option to call and indicate that they were unable to get the documents recorded and they will be recorded the next day.



Here is a portion of the new laws going into effect next year. There are a few more that may impact the real estate industry and I will get them reviewed and out to everyone as soon as I can.



Effective 1-1-2012



AB75- A witness acknowledgment will no longer be acceptable on a Power of Attorney.



Effective 4-1-2012



SB4- Make the following changes to the Notice of Trustee Sale.



NOTICE TO POTENTIAL BIDDERS: If you are considering bidding

on this property lien, you should understand that there are risks involved in

bidding at a trustee auction. You will be bidding on a lien, not on the property

itself. Placing the highest bid at a trustee auction does not automatically

entitle you to free and clear ownership of the property. You should also be

aware that the lien being auctioned off may be a junior lien. If you are the

highest bidder at the auction, you are or may be responsible for paying off

all liens senior to the lien being auctioned off, before you can receive clear

title to the property. You are encouraged to investigate the existence, priority,

and size of outstanding liens that may exist on this property by contacting

the county recorder’s office or a title insurance company, either of which

may charge you a fee for this information. If you consult either of these

resources, you should be aware that the same lender may hold more than

one mortgage or deed of trust on the property.



NOTICE TO PROPERTY OWNER: The sale date shown on this notice

of sale may be postponed one or more times by the mortgagee, beneficiary,

trustee, or a court, pursuant to Section 2924g of the California Civil Code.

The law requires that information about trustee sale postponements be made

available to you and to the public, as a courtesy to those not present at the

sale. If you wish to learn whether your sale date has been postponed, and,

94 if applicable, the rescheduled time and date for the sale of this property,

you may call [telephone number for information regarding the trustee’s

sale] or visit this Internet Web site [Internet Web site address for information

regarding the sale of this property], using the file number assigned to this

case [case file number]. Information about postponements that are very

short in duration or that occur close in time to the scheduled sale may not

immediately be reflected in the telephone information or on the Internet

Web site. The best way to verify postponement information is to attend the

scheduled sale.



(B) A mortgagee, beneficiary, trustee, or authorized agent shall make a

good faith effort to provide up-to-date information regarding sale dates and

postponements to persons who wish this information. This information shall

be made available free of charge. It may be made available via an Internet

Web site, a telephone recording that is accessible 24 hours a day, seven

days a week, or through any other means that allows 24 hours a day, seven

days a week, no-cost access to updated information. A disruption of any of

these methods of providing sale date and postponement information to allow

for reasonable maintenance or due to a service outage shall not be deemed

to be a violation of the good faith standard.



Effective 7-1-2012



SB 189- An agent will no longer be able to sign on a Notice of Completion and Notice of Cessation. These notices must be signed and verified by the owner. If the owner fails to record a Notice of Completion or the notice is invalid the time for recording a Mechanic’s lien is set out below.



8412. A direct contractor may not enforce a lien unless the contractor

records a claim of lien after the contractor completes the direct contract,

and before the earlier of the following times:

(a) Ninety days after completion of the work of improvement.

(b) Sixty days after the owner records a notice of completion or cessation.



8414. A claimant other than a direct contractor may not enforce a lien

unless the claimant records a claim of lien within the following times:

(a) After the claimant ceases to provide work.

(b) Before the earlier of the following times:

(1) Ninety days after completion of the work of improvement.

(2) Thirty days after the owner records a notice of completion or

cessation.



SB 424- If a Design Professional Lien remains unpaid it may be converted to a Mechanic’s Lien.



8319. (a) A design professional may convert a recorded design

professional lien to a mechanics lien if all of the following requirements

are met:

(1) The design professional lien expires pursuant to paragraph (1) of

subdivision (b) of Section 8306.

(2) The design professional lien remains fully or partially unpaid.

(3) Within 30 days of the expiration of the design professional lien

pursuant to paragraph (1) of subdivision (b) of Section 8306, the design

professional records a mechanics lien for the amount of the unpaid design

professional lien.

(4) The recorded mechanics lien states that it is a converted design

professional lien but shall be recorded and enforced as a mechanics lien,

except the design professional need not provide a preliminary notice to

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enforce this mechanics lien. This mechanics lien shall be effective as of the

date of recordation of this mechanics lien and shall be given priority pursuant

to the provisions of Section 8450.

(b) This section shall not apply if a design professional lien expires

pursuant to paragraph (2) of subdivision (b) of Section 8306

Ryan J. Orr

Assistant Vice-President

Ticor Title

820 N Mountain Ave 100

Upland, Ca 91786

909-44-RyanO

www.ryanjorr.com

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