In the ever-changing world of real estate and title insurance, there are a wide range of requirements and procedures associated with recording documents. In order to operate more efficiently and to prevent issues for you and your clients, it is beneficial to have a broad understanding of what the County Recorder requires.
First, a complete, correct, and legible notary acknowledgment is needed. The names of the parties being acknowledged must match the names on the documents. The name of the notary needs to be the same as shown on the stamp. The correct form of acknowledgment must be used.
Second, the document must be complete, legible, and with no blank sections. The best way to review the document is to start at the top of the document and work your way down, one blank section at a time. For example, on a deed, there is usually a “recording requested by” section, a “return address” area, and a “transfer tax declaration.” You will see a grantor, grantee, legal description, signature lines, and a notary form as you continue down. All of these sections and/or areas must be complete to the degree that the county will understand the transaction.
When a deed is to be filed with the county, typically a Preliminary Change of Ownership (PCOR) form must be completed and attached to the document. One area of the form that can cause problems is the sales price. The transfer tax on the deed must match the sales price shown on the PCOR. If they do not match, it will result in a “pull” or overpayment of the tax.
Keep in mind, that when the recording clerk(s) are reviewing the document, it must be able to “speak for itself” on all elements of the transaction. If the county finds something missing or incorrect, the document will be “pulled.”
Common Reasons for Rejected Recordings
Prior recording reference missing
Need a valid reason for the $0.00 Tax
Parties need to be identified
Exhibit missing/illegible
Illegible notary seal
Tax signature missing
How was tax computed
Tax amount missing
Mail tax statements missing
The recording requested is missing
Return mailing address missing
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