Rejected Recordings: What You Need To Know
In the ever-changing world of real estate and title industry, there are a wide range of requirements and procedures associated with recording documents. In order to operate more efficiently for you and your clients, it is beneficial to have a broad understanding of what the County Recorder requires to prevent issues.
First is a complete, correct and legible notary acknowledgement. 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 their stamp. The correct form of acknowledgement must be used.
Second, the document must be complete, legible and with no blank sections. The best way to review the document from top to bottom is to start at the top of the instrument 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." As you continue down, there is a grantor, grantee, legal description, signature lines and notary form. 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 that seems to cause problems on this is the sales price. The transfer tax on the deed must match the sales price shown on the PCOR. If they do not, it will result in a "Pull" or over payment of the tax.
Keep in mind, when you are evaluating your document that when the recording clerk(s) are reviewing the instrument it must be able to "speak for itself" for all elements of the transaction. If the county finds something missing or incorrect, the document will be "pulled."
First is a complete, correct and legible notary acknowledgement. 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 their stamp. The correct form of acknowledgement must be used.
Second, the document must be complete, legible and with no blank sections. The best way to review the document from top to bottom is to start at the top of the instrument 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." As you continue down, there is a grantor, grantee, legal description, signature lines and notary form. 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 that seems to cause problems on this is the sales price. The transfer tax on the deed must match the sales price shown on the PCOR. If they do not, it will result in a "Pull" or over payment of the tax.
Keep in mind, when you are evaluating your document that when the recording clerk(s) are reviewing the instrument it must be able to "speak for itself" for all elements of the transaction. If the county finds something missing or incorrect, the document will be "pulled."
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