After the last few efforts to implement e-recording, the newest version that has been piloted in San Mateo County is a costly boondoggle.
The title companys bear high added costs on many levels:
1. Equipment and software of over $10k.
2. One person fingerprinted, background checkedd, state licensed and insurance bonded will have the access codes to the system. This means: NO e-recording on every staff person's desk, but one central recorder doing the work, maybe 2 in case one goes on vaca. Next round: they go on "strike" and refuse to e-record unless they get a higher wage. lol
3. Title Company pays the same recording fees, but then bears the duty and liability at their own cost of stuffing an envelope with the original document (labor and envelope costs) and mailing it (stamps) to the pertinent party; something that the county would otherwise do.
4. Unknown cost in maintenance and upkeep of systems when they malfunction; also unknown as to whose "end" (county, title company, or transfer points inbetween), when it goes down. This will create costly delays and add to communication costs.
5. Final cost, and it's a big one: Liability. The title company agent will still need to go to the Records Office twice a day (minimal), as the online index of records is not up-to-date and able to hence provide title clearance. Even if it were updated by the minute, it does not (in California) provide online access to the document images necessary to clear or verify "hits" on a name search. Running such things "in house" is asking for a claim down the line.
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