Does Your Mortgage Company Have To Register Your Loan To The County Clerk?

What is "recording" when closing on a home purchase?

July 7, 2018

nine min read

In this commodity:

When you buy a home, the transaction is public.

Recording means filing your act and / or mortgage with your canton
The document is date and time stamped, and may exist uploaded to a web site for the public
You pay recording fees at closing when yous sign your final documents

Failing to properly record these documents can lead to problems. These include ownership disputes. It can go far difficult to get a mortgage. The legal and financial results can be severe.

That's why your lender will not give the go-ahead for yous to get the keys to your new home until recording is complete. Yes, your canton recording office can hold upwardly your move-in appointment by failing to record on time.

Agreement real estate recording

"Recording is only the procedure for making deeds and other real estate documents role of the public record for your local county," says chaser Andrew Maguire.

Note that over 100 types of documents can be recorded. These include those pertaining to deeds, mortgages, foreclosures, licenses, easements, subdivision declarations and fees. The recording fees charged depend on the nature and volume of the documents.

Attorney and Realtor Brian Swan says your title company or lawyer will deliver all recordable documents to the recorder's office in your canton. There, a recorder of deeds, county clerk or some other official will handle the recording tasks.

How much are recording fees?

The national average for recording fees is $125, according to the Home Buying Institute. Merely they can range from every bit low as zero in Alaska to percentages of the home price that tin can push costs into the thousands. In improver, some states combine real manor transfer taxes with recording fees, and others separate the charges.

The tabular array beneath is from the National Conference of State Legislatures and details how transfer taxes and recording fees are assessed by the state.

NCSL TABLE REAL ESTATE TRANSFER TAXES
Country	Tax Description	Rate
Alabama	Deeds: $0.50/$500 Mortgages: $0.15/$100	0.one% 0.15%
Alaska	None	N/A
Arizona	Flat real estate transfer fee: $two.00	Flat fee
Arkansas	State transfer taxation: $3.30/$1,000 (composed of two parts: real property transfer tax - $1.ten plus an additional tax currently at $two.xx)	0.33%
California	Local optional transfer taxation $0.55/$500. Cities within a county that implements a transfer tax tin can have a tax rate that is half of the county rate, $.275/$500, and the city tax can be applied as a credit against the county tax. Real estate instrument recording fee: up to $x	0.xi% 0.055%
Colorado	Transfer tax: $.01/$100 TABOR prohibits new or increased local transfer tax rates that were not in beingness prior to Jan. xiv, 1993. Localities' rates that imposed taxes earlier TABOR vary from ane% to four%.	0.01% 1% - iv%
Connecticut	Country conveyance tax is usually 1%; still, in lieu of that rate, it is as follows: 0.75% or 1.25%, based on value and apply. The 0.75% rate applies to unimproved land, holding up to $800K, and to holding with mortgage payments delinquent for over half-dozen months. The i.25% rate applies to nonresidential property other than unimproved country and belongings values over $800K. Municipal portion of transfer tax: 0.25% Any targeted investment community/municipality with a qualified manufacturing plant may impose an boosted tax of upward to 0.25%	0.75% - 1.25% 0.25%
Delaware	Country taxation: 3% taxation on value of property unless there is also a local transfer revenue enhancement; then the maximum rate is 2.v%. Local revenue enhancement: up to 1.5%	2.v% - 3% 0% - 1.5%
District of Columbia	Deed recordation taxation: 1.45%, or 1.i% for values up to $400,000; first-time homebuyer reduced recordation tax charge per unit: 0.725% Deed transfer tax: i.45% or 1.i% for values up to $400,000.	0.725% - 1.45% one.1% or 1.45%
Florida	Land transfer revenue enhancement charge per unit: $0.70/$100, unless a county levies the optional local documentary stamp surtax, then the state rate would be $0.60/$100 within the county. Optional county documentary surtax: up to $0.45/$100 Mortgage revenue enhancement: $0.35/$100 The state nonrecurring intangible tax rate is $2/$1000	0.7% or 0.6% 0.45% 0.35% 0.two%
Georgia	Land transfer tax: $1.00 for the first $1,000 and $0.10 for each additional $100 Intangible recording tax: $1.fifty/$500. The maximum amount of any intangible recording revenue enhancement payable with respect to any unmarried note is $25,000.	0.i% for the first $1,000; 0.1% for each additional $100 0.3%
Hawaii	State conveyance taxation: $0.10/$100 on property with a value < $600,000 $0.20/$100 on holding with a value between $600,000 just under $1M $0.30/$100 on belongings with a value between $1M but under $2M $0.l/$100 on property with a value betwixt $2M but nether $4M $0.70/$100 on holding with a value between $4M but under $6M $0.90/$100 on property with a value between $6M but under $10M $1.00/$100 on property with a value ≥ $10M For condos and single family residences where the purchaser is ineligible for a county homeowner's exemption, the revenue enhancement imposed for each transaction is: $0.xv/$100 on holding with a value < $600,000 $0.25/$100 on property with a value betwixt $600,000 to $1M $0.40/$100 on belongings with a value between $1M but under $2M $0.threescore/$100 on property with a value betwixt $2M just under $4M $0.85/$100 on property with a value betwixt $4M but nether $6M $ane.x/$100 on property with a value between $6M but under $10M $1.25/$100 on holding with a value ≥ $10M	0.i% - 1% 0.fifteen% - i.25%
Idaho	None	N/A
Illinois	Country real estate transfer revenue enhancement: $0.fifty/$500 County existent estate transfer taxation (optional): $0.25/$500 Home rule municipalities with a population over 1M may impose an boosted transfer tax of up to $1.50/$500	0.1% 0.05% 0.iii%
Indiana	None	N/A
Iowa	Land real estate transfer tax: $0.fourscore/$500	0.sixteen%
Kansas	Mortgage registration tax: 0.ane%	0.1%
Kentucky	Transfer tax: $0.50/$500	0.1%
Louisiana	None	Northward/A
Maine	Transfer tax: $two.20/$500	0.44%
Maryland	State transfer revenue enhancement: 0.5%, or 0.25% for offset-fourth dimension buyers Counties may levy a local transfer tax at a rate of upwardly to 0.5% State recordation tax charge per unit: $0.55 for a holding that is in 2 or more counties and is security for a corporate bond of a public service company. Canton recordation tax rates vary. Agricultural country transfer tax: 20 acres or more of agricultural land: 5% Less than 20 acres of agricultural state for agricultural use or every bit unimproved agronomical state: iv% Less than 20 acres of agricultural land assessed every bit improved agricultural land or agricultural state with site improvements: 3%	0.25% - 0.5% 0% - 0.5% iii% - 5%
Massachusetts	Transfer tax: $two.00 plus a fourteen% surtax (total=$2.28)/$500 Only Barnstable County has reduced the basic state excise tax rate, bringing their charge per unit to: $1.l plus a 14% surtax (total=$1.71)/$500	0.456% 0.342%
Michigan	State real manor transfer tax: $3.75/$500 County existent estate transfer tax: $0.55 - $0.75/$500 depending on +/- 2 one thousand thousand canton population.	0.75% 0.11% - 0.xv%
Minnesota	Deed revenue enhancement: $1.65/$500 Mortgage registry tax $0.23/$100 $5 transaction fee on the registration of any deed or mortgage for metropolitan counties.	0.33% 0.23%
Mississippi	None	N/A
Missouri	None	North/A
Montana	None	North/A
Nebraska	Stamp taxation rate: $two.25/$1000	0.225%
Nevada	State transfer revenue enhancement: $1.30/$500 County transfer tax: $0.65/$500 up to 700,000 county population $ane.25/$500 over 700,000 county population Counties with a population under 700,000 may impose an additional transfer tax up to $0.05/$500.	0.26% 0.13% 0.25% 0.01%
New Hampshire	Transfer taxation: $0.75/$100 Paid by buyer and by seller, making total rate i.5% $20 minimum tax on transfers of $iv,000 or less, for both heir-apparent and seller, totaling to $40. Recordation fee: $25	1.5%
New Jersey	NJ has several realty transfer fees: Country fee $1.25/$500 Canton fee $0.fifty/$500 Additional fee of $0.75/$500 for deeds more $150,000 General purpose fee that varies from $0.90-$ii.15/$500 for deeds more than $350,000 Supplemental fee that varies from $0.25-$1.xl/$500, depending on value of deed. Grantee fee on sales over $1M have a fee equal to 1% of entire price. Reduced rates are available for sellers of low- and moderate-income housing who are senior citizens, bullheaded or disabled. Rates range from $0.50-$3.twoscore/$500	1. 0.25% 2. 0.1% 3. 0.15% iv. 0.xviii% - 0.43% v. 0.05% - 0.28% half-dozen. i% 0.i% - 0.68%
New Mexico	None	N/A
New York	Realty transfer taxation: $2.00/$500; additional 1% levied on transfers over $1 million and some counties may levy more than. NY City realty transfer taxation: 1% to 2.625% based on +/- $500K home value and type of property. Mortgage recording revenue enhancement: Basic tax of $0.50/$100 Special additional tax $0.25/$100 Additional taxation: $0.25/$100 for counties outside of the Metropolitan Commuter Transportation District and $0.30/$100 for counties within it. NY City mortgage recording tax: $ane.00-$1.75/$100 based on +/- $500K domicile value and type of belongings. There are many other local optional taxes with rates varying past locality.	0.4% or i.4% over $1 1000000, possibly more depending on county. 1% - 2.625%0.five%0.25%0.25% or 0.30%1% - one.75%
North Carolina	Country excise tax: $i.00/$500 Vii counties (Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans and Washington) can levy an optional local real estate excise revenue enhancement to a maximum of $1.00/$100.	0.ii% 0% - one%
N Dakota	None	N/A
Ohio	Real holding conveyance fee: $1.00/$thousand Counties take the option to levy $0.thirty/$100 County auditors must collect a $0.50 parcel fee for each transfer of land or lot.	0.1% 0% - 0.3%
Oklahoma	Documentary stamp tax: $0.75/$500 Mortgage registration tax: $0.02-$0.10/$100, based on term of mortgage.	0.fifteen% 0.02% - 0.1%
Oregon	Localities are prohibited from imposing whatsoever fee or charge for transferring of title unless implemented earlier March 31, 1997. Only Washington County has a existent estate transfer tax that pre-dates the deadline, which is $1.00/$1000 when value exceeds $13,999.	0.one% - Washington County only
Pennsylvania	Documentary postage tax: i% Municipalities and schoolhouse districts may impose a local realty transfer tax to a maximum of 1%.	ane%
Rhode Island	Real estate conveyance tax: $2.30/$500	0.46%
Due south Carolina	Human activity recording fee $i.85/$500 ($1.30 land, $0.55 canton) Local real estate transfer fees are prohibited except for those in effect before January 1, 1991.	0.37%
South Dakota	$0.50/$500	0.1%
Tennessee	Transfer revenue enhancement: $0.37/$100 Mortgage tax: $0.115/$100 For whatsoever instrument that requires a receipt by the county of the land transfer revenue enhancement or mortgage tax, the canton collects a $ane.00 fee.	0.37% 0.12%
Texas	None	N/A
Utah	None	N/A
Vermont	Property transfer taxation: 1.25% or 0.5% Revenue enhancement rate is 0.5% on the outset $100,000 of value and 1.25% over $100,000. On a home financed with a buy money mortgage in conjunction with the VT Housing and Conservation Trust Fund, VT Housing Finance Agency, or the Us Dept. of Agriculture and Rural Development—there is no tax on the start $110,000 and one.25% on whatsoever corporeality college. Property transfer return fee: $10 Clean water surcharge: 0.2%, all the same, there are special rates on select transfers. Capital gains tax imposed on land sales, based on length of ownership.	0.5%-one.25%
Virginia	State recordation tax: $0.25/$100 under $10M For amounts greater than $10M, the rates are: $0.22/$100 $10M to $20M $0.nineteen/$100 $20M to $30M $0.sixteen/$100 $30M to $40M $0.xiii/$100 for annihilation over $40M Human activity of release recordation tax: $0.fifty Grantor tax: $0.50/$500 when the consideration paid for or value of interest, whichever is greater, exceeds $100. Optional local recordation taxation equal to ane-third of state recordation tax. Regional Congestion Relief Fee: $0.15/$100 State human activity recording fee: $20	0.25% under $10M; 0.13% - 0.22% above $10M, varies based on price 0.1% 0.fifteen%
Washington	Existent manor excise tax: 1.28% plus a local optional tax that cannot exceed 0.25% of 1% of the selling price. Homeless Housing and Assistance (Certificate Recording) Surcharge Fee: $forty surcharge on each document recorded through June 30, 2019. Exempts assignments or substitutions of previously recorded deeds of trust.	one.28%
West Virginia	Transfer tax: $1.65/$500 ($1.ten state, $0.55 canton) A canton may levy an optional excise tax up to $ane.65. A county with a farmland protection program has the option to levy an boosted county excise tax up to $1.10/$500. Flat recording fee: $20.	0.33%
Wisconsin	Transfer tax $0.30/$100	0.3%
Wyoming	None	Due north/A
Sources: NCSL. Lincoln Institute of Land Policy, Real Estate Transfer Charges. Bloomberg BNA Land Excise Tax Navigator, Existent and Other Property Transfers. Information collected in 2017. Please contact for more information.

Why recording is vital

When recorded, these documents create a concatenation of title. This concatenation is traceable to your property. And it helps verify a history of ownership. The public tin can access these records to acquire who owns your property. This helps prevent fraud, like "those people" on Craigslist who attempt to sell property they don't fifty-fifty own.

Attorney Elizabeth A. Whitman says this recording is crucial.

"It's of import that legal documents affecting championship exist recorded. It puts the public on observe virtually claims of rights to real estate. Without recording, a buyer may not exist obligated to award those claims," she says. "Information technology also creates an official record of buying. This manner, it'due south not devastating if the owner loses his or her original deed, for example."

Go along in heed that real estate recording has tradeoffs. It provides greater legal protection to owners.

"Just it as well puts your data on public record that anyone tin can access," says Swan. For example, a revenue enhancement lien against your home is out there for all to see.

What recording protects you lot from

Maguire notes that failure to record the deed can atomic number 82 to bad outcomes.

"Information technology can brand it impossible for you to obtain title insurance or borrow money from a lender. And information technology tin invite challenges to the validity of your ownership of the property," he says.

The latter scenario is the well-nigh worrisome.

Title insurance companies: Is title insurance required?

"What if your dwelling house's seller conveyed the human action to y'all and another buyer? At present you have ii different buyers with a claim on the same holding," says Swan. "Assume you never recorded the human action. And say heir-apparent ii never knew that you also had a deed. Buyer two actually has a better chance of being awarded the property in near jurisdictions."

The proficient news? Your lender requires you lot to purchase championship insurance. This protects you if a title defect, lien or claim of ownership arises earlier or after you buy your home.

"If there is a title defect, the title company must right it or pay you damages," Whitman says. "Only even with title insurance, it's however important for you to pay attention to your real estate records."

Recording rules

Whitman says every state has different recording rules. Recording fees vary between counties. All the same, they are unremarkably a very pocket-size role of the overall costs to buy or refinance a property.

"Many states uniformly require documents to be notarized. Some also require i or two witnesses," she says. "About states require that the chaser preparing a recorded document be named on that document. Several states require that the real manor revenue enhancement parcel number be on the deed."

Preparing for your real manor endmost

When y'all pay off your mortgage, the lender may or may not be required to record a lien release. And sometimes they only overlook information technology. You want to make certain that it is released in case yous want to borrow confronting or sell your home in the future.

Parsing the fine print

Annotation that existent estate recording doesn't actually found your buying. Instead, it helps resolve disputes betwixt parties with competing claims to your property.

"Some people believe they obtain buying rights when their deed is put onto public record. But this is incorrect," Swan says. "Having the deed in hand establishes ownership, in most cases." Recording the deed puts the public on notice that yous own the property.

Title insurance for mortgages: explained in plain English

Recall: recording of existent estate documents establishes a concatenation of championship. Information technology also alerts others that there may be other claims against your title — say a lawsuit, a lien from an unpaid contractor, a tax lien from the government, or an easement allowing others to employ the property.

"Say you and another party are each trying to merits ownership of your property. A court can examine how each of the parties fits into that chain of title. It will expect at the record of ownership based on the valid recorded deeds," says Maguire.

If there are title issues you need to resolve to firmly establish your rights, you lot can file in court to "placidity" the title. That means resolving these problems and in court establishing your rights as the owner and dismissing other claims.

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