CA Assembly Bill 2326 | NNA

CA Assembly Bill 2326

Notary Law Update: CA Assembly Bill 2326

State: California

Summary:

Assembly Bill 2326 prohibits the performance of a proof of execution by subscribing witness and requires a thumbprint to be entered into the Notary’s journal for any document affecting real property.

Signed:  August 27, 2012

Effective:  January 01, 2013

Chapter: 202

Affects:

Amends Section 1195 of the Civil Code and amends Sections 8206 and 27287 of the Government Code

Changes:
  1. Prohibits the performance of a proof of execution by subscribing witness on any document affecting real property.
  2. Requires a thumbprint to be entered in the Notary’s journal for any document affecting real property.
Analysis:

Assembly Bill 2326 expands the journal thumbprint requirement to include and prohibits the performance of proofs of execution by subscribing witness on any document affecting real property. Enactment of this legislation is a positive development for those, like the NNA, who are proponents of journal thumbprints and limiting proofs of execution. However, the legislation will be very difficult for Notaries to comply with because a “document affecting real property” is very broad. Currently, California Notaries know that journal thumbprints are required for all powers of attorney, deeds, quitclaim deeds, and deeds of trust affecting real property and that they cannot perform a proof on powers of attorney, grant deeds, mortgages, deeds of trust, quitclaim deeds and security agreements. Documents requiring journal thumbprints and prohibited for proofs are either specified by name or document type. As an example of just how broad this new provision is and how difficult it will be to implement, consider: If an individual executes a living trust and the trust instrument places property into the trust, the signer of the trust would have to place his or her right thumbprint in the Notary’s journal and the document could not be proved by a subscribing witness. Looking at the title of the instrument (in this case a living trust) would not adequately inform a Notary that a thumbprint is required or that it is a document for which a proof of execution may not be performed. The Notary would have to read the document to see if it affects real property or ask the signer if it does so. To help with this problem, the NNA is compiling a list of documents affecting real property that it knows will require a journal thumbprint, but by nature any such list will be incomplete.

Read the bill text.

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