CA Assembly Bill 2143

Law

State: California
Signed: September 16, 2016

Effective: January 01, 2017
Chapter: 380

Summary

AB 2143 now allows a Notary to electronically notarize any electronic real property document that meets the requirements of Government Code Section 27201.

Affects

Amends Government Code Section 27391

Changes
  1. No longer limits the types of "digital" electronic records that may be electronically notarized and recorded with a county recorder to an instrument of reconveyance, substitution of trustee or assignment of deed of trust. 
  2. Allows electronic notarization of any “digital” electronic record that is consistent with Government Code Section 27201(a).
Analysis

When the California Legislature enacted the Electronic Recording Delivery Act of 2004, it permitted Notaries to electronically notarize three specific real property documents: substitutions of trustee, assignments of deeds of trust and reconveyance deeds. It did not authorize Notaries to electronically notarize consumer-facing real property documents such as a grant deed, quitclaim deed, deed of trust or power of attorney for real estate. At the time the Legislature imposed this limitation electronic notarization was fairly new and there were concerns about the security of these transactions. Above all, the Legislature wanted to protect consumers from fraud. However, an unfortunate byproduct of the Electronic Recording Delivery Act was that it hindered adoption of electronic notarization in California. AB 2143 removes this limitation so that any electronic real property document can be electronically notarized.

Read the bill text.

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