County Recording Fees Are Barriers. And They’re Getting Higher

Each year, the attorneys at the Maryland Volunteer Lawyers Service help hundreds of people straighten out title issues — mainly, people living in multigenerational homes. They start by looking up county records. Quite a few of their cases involve straightening out “tangled titles” for families who have not been able to handle the costs of probate.

Maryland counties have long allowed free, online access to deed records. Now, Maryland’s State Archives policy is changing. People and legal groups will need to pay fees. And they’re going to add up, say the volunteers.

Citing Affordability Goals, Maryland Advocates Push Back

Sure, court buildings keep records open to the public. But working people can’t always get to them during the business hours. And people aren’t allowed to print out court records — or even snap pictures of them.

Along with lawyers who devote pro bono hours to community work, Maryland’s bar association is pushing back against the fee increases. And their pushback is delaying the increase in charges.

At least, say the attorneys, non-commercial requesters should get at least some of the records they need for free. After all, they point out, Governor Wes Moore has publicly expressed the goal of increasing affordable and accessible housing.

Wisconsin Counties Follow State Open Records Law—Slowly

Wisconsin law says people have open access to county records. Great! But here’s the rub.

The state government sets a limit of 10 working days for a “simple request for a limited number of easily identifiable records.” So, what if an agency deems a request not-so-simple? Or if it deems a necessary document harder to identify? Then, response times can drag.

Wisconsin’s public records law directs agencies to complete their responses to records requests “as soon as practicable and without delay...” Here again, those instructions give no set deadlines.

There is not a lot of clarity in the Public Records Law Compliance Guide, published back in 2019 by Wisconsin’s Department of Justice. It states that “10 working days generally is a reasonable time” for an agency to answer a “simple request for a limited number of easily identifiable records.” For more complex requests, what’s reasonable depends on “the staff and other resources available to the authority to process the request” and other factors.

Now, advocates are asking Wisconsin to impose clear deadlines on offices. And they want a fair fee structure. Taxpayers already fund records offices. Yet Wisconsin agencies may charge fees to look up and copy records. This makes it harder for the public and their advocates to get documents.

Increase Fees Responsibly, Say New Jersey Housing Advocates

In New Jersey, advocates do support raising local fees — for luxury home sales. The revenue could help support affordable housing, and bolster support systems for residents who either struggle to pay monthly rent, or have trouble saving for a down payment on a home.

Indeed, Governor Phil Murphy’s proposed budget would raise the tax rate for real estate sales of at least  $1 million to 2%. For homes sold for more than $2 million, New Jersey would make that 3%.

The existing structure imposes a surcharge of 1% on homes sold for above $1 million, which buyers pay. There’s also a deed transfer charge of $6.05 for every $500 on a sale of at least one million dollars. 

If the New Jersey legislature agrees to raise the supplemental fee, there’d be an additional $322 million in 2026 for affordability initiatives. Advocates say the additional funds would empower New Jersey to create affordable units, and keep helping residents who are most vulnerable to losing their homes. 

Washington State Also Raised Fees to Support Affordability

Washington is directing money from recording charges to support those at risk of losing their homes. As we’ve seen, supporting affordability in one area can take its toll on other areas. And the revenue is nowhere near enough to keep roofs over vulnerable residents’ heads.

In any case, Washington home buyers now pay $200+ for the first page that’s recorded, and $1 for each additional page. That puts Spokane and Seattle among the top fee-charging markets. Document recording for home purchasing or financing can literally cost hundreds of dollars.

The pandemic created a lot of momentum for raising fees in Washington and elsewhere. People were worried about loss of income and mortgage defaults. States have also been trying to shore up investor-owners whose renters couldn’t pay. Now that the pandemic-related shutdowns are becoming faded memories, the calls are rising to bring fees under control. 

American Land Title Association (ALTA) Wants Flat Recording Fees in More States

In 2013, the federal government’s Consumer Financial Protection Bureau published its Integrated Mortgage Disclosure Rule. The rule empowers a buyer to know the full costs to expect on closing day. By law, buyers must receive the required information three days before the mortgage is closed.

But are these hard numbers, or estimates?

“Recording costs,” ALTA observes, “are one of the few fees subject to strict accuracy requirements for lenders.”

To form an accurate fee disclosure, the lenders must watch a number of variables, such as:

• Whether power of attorney fees must be included for the transaction.

• If the state charges a fee through a rider.

• If charges for including co-borrowers apply.

• The potential for human error.

Who benefits from predictable, flat fees? Home buyers, of course. We all need to know what we’ll be charged by the parties involved in our deed transactions. Government offices benefit too. Predictable fees support effective budget planning and make services easier for the public to understand and follow, so as to not let their filings be delayed or rejected. Financial institutions benefit when costs are straightforward. So do any companies that might have a role in closing.

What to Watch: State Lawmaking Trend to Simplify Surcharges

Fees can be standardized according to the number of pages in a given recording, or the number of certain reference points in a document. And standard fees make deed transfers easier. That’s already the case in D.C., Arizona, Georgia, Kentucky, Idaho, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, the Carolinas, the Dakotas, Utah, and Wisconsin.

Even where document recording fees are relatively light, they must be accurate so as not to throw a closing off track. And the cost of filing legal papers in the public records shouldn’t be confusing.