Thursday, July 24, 2008

Update for Recording Fees for Multiple Transactions in a Single Document

The Massachusetts Real Estate Bar Association sent me a notice that:
On July 13, 2008, Governor Patrick signed the FY 2009 budget which included outside sections amending Massachusetts General Laws Chapter 262, § 38 and Chapter 44B, § 8 to require additional recording fees for multifunctional documents. The Amendments provide that “when a document includes multiple references to a document or instrument intending or attempting to assign discharge, release, partially release, subordinate or notice any other document or instrument, each reference shall be separately indexed and separately assessed and additional recording fee.”

The intent of the Amendments is eliminate any confusion that may have arisen with respect to recording fees subsequent to the Patriots Resorts Corporation case [71 Mass. App. Ct. 114] and to codify the current practice of most Registries. The practical result is that if a single document discharges a Mortgage, an Assignment of Leases and Rents and a U.C.C., the recording fee will be $225.00, as if it were three separate discharges. The effect of the Amendments is retroactive to eliminate any potential claims for excess recording fees that may have been brought pursuant to the Patriots Resorts Case
 I previously posted on the Patriots Resorts Case [Recording Fees for Multiple Transactions in a Single Document]. After the case, the registries were still trying to charge multiple fees.  Now the legislature has sided with the Registrars.


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