Ricketts

Civil Code section 2941 (section 2941) imposes certain obligations on the parties to a secured real estate loan transaction to promptly clear title to the encumbered property after satisfaction of the loan. As part of this process, section 2941, subdivision (c), requires a county recorder to “stamp and record,” within two business days from the day of receipt in proper form and with all required fees, a full reconveyance or certificate of discharge confirming the satisfaction of the obligation secured by a deed of trust. What does section 2941, subdivision (c)’s stamp-and-record requirement mean?

Contending the Legislature intended the county recorder to stamp, record and index a full reconveyance within two business days of receipt of the form, Deborah A. Ricketts and Joel Rosenberg filed putative class action lawsuits on behalf of all persons harmed by the failure of the County of Los Angeles and its registrar-recorder, Conny B. McCormack (collectively County), to fulfill their statutory duties. Following a bench trial, the trial court rejected Ricketts and Rosenberg’s interpretation of the statute and entered judgment in favor of the County. We agree indexing is a…