CA Regulatory Summary

From WFG Wiki

Licensed Entity:


See Attached HUD Sample for Additional Information

Banking Information

  • Checks stale dated after ___ days of issuance
  • Good Funds Law All funds must be cleared – no de minimus amount
  • Disbursements Requirements <<INSERT IF WFG REQUIRES CD?>>
  • Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds)


  • Who can prepare the HUD
  • Who can sign the HUD (EO/LTP/Attorney) EO – but not a licensed designation
  • Who orders hazard insurance Customary -
  • When is transaction consummated for new HUDS
  • Record before/after disburse -- Record then disburse
  • Filed/restricted escrow rates -- Filed Escrow Rates
  • Record retention requirements
  • Is an attorney involved in the closing -- No
  • Who can handle loan document signing -- Notary is acceptable
  • Doc Prep Restrictions -- No; completion of standard documents is not UPL
  • Use Escrow Instructions or not -- Yes
  • Use Estimated HUD or Final -- Estimated
  • Pass-thru charges -- Permitted
  • Rates Inclusive or not -- Inclusive of search and exam
  • Up Charging -- Must charge filed rates
  • Junk Charges -- Must charge filed rates, Premium includes search and examination so no separate fee permitted .
  • Special HUD Requirements
  • Special Disclosures NHD(?)
  • CPL -- Yes
  • UPL Issues -- No
  • Joinder of non-titled spouse -- Yes
  • Survey Required
    • Purchase – No
    • Refinance – No
  • Withholding -- CAL FIRPTA requires withholding of three and one/third percent of the sales price.


  • Required Yes – annual; additional reports required filed quarterly with Commissioner; DOI can conduct an on-site audit

Recording Process

  • E-recording County list of e-recording attached
  • Record before disbursement Record first
  • Special recording procedure

Recording/Document Requirements

  • Marital Status Stated Yes
  • Transfer Tax Yes
  • Mortgage Tax No
  • Address for grantor/grantee/property Property address on 1st page
  • Witnesses Not required
  • Names typed/printed Yes
  • Prepared by/return to Preparer not required
  • Notary Stamp/requirements California All-Purpose Acknowledgment required
  • Parcel or tax index number Required on 1st page
  • Recitation of Consideration
  • Derivation Clause Required
  • Corporate Signatures/Attestation
  • Ink Color/Font Black or blue; 10 pt minimum
  • Legal Description Include state, county and municipality in 1st paragraph
  • Margins 2 ½” x 5” top right corner 1st page
  • Other Special Recording: PCOR required with Deed; Recording coversheet required in most counties

Document Types

  • Conveyance -- Grant Deed
  • Security Instrument -- Deed of Trust
  • Release -- Deed of Reconveyance


  • Tenants in Common -- Yes
  • Joint Tenants -- Yes
  • Tenancy by Entireties -- No
  • Community Property -- Yes
  • Homestead -- Yes
  • Joinder of Non-titled Spouse -- Required unless "sole and separate property"


  • Taxes Levied
  • Taxes due 11/1; 2/1
  • Delinquent 12/10; 4/10

Commitment/Policy Special Requirements

  • Who can sign Commitment/Policy -- No restrictions
  • Other

Payment Customs

Largely a matter of contract:

  • Owners policy custom varies from county to county from seller paid to buyer paid to split 50/50;
  • county transfer tax is generally paid by the seller; as to city transfer tax either the seller pays or split 50/50; seller generally pays for recording the deed and buyer for the deed of trust;
  • survey is paid by party that needs/requests it;
  • closing/settlement/escrow fees as to most counties, but not all, are paid by buyer or split 50/50.

Post Closing Requirements

  • Recon follow up required