O.C. Supervisors OK realty fraud prosecution fund

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The Orange County Board of Supervisors approved a service fee March 3 to establish a Real Estate Fraud Prosecution Trust Fund.

By state law, counties can collect a $3 recording fee for certain real estate transactions in order to provide a funding source for a specialized unit to prosecute, investigate and deter real estate fraud crimes. The recording fee, which was proposed by the District Attorney, will be collected during transactions such as deed of trust, request for notice, notice of default, etc.

The fee will expire in three years and is estimated to generate approximately $1.6 million in annual revenue. It will be deposited to an account, and the money will be restricted for use only in real estate fraud prosecution.

An advisory committee comprised of members of the real estate industry and professionals in the lending, credit counseling, escrow and title insurance industries will be formed to oversee implementation and prioritization of the specialized fraud unit.

After a year, the board will hear a report on the success rate of this program and at that time reevaluate it.

--Scott Marshutz

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