Top 5 Document Rejection Reasons and How to Avoid Them

Top 5 Document Rejection Reasons and How to Avoid ThemNovember 16, 2017

Jason StaleyJason is the product manager of eRecording Solutions. He works with the CSC® development team, recording jurisdictions, title underwriters, and lending institutions to develop solutions and products to better serve the real estate document recording market.

Meet your presenters

Matt NettaMatt is a national consultant and manager who’s dedicated to CSC’s eRecording program. He works with leading title underwriters, real estate firms, and lending institutions throughout the country. Matt frequently presents to real estate bar associations and state land title associations to share information and understanding about electronic document recording best practices. He’s also engaged with title underwriters and their counsel members to provide training on the effects and benefits of eRecording in the real estate and title industries.

Proprietary and Confidential 2

Agenda

• Introductions

• What are the most common reasons?

• Rejection reasons: Why does this happen, and how can it be avoided?

• How a system like CSC eRecording can help you reduce rejections

• Demo

• Q&A

Where We are Today

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We serve more than 180,000 businesses, including

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4November 22, 2017 | Proprietary and Confidential

CSC Conducted Analysis of Most Common Reasons


• CSC offers paper recording and eRecording

• Looked at rejections in paper

• Assessed nationally


CSC Quick Guide of Common Document Rejections

Incorrect

Fees

Missing legal

description

Incorrect

office or

jurisdiction

Missing or

illegible

notary

information

Missing or

incorrect

book, page,

or instrument

number

Many jurisdictionsrequire exact fee

payments, but often exact fees are

difficult to calculate

The legal description is

missing from the document and is

required for recording

The document was sent to the wrong office or recording

jurisdiction

This could be the notary stamp or

signature

Many documents have to reference

another document by book, page, or

instrument

1 2 3 4 5Missing

PIN

The document is missing the ParcelIdentifier Number

(PIN)

6

Incorrect Fees

1

Incorrect fees

In paper recording, check is attached to documentation.

Even if the document is perfect, if payment is off by a penny, the document will be rejected by the recording office.

Why Does This Happen?


Accurate fees are difficult to calculate.

• Fee schedules are complicated

• Even some of the best calculators struggle

• Some counties do not allow for not to exceed (NTE) checks.

Miscalculations:

• Page numbers

• Indexing requirements

• Document type

• Consideration amount

• Loan amount

How Can Filers Avoid This?


Start eRecording

• Payments are fronted for you

• Don’t have to estimate fees

• Paid upon record

Missing Legal Description

2

Missing Legal Description

The legal description is missing from the document and is required for recording.

Typically includes:

• Description of land

• Metes and bounds

• Lot and block survey

• Fractional designation

• Quantity of land



Two types of legal descriptions:

• Long

• Short

Each jurisdiction will determine what is required.

Oftentimes, legal descriptions are missed because they are treated like an appendix or simply added to the end of the document.



Check, check, and check again.

• When eFiling, the legal description is sometimes required in the indexing.

• This requirement helps make it easier to remember to add it.

• However, just because it is not required for indexing does not mean it is not required.

Incorrect Office or Jurisdiction

3

Incorrect Office or Jurisdiction

The document was sent to the wrong office or recording jurisdiction.



Similar or identical county names

• 31 Washington counties

• 26 Jefferson counties

Jurisdictions in jurisdictions

• St. Louis County

• The City of St. Louis

Jurisdiction split into districts

• Berkshire County, MA is divided into three regions: North, Middle, and South



• Navigating these scenarios is tricky, especially if you are not familiar with a specific jurisdiction.

• Research is your best weapon. Look up an address and validate the location.

• In ePrepare, search by county first. The state shape will display in lookup.

4Missing or IllegibleNotary Information

Missing or Illegible Notary Information

Sometimes documents are sent that are missing, or have illegible, notary information.

Includes:

• Notary stamp

• Signature



• Seal or signature is too light

• Poor scanner quality

• Aberrations caused by scanner



• A tool like CSC’s eRecording solutions can help you darken up the seal or signature element.

• Viewing window can help users identify if image is legible.

Missing or Incorrect Book,Page, or Instrument Number

5

Missing or Incorrect Book,Page, or Instrument Number

• Many documents have to reference another document by book, page, or instrument number.

• In this case, the document is missing the proper values to reference these supplementary documents.



Not paying attention!


Pay attention!

Missing PIN

6

Missing PIN

The Parcel Identifier Number is unique to a particular parcel within the county and comprises important coding information for the county.



Not paying attention!


• Paying attention up front will prevent issues later.

• Review the documents prior to submit

Reduce Your Rejections with eRecording Solutions from CSC

• Fewer clicks to eRecord

• Faster image upload

• Superior image tools to ensure successful recording

• Single screen management of all pages

• Mark and blemish elimination

• Billing and payment preference accommodation

• Report reconciliation

• Maintenance-free .NET framework

• SOC 2 audited, secure, web-based

DEMO:Reduce Rejections with eRecording Solutions from CSC


Questions?

Phone:

1.866.652.0111

Email:

[email protected]

Website:

www.erecording.com

Real Estate

Top 5 Document Rejection Reasons and How to Avoid Them