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May 29, 2012

Proposed Regulations for E-Recording Released for Public Comment


WHITE PLAINS, NY: Last September, Governor Cuomo ended New York’s distinction as the only state that did not allow electronic recording of land records such as deeds and mortgages when electronic recording was signed into law.  And on May 22, the New York State Office for Technology (OFT) released proposed rules and regulations which will support electronic recording when it begins in late September of this year.

“The proposed rules have hit the perfect balance of providing a clear foundation on which electronic recording can begin in New York State while also offering enough flexibility so that recording offices with varied recording systems and financial practices will be able to participate” shared Westchester County Clerk Timothy C. Idoni who served on the focus group which worked with OFT to develop the rules.  “And because all of the stakeholders were invited to join in the discussion, many of the challenges electronic recording presents have been addressed.”

Electronic recording will bring many benefits.  Private sector submitters such as attorneys and title companies will see a reduction in costs as documents no longer need to be sent via messenger, overnight mail or regular mail to a recording office.  Submitters will also benefit from increased efficiency as recording times are greatly reduced, rejection reasons are communicated more quickly and the risk of document loss is eliminated.  Finally, submitters will benefit from the convenience of being able to submit documents at any hour of the day from any location with an internet connection.

Government recording officers, specifically County Clerks and the New York City Register, will see instruments move through their daily workflow more quickly and efficiently, resulting in a reduction of cost.  Envelopes do not need to be opened, staples do not have to be removed, and papers do not need to be scanned.  Rejected documents no longer need to be placed in an envelope and mailed out, reducing paper and postage costs.

Electronic recording also achieves a series of broader goals.  “Consumers are better protected when ownership and loan documents are placed on record more quickly,” shared Idoni.  “Opportunities for government transparency are increased as electronic documents can be tracked through the recording process.  And electronic recording is a green initiative which allows paperless documents, eliminates mailing supplies and eliminates the need to travel to recording offices to deliver papers,” he concluded.

To view the proposed regulations, visit http://cio.ny.gov/erecordinglaw.   For more information on the Office of the Westchester County Clerk, visit www.WestchesterClerk.com.



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