PRIA Develops Papering-out Paper
January 12, 2021
The Property Records Industry Association (PRIA) has developed a document that explains papering-out definitions.
The document, which is under a 30-day comment period, includes applicable background information and, by reference to PRIA’s website, state statutory citations. A sample certification page is also included in the document.
Comments will be accepted through Jan. 20, 2021.
PRIA supports efficient and secure processes—including papering-out—in the property records industry ensuring the recordability of documents. Papering-out enables the recording of electronically executed documents in jurisdictions that do not or are unable to accept electronic documents. Papering-out also may be necessary if a signer who doesn’t have access to, or chooses not to, sign electronically. This also provides an option in the event of unexpected technical difficulties in the recorder’s office.
According to PRIA, the papering-out process generally includes three steps:
- An authorized person prints the electronic document. This printout should be the entire document, including any notarizations applied to the document by an electronic or remote notary.
- The notary attaches a Certificate stating that the printout is a true and accurate copy.
- The paper document with the new “Certification” is then submitted for recording.
The document also outlines considerations for not recording a papered-out document:
- Could delay a recording, which could have financial consequences, e.g., penalties and tax implications.
- May affect establishing lien priority; typically, the first lien recorded has priority.
- Can leave gaps of ownership or “clouds” in the chain of title raising questions about the owner’s legal claim to the property.
- Could leave the property owner exposed to tax liens and sales because constructive notice of their property ownership rights has not been established.
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