Texas Counties Required to Redact Social Security Numbers

AG's Opinion
Shockwaves rippled through the Real Estate, Mortgage and Title industry after Texas Attorney General, Greg Abbott Opinion GA-0519 was released. Styled "Release and Redaction of Social Security Numbers under the Public Information Act, section 552.147 of the Government Code," this opinion answered a Request for Opinion (RQ-0418-GA) from Fort Bend County Clerk, Dianne Wilson.

On Wednesday, February 21, 2007, the State of Texas Attorney General issued a ruling making it mandatory and not permissive for County Clerks to redact Social Security Numbers from documents before they are provided to the public via the Internet or otherwise. Failure to do so could result in criminal penalties. In response, County Clerks throughout Texas immediately stopped providing access to online documents such as Deeds, Mortgages, Liens and other recorded instruments. In addition, records in the public area of the Clerk's office have been made off limits. As reported New Braunfels Herald-Zeitung online newspaper in New Braunfels, "yellow caution tape and deputies blocked the Comal County Clerk's record books from public view on Friday."

The impact of removing public access to property records on the Internet is important. Timely access to real estate information is critical to conducting commerce in the state. Consumers, Buyers, Sellers, Title Companies, Lenders, Real Estate Agents and others involved in real estate or loan transactions will all be effected by this ruling. In addition, oil and gas landmen will find it more difficult to the access the records they need to search mineral titles.

The Texas Land Title Association and Texas Association of Realtors are concerned about how this Ruling will effect its member and are pushing for emergency legislation to address their concerns.

County Clerk Requirements
This ruling places the burden on County Clerks to redact Social Security Numbers (and other confidential information) from documents provided to the public. Many Clerks started redacting records in anticipation of this Opinion based on their interpretation of the 2005 Statute (Texas Government Code, Section 552.147). The language in Section 552.147 was vague in that it says, "A governmental body may redact the social security number..." which implied voluntary instead of a mandatory redaction. Now, based on the most recent Attorney General Opinion GA-0519, Clerks MUST redact Social Security Numbers or face criminal liability.

Practical Results
The result of the recent Ruling GA-0519 regarding the Release and Redaction of Social Security Numbers under the Public Information Act, section 552.147 of the Government Code will be:

• Consumers will seek records from sources other than the County Clerk's website
• County Clerks will need to redact ALL records. This will be a slow process because most Clerks currently lack the proper infrastructure to do so.
• Title companies will be unable to obtain records which will delay closings and increase the cost per file, and the risk of closing transactions.
• A large number of manual searches will be required to be done at courthouses and those working in courthouses will be dealing with Clerks still uncertain about what records they may legally provide.
• The County Clerk offices could turn into a complete zoo with people waiting in long lines waiting for the local deputy to read documents and redact them "on the spot."

Initially, Clerks will be managing the inquiries and complaints about why the records which were available for years are no longer accessible. In the meantime, Clerks will need to get busy redacting records if they want to continue to facilitate the free flow of commerce in their county.

Although not obvious to most consumers, unfettered access to public records has made doing business in Texas easier for transferring real estate, borrowing money and performing due diligence. Unlimited access to public records allows lenders and title companies to make sound underwriting decisions fast.

The immediate impact will be the slowing down or delay in closings of loan and real estate transactions.

We will be monitoring this AG's Opininion and the County Clerk's reactions to it so stay tuned.