The real estate market in Los Angeles County is no stranger to challenges—but a potential county-wide workers’ strike could bring an unexpected obstacle for agents, escrow officers, title companies, lenders, and, most importantly, buyers and sellers.
With over 55,000 LA County workers, including many at the Registrar-Recorder/County Clerk’s Office, threatening to strike, the real estate industry could face delays in document recording, escrow closings, refinancing, and more.
Let’s break down what’s happening, how it could impact real estate transactions, and what you can do to stay ahead of the curve.
⚠️ What’s Behind the Potential Strike?
Members of SEIU Local 721, the union representing a large swath of Los Angeles County employees, are currently in negotiations with county officials. These employees are demanding cost-of-living adjustments, increased staffing, and better working conditions, citing burnout, understaffing, and stagnating wages.
Union members have already participated in “practice picketing” and limited job actions, signaling a potential full-scale work stoppage if negotiations don’t make progress.
Workers Involved May Include:
Clerical staff at the LA County Registrar-Recorder/County Clerk's Office
Support personnel in real estate documentation, marriage licenses, and notary services
Employees who process vital records, title documents, and trust deeds
This office is crucial for real estate professionals, as it handles the recording of all real estate-related documents in LA County—including grant deeds, trust deeds, liens, and reconveyances.
🏠 How Could a Strike Affect Real Estate Transactions?
Here are the specific bottlenecks that could arise if these county employees strike or services are delayed:
1. Document Recording Delays
Real estate transactions legally close when recorded with the county. If the Recorder’s Office is closed or operating with reduced staff:
Grant deeds, trust deeds, and lien releases may not be recorded on time.
Buyers may not legally own the property until documents are recorded.
Sellers may experience delays in fund disbursement.
⏳ Effect: Escrows could be prolonged unexpectedly, impacting move-in/move-out dates, mortgage payoff schedules, and more.
2. Delayed Escrow Closings
Escrow officers typically wait for confirmation that documents have been recorded before officially disbursing funds and calling a deal “closed.”
Without recordings, escrows may remain open for days or weeks.
Clients expecting same-day keys or wire transfers may experience frustrating delays.
Buyers using loan financing could risk rate locks expiring or loan documents needing re-signing.
3. Impact on Title Insurance
Title companies rely on real-time recording updates to issue title insurance. If recordings are delayed:
Title companies may withhold issuing final policies until documents are confirmed.
Buyers could risk gaps in title protection, especially if legal ownership isn’t yet recognized by the county.
Some title companies offer “gap insurance” to cover this delay, but not all do. It’s vital to ask.
4. Refinance and HELOC Delays
The county must record documents for new liens, such as those tied to:
Home equity lines of credit (HELOCs)
Mortgage refinances
Second mortgages
If recordings are stalled, lenders may hold back funds or cancel pending closings altogether.
5. Legal and Financial Risk Exposure
Delayed recording could create gaps where fraudulent liens, second sales, or identity theft can occur. Until documents are recorded, the new buyer or lender does not have first legal priority—a serious risk in a highly competitive market.
📅 How Long Could a Strike Last?
There’s no telling how long a strike could go on—it depends on the progress of negotiations and whether temporary staffing is brought in to cover essential roles.
In previous labor actions, some departments were slowed for a few days, while others were backlogged for weeks. Since real estate relies on seamless, time-sensitive coordination between multiple parties, even a 48-hour delay can have serious consequences for closings and funding.
🛡️ What Can Agents and Clients Do to Prepare?
If you’re an agent, lender, or buyer/seller in escrow or planning to go into escrow soon, here are proactive steps to reduce the impact of a potential strike:
✅ 1. Communicate Early with Title and Escrow
Ask your escrow officer:
Are you offering gap coverage?
What’s your process if the Recorder’s Office closes?
Can closings be rescheduled or advanced to beat a strike?
✅ 2. Adjust Deadlines in Purchase Agreements
Consider adding custom language or contingencies like:
“In the event of a labor-related delay in document recording, all performance deadlines shall be extended to the next available business day after full county services resume.”
Your broker or legal advisor can assist in drafting this clause.
✅ 3. Close Early If Possible
If you're days away from closing, explore if the buyer and seller are willing to accelerate closing before the strike date. Even closing one day earlier could make a big difference.
✅ 4. Prepare Clients for Possible Delays
Transparency builds trust. Let your buyers and sellers know:
There may be county-related delays beyond your control.
You’ll provide updates as soon as you receive them.
You’re working closely with title/escrow to minimize impact.
✅ 5. Stay Informed with Official Updates
Bookmark the following resources:
🏛️ LA County Registrar-Recorder/County Clerk
Real-time updates on county service disruptions:
👉 https://lavote.gov
🧑⚖️ SEIU Local 721 (Union Site)
Strike announcements and updates on negotiations:
👉 https://www.seiu721.org
📰 LA Times Coverage on Labor Disputes
Track news related to government services and worker actions:
👉 https://www.latimes.com
🧠 California Association of Realtors® (C.A.R.)
Legal Q&A and hotline for real estate professionals:
👉 https://www.car.org
📣 Final Thoughts: Stay Calm, Stay Flexible
Labor actions are never ideal—but they’re often resolved with compromise. While this potential strike could bring temporary disruption to the real estate process, preparation, communication, and flexibility will help keep your transaction on track.
If you’re currently in escrow or planning to list a home soon in Los Angeles County, feel free to reach out for a personalized plan on how to navigate these changes. Real estate is always about problem-solving—and with the right team, even a strike won’t stop your sale.
Have questions or concerns about how the LA County strike could impact your real estate deal?
📞 Call or 📧 email us anytime—we’re here to help you close with confidence, no matter what.
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