This bill enacts new provisions and amends current provisions of law to protect individuals from deed fraud. The bill makes it a Class B crime to record or attempt to record with a register of deeds a false deed, mortgage, lien or other instrument for which the law provides public recording or, in the process of recording a deed, mortgage, lien or other instrument for which the law provides public recording, to provide to a register of deeds false information in respect to a material fact pertaining to that instrument or impersonate the true owner. The bill also provides for equitable relief for individuals who have been impacted by a forged or fraudulently recorded instrument. The bill requires that any instrument affecting title to real property and recorded with a register of deeds must be acknowledged before a person authorized to perform notarial acts in this State, rather than an out-of-state notarial officer. The bill requires that sellers of real estate who are not residents of this State pay a $500 refundable fee to the real estate broker or other transacting agent to be placed in escrow and returned to the seller at the closing as long as the agent can certify that the agent has performed due diligence in confirming the identity of the seller. The bill requires a designated real estate broker to secure, and maintain thereafter, a surety bond in the amount of $25,000 for the benefit of the State and any person harmed by deed fraud as a result of the broker's or agency's action. The bill directs the Office of the Attorney General to create notices and publications designed to inform and educate the public regarding the risks posed by deed fraud. The bill requires the office to make these materials available to registers of deeds throughout the State and to the State Tax Assessor. The bill authorizes registers of deeds to distribute notices, publications and information about programs to educate the public about deed fraud and directs the State Tax Assessor to require that all real property tax bills contain a notice to property owners regarding the risks of deed fraud and resources available to victims.

Statutes affected:
Bill Text LD 2240, SP 960: 32.13173, 32.13198, 32.13271, 33.203, 36.301