RECORDING A REAL ESTATE TRANSACTION
When a register records a document relating to a real estate transaction, including any type of deed or lien with respect to real property, this bill requires the register to do the following:
(1) Verify the identity of the person recording the document by requiring the person to present an identification card. If the document is recorded in person, then the register must make a physical copy of the identification card to be recorded and maintained as part of the register's permanent records. If the document is recorded electronically, then a legible, digital copy of the identification card must be submitted with the document to be recorded and maintained as part of the register's permanent records;
(2) Record as a permanent record with the name and description of the document including the name and address of the person recording the document as indicated on the identification card, the type or category of the identification card, and the unique identifying series of numbers or letters, or both, associated with the identification card; and
(3) Not less than 10 business days after recording the document, mail notice of the transaction to the last person of record who paid property taxes on the real property that is the subject property of the recorded document. The notice must include the information recorded under (2) above.
NOTARIZING A REAL ESTATE TRANSACTION
When a notary public notarizes a document relating to a real estate transaction, including any type of deed or lien with respect to real property, this bill requires the notary public to do the following:
(A) Verify the identity of the person notarizing the document by requiring the person to present an identification card. If the document is notarized electronically, a legible, digital copy of the identification card must be submitted with the document to be notarized and maintained as part of the notary public's permanent records; and
(B) Record as a permanent record with the name and description of the document including the name and address of the person notarizing the document as indicated on the identification card, the type or category of the identification card, and the unique identifying series of numbers or letters, or both, associated with the identification card.
If a notary public fails to comply with (A)-(B) above, then this bill provides the following penalties may be imposed:
(1) For a first and each subsequent violation, the notary public is subject to a fine of $500, to be paid to and collected by the secretary of state;
(2) For a second violation, the notary public's commission must be revoked for one year; and
(3) For a third violation, the notary public's commission must be revoked permanently.
ON APRIL 9, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2448, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, require the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) to conduct a study and compile a report to be submitted to the general assembly on real estate fraud in this state. The study must investigate the prevalence of real estate fraud in this state, the different schemes used to perpetrate real estate fraud, the methods used by other states to combat real estate fraud, and the best practices for local government officials in registering documents related to real estate transactions. The report must provide a detailed summary of the study and provide suggested statutory revisions that are designed to reduce the risk of real estate fraud for property owners in this state.