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Legislation targets rising property fraud and notary abuse

September 12, 2024 | Committee on Business & Industry, HOUSE OF REPRESENTATIVES, Legislative, Texas


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Legislation targets rising property fraud and notary abuse
In a recent government meeting, officials discussed strategies to enhance outreach to homeowners and business owners, emphasizing the need to grow their subscriber base, currently at 13,575. Collaborative efforts with the Texas Land Title Association (TLTA) and local realtor associations were proposed to ensure that vital information is shared during property closings, potentially allowing realtors to register new property owners directly.

A significant concern raised was the competition posed by private services like Home Title Lock, which charge individuals for access to property data, contrasting with the free services offered by the government. This disparity presents a challenge in attracting subscribers and ensuring public awareness of available resources.

The meeting also highlighted the issue of property fraud, particularly focusing on four key documents often used in fraudulent activities: affidavits of airship, quick claim deeds, general warranty deeds, and a newly identified memorandum of contract. The latter has been problematic as it does not require essential signatures or witnesses, leading to potential misuse.

To combat these issues, officials are considering legislative changes to the property code, mandating that all property transactions include grantor and grantee signatures, as well as witness and notary seals. Additionally, discussions included the need for clearer language in judicial review motions to facilitate judges' approval.

Concerns were also raised regarding the fraudulent use of notary seals, exacerbated by advancements in photo editing and artificial intelligence. Officials proposed increasing penalties for such fraud from a class A misdemeanor to a felony, with a minimum fine of $4,000 per instance, aiming to deter fraudulent activities more effectively.

Overall, the meeting underscored the urgent need for legislative reforms and collaborative efforts to protect property owners and enhance the integrity of property transactions.

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Scribe from Workplace AI
Scribe from Workplace AI