TACIR draft report recommends stronger notary ID rules, journals and a register‑of‑deeds review process to reduce deed fraud
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Summary
A draft TACIR report on real-estate fraud recommends requiring in-person notaries to use government-issued ID, maintain multi-year journals, receive initial notary training, and authorizes counties to establish fraud referral and review processes for deeds similar to Illinois.
Tennessee Advisory Commission on Intergovernmental Relations staff presented a draft report May 20 recommending statutory and administrative changes intended to reduce real-estate fraud and protect property owners.
Bob Morio, presenting the draft required by Public Chapter 941 (2024), summarized national and state indicators of deed and title fraud and proposed three primary recommendations: require instruction for in‑person notary applicants and renewals; require notaries to verify identity with government‑issued credentials and maintain a notarization journal for at least five years with specified entries; and authorize counties to establish fraud-referral and review processes allowing a county register of deeds to refer suspicious instruments for administrative review before recording.
The draft notes that Tennessee currently allows a notary to identify a signer based on personal familiarity or a credible witness and that, unless a notary charges a fee, a journal is not required for in‑person notarizations. Morio cited other states that require training, examinations, or multi‑year journals; he cited California’s prohibition on relying solely on personal knowledge for identity verification and other states that require detailed journal entries and retention periods. He said Tennessee registers and law‑enforcement officials cited local instances of attempted fraudulent filings and that TBI and local prosecutors report theft‑of‑dwelling incidents in multiple counties.
Commissioners asked whether fraud mostly stems from negligent notaries or from counterfeit documents and fake stamps. Morio said available case reports show a mix and that precise breakdowns require case‑by‑case review. Some commissioners urged focusing on strengthening the Register of Deeds’ ability to flag and initiate review of suspicious documents. No vote was taken; commissioners provided feedback and staff will refine the draft for later consideration.
Why it matters: notary practices and the recording process are two checkpoints where fraud can be detected or prevented; statutory adjustments could add safeguards for property owners without changing the underlying criminal penalties.
Next steps: TACIR staff will incorporate feedback and may propose draft statutory language for consideration in a future meeting or by the General Assembly.
