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Draft TACIR report on real‑estate fraud recommends notary training, ID rules and registers‑of‑deeds review process
Summary
A TACIR draft recommends Tennessee require in‑person notary training and government‑ID verification, require notary journals retained at least five years, and authorize county registers of deeds to refer suspicious instruments for review to prevent deed fraud.
A draft report presented to the Tennessee Advisory Commission on Intergovernmental Relations recommends new notary practices and a register‑of‑deeds review process to reduce real‑estate fraud.
Bob Morio, presenting the draft requested by public chapter 941, said deed and title fraud are difficult to quantify because prosecutions fall under multiple criminal categories, but multiple indicators show the issue is present in Tennessee. "For incidents of theft where property is reported stolen, that can even include theft of dwellings and other structures," Morio said, noting Tennessee Bureau of Investigation data that documented 185 dwellings reported stolen across 50 counties from 2019 through February 2024.
The draft includes three core recommendations: require instructional training for in‑person notaries on notary laws, ethics and fraud‑recognition; require notaries to verify identity using government‑issued identification and maintain a journal of all in‑person notarizations with specific entries; and authorize counties to establish a fraud referral and review process for registers of deeds—an approach modeled on Illinois’ referral process.
Morio said Tennessee currently does not require training or an exam for traditional in‑person notaries and that Tennessee’s online‑notary law requires electronic records and training for online notaries effective Jan. 1, 2026. The draft recommends Tennessee extend more robust ID verification and journal practices to in‑person notarizations and keep journal records for at least five years, aligning certain practices with other states.
Commissioners asked questions focused on the locus of fraud. Representative Williams said he sees many frauds online involving counterfeit notaries and fake stamps; Morio said the record‑review recommendation for registers of deeds is intended to provide an additional checkpoint when fraudulent instruments are presented for recording. The draft remains under review; commissioners did not vote and asked staff to consider questions about practical impacts, training costs and interactions with online notarization rules.
The draft is submitted for review and comment; no formal vote was taken at the meeting.
