Senate committee adopts amendment and advances bill to tighten title recording identification to deter property fraud

Senators on the City, County & Local Affairs Committee adopted an amendment and advanced Senate Bill 406 on a voice vote after a lengthy presentation and public comment on efforts to deter property title theft.

Senator Clark, sponsor of SB 406, said the bill is intended to strengthen “title security” and reduce incidents where someone forges a deed and attempts to transfer property they do not own. The amendment clarifies which individual counts as the “grantor” for identification purposes — listing trustees of trusts, members of LLCs, presidents of corporations and attorneys-in-fact acting under a power of attorney — and removes a requirement that a copy of a grantor’s driver’s license be recorded with the deed. Instead, copies of identification will be maintained by the circuit clerk under seal and not included in the public deed record, the sponsor said.

Michael (Micah) Bono, identified as with the Saline County Circuit Clerk’s Office and representing the Circuit Clerk Association, and representatives of the Arkansas Land Title Association described the change as one part of a broader effort by clerks and title professionals to deter “seller impersonation fraud,” in which someone poses as an owner and records forged documents. Bono said some circuit clerks are piloting software and alert programs to detect suspicious recordings and fraudulent notary stamps.

Citizen Paul Hayes testified that the current draft “doesn’t prevent title theft,” and urged reinstating stronger measures from an earlier version of the bill, including a registry-based “freeze” that would require in-person transfer or trigger sheriff notification. Hayes said the freeze idea would allow homeowners to pay a one-time or nominal fee to require any transfer to be executed in the clerk’s presence; he argued such a mechanism would make Arkansas less attractive to title thieves. Senator Clark acknowledged the revised bill “is not nearly as good as what Mr. Hayes would like, but it’s a start.”

Supporters said the objective is deterrence and to create investigative leads if a fraudulent deed is recorded; Kyle Sylvester, Washington County circuit clerk and legislative chair for the Arkansas Circuit Clerk Association, said the identification retained by clerks “gives us a starting place” to investigate bad actors. The sponsor added the Uniform Law Commission has formed a study group on property fraud, and any future federal or multi-state model laws could inform additional state changes.

The committee first voted to adopt the amendment and then passed SB 406 as amended by voice vote; no roll-call tally was recorded in the committee minutes.

The bill’s supporters and opponents said further work likely will be required in future sessions to address remaining gaps, including citizens’ proposals for immediate-transfer freezes and broader state-level enforcement resources.