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Committee advances bill to curb fraudulent electronic deed recordings
Summary
House Bill 1039 would allow registers of deeds to accept recordings only from authorized vendors and make those vendors responsible for attorney fees when fraud leads to title litigation; the measure was advanced by the committee.
The State and Local Government Committee voted to advance House Bill 10-39 after the sponsor described growing problems with fraudulent electronic filings in registers of deeds offices.
Representative Whit Garrett, sponsor of the bill, said the measure was prompted by reports from his Sumner County register of deeds about fraudulent electronic deeds and lien releases. "We're having a real problem with electronic deeds, lien releases, etcetera, that are being filed in our register of deeds officer that are being fraudulent," Garrett said. The bill would establish an approved vendor list for electronic submissions so registers could reject filings that did not originate from authorized vendors.
The bill also would make vendors that record fraudulent electronic documents responsible for attorney fees and costs if a property owner must hire counsel to defend title, Garrett said. "It's trying to tamp down the fraudulent recording of electronic deeds," he said.
Members asked for clarification that the bill applies only to electronic filings; Garrett confirmed it does not change procedures for paper filings. Representative Pyle and others said the issue is widespread and can be costly for homeowners whose title is affected.
The committee approved the bill 21–0 to send it to the Calendar and Rules Committee.
The sponsor said additional steps may be needed in future legislation but characterized HB 10-39 as a first step to deter fraudulent electronic recordings.
