Subcommittee adopts substitute to tighten notary standards, require title-alerts to curb deed fraud
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Summary
HB 163 (substitute) would require enhanced notary training, impose identity-verification duties on settlement agents, and direct clerks to offer property-record alert systems; the subcommittee reported the substitute 8-0 after stakeholder discussion and small technical questions about online training and recordkeeping.
House Bill 163 (substitute) moved through the Civil Law Subcommittee on Friday with unanimous committee action on a package of changes aimed at reducing deed fraud and identity-based title theft.
Delegate Joanna Simon, the bill’s patron, told the panel the spread of online land records and public information has made it easier for fraudsters to impersonate property owners and convey title without the owner’s knowledge. The substitute requires notaries to exercise a higher standard of care and complete a notary instruction (four hours) and related training; it also adds duties for settlement agents to collect adequate identity evidence and allows clerks’ offices to provide an enrollment/alert program that notifies owners of recorded activity on a parcel.
Stakeholders representing notaries, title professionals and realtors said they generally support the substitute and will work with the patron on technical clarifications. Martin Johnson of the National Notary Association and James Pickrell of the Virginia Land Title Association said the industry supports online training options and existing journal-keeping requirements for notaries.
Delegate Simon said the bill preserves the ability of a judge to require a hearing in wrongful or contested cases while making it easier to detect fraud early. The subcommittee adopted the substitute and reported it 8-0 to the full committee.
The bill’s supporters said the approach balances stronger verification duties with practical implementation features, including the possibility of licensed commercial instructors and online delivery of the notary curriculum.
If the bill advances, clerks’ offices would need to implement or expand alert systems and training providers would develop curricula aligned with the statutory standards.
