Auditors back voluntary title-protection program as industry warns of gaps
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Summary
House Bill 22-98 would let county auditors create voluntary property-title protection programs that delay recording transfers for up to five business days to help prevent real-estate fraud; auditors urged the tool while trustees and title industry groups said the bill needs stronger definitions and overrides to avoid unintended consequences for foreclosures and legitimate transfers.
House Bill 22-98 would permit county auditors to offer voluntary fraud or property-title protection instruments that slow transfers of ownership or require identity verification before a transfer is recorded. Committee staff explained the program could be coordinated with county treasurers and excise agents and that recording a protection instrument and its release would be exempt from certain surcharges.
Sponsor Representative Parsley recounted conversations with county auditors and FBI reports about documented title-fraud cases and framed the bill as a voluntary, modestly priced protective tool that auditors had requested. The sponsor said two amendments are forthcoming to allow treasurers to delay refunds and to define which documents auditors can delay.
County auditors and recording managers (including Thurston County Auditor Mary Hall and Mason County Auditor Steve Dunkel) testified in strong support, describing local incidents of title fraud and saying the bill would give proactive options beyond after-the-fact notices. "Property owners often ask me what I can do... Under current law, I'm not able to do anything," Steve Dunkel said, urging advancement.
Title-industry groups raised concerns that the bill as drafted would only delay — not prevent — fraud, could create a patchwork of county procedures, and might complicate nonjudicial foreclosure processes. The Washington Land Title Association and other witnesses urged more comprehensive statewide protections and clearer override and release processes to prevent legal entanglements.
County treasurers asked for a simple amendment so treasurers could also delay refunding during the recording delay period, arguing it is a necessary operational complement.
The committee heard both supportive and cautionary testimony and noted sponsor amendments to address many of the raised concerns; no committee vote was taken in the transcript.
