House committee advances bill to create escrow-based deed‑fraud alert system
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Summary
The House Committee on Government on Feb. 10 advanced HB 2842, sponsored by Rep. Patty Contreras, to create a voluntary property‑alert system run by the Arizona Department of Real Estate that would notify owners when escrow is opened on their property to help prevent deed theft.
The House Committee on Government voted to give House Bill 2,842 a do‑pass recommendation after hearing testimony that the measure would help homeowners detect and stop deed fraud earlier.
Rep. Patty Contreras, the bill sponsor, told the committee the proposal grew from a constituent’s multi‑year fight to recover a home taken through forged documents and a sale to an online purchaser. "This bill will notify property owners that escrow has been opened on their property," Contreras said, adding the system would be opt‑in and administered by the Department of Real Estate.
Survivors and investigators described how easy deed theft can be and the financial and emotional toll it imposes. Debbie Gottlieb recounted that "a 31‑year‑old criminal pretending to be my dad would sell the house to Zillow using realtors and a title company," and said the recovery took two years and tens of thousands of dollars in attorney fees. Don Carroll, a criminal investigator with the Arizona Attorney General’s Office, told the committee the problem surged after transactions began being filed electronically and described it as "a classic battle between customer service and fraud prevention." Arizona Department of Real Estate Commissioner Susan Nicholson said the department tracked more than 80 deed‑fraud cases over two years and that "87% of them would have gone through the escrow process," arguing the alert system would provide a proactive defense.
The measure would require escrow agents to transmit transaction metadata to a state early‑alert system. Nicholson described options for data transfer including an API, CSV upload or dedicated email and said the Department would match escrow reports to registered properties and notify owners with clear steps to contest suspicious transfers.
Vice Chair Fink moved the bill as amended and the committee adopted the amendment and the do‑pass motion. The committee recorded a 7–0 recommendation to advance HB 2,842 to the full House. Supporters urged the House to take up remaining statutory changes and recommended copies of informational materials accompany the bill to members on the floor.
The bill now proceeds to the full House for further consideration; the committee record includes testimony from the Attorney General’s Office and the Department of Real Estate, and supporters said additional coordination with county recorders and title companies will be necessary if the measure becomes law.