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Draft report proposes notary training, identity verification and registers-of-deeds review to curb real-estate fraud
Summary
The commission reviewed a draft report recommending in-person notary training, mandatory ID verification and a five-year journal retention requirement, plus authority for register of deeds to refer suspicious filings for review to reduce deed fraud.
Commission research staff presented a draft report on real estate fraud and proposed three principal reforms to help protect property owners.
Bob Morio, who presented the draft prepared under Public Chapter 941 (Acts of 2024), said the report finds fraud is difficult to quantify but prevalent enough to merit statutory changes focused on notaries and registers of deeds. The draft recommends that Tennessee require in‑person notaries to complete an instructional course on notary laws and fraud prevention, require notaries to verify identity with government-issued credentials (with personal-knowledge identifications limited or accompanied by credential), and require notaries to maintain a journal of in-person notarizations for at least five years with specific entries recorded.
The draft also recommends authorizing a register-of-deeds referral-and-review process — modeled on Illinois — to allow local recorders to flag suspicious instruments and request administrative review before an instrument is fully recorded.
Members asked whether the problem stems from negligent notaries or counterfeit stamps and whether fraud is primarily online. A member who works in title observed that online, fake-notary schemes are a leading concern, while many in-person notaries appear to follow standard practice. Presenters said case-level distinctions are difficult because incidents of deed fraud are prosecuted under a variety of statutes (forgery, wire fraud, identity theft), making consolidated statistics scarce.
Why it matters: fraudulent deed filings and notarizations can strip property owners of title and impose substantial legal burdens; the draft seeks modest, targeted steps to make notarizations and recording more robust without unduly burdening legitimate notaries.
Next steps: staff will refine the draft with feedback from members; commissioners suggested collecting more case-level data and considering cost and implementation details (including whether counties’ commission approval processes or fee structures would be affected).
