COMMENTARY: Can a thief steal the deed to your house?

Over the years in other jurisdictions, there have been reports of unscrupulous people filing mechanic’s liens against properties under a false claim that they had performed work on or delivered materials to the property. Then there are the ex-spouses who file liens under a false claim that there was a failure to pay child support or alimony. Finally, there are the tax protestors who file false liens or deeds against the property of government officials to retaliate against tax-law enforcement officials. Those schemes have been around for a long time. In most instances, the perpetrators are prosecuted and additional safeguards and statutes have been put in place to combat them.

These new schemes have been targeting senior citizens and, in some instances, owners of vacant or abandoned properties. In these schemes a quit claim deed with a false signature of the owner coupled with a negligent or complicit notarization is recorded against the property. Once recorded, the perpetrator immediately tries to sell the property to an unsuspecting buyer who might fail to fully review the chain of title to the property. The perpetrator might temporarily get away with the scam, but when caught the perpetrator will face civil or criminal liability.

It is natural and proper to focus on the perpetrator. But perhaps we should give more attention to the notary who attests that signature. Under current law a notary is required to verify that the person who signed it presented valid identification, that the person signed it in his presence, and that the person signed it willingly and voluntarily. In that sense, the notary is the gatekeeper for the public trust. One step would be to require the notary to keep a permanent log of everyone whose signature is notarized, including recording the type of ID used to verify the identity of the person. This notary log is currently required in a number of other states, including California, Texas, Colorado and Missouri.

There is another preventative system in place. The Montgomery County Recorder recently discussed with me the Fraud Alert Notification System (“FANS”) that was recently adopted. This system enables families to register their property into the FANS data base. Then the family is alerted anytime a deed, mortgage or lien is filed against the property. The registration is free and it may be a real comfort to families, especially remote families of our senior citizens.

Home ownership in the United States is one of our cherished goals. That makes any attempt to defraud someone of their home such a despicable crime. Our prosecutors should be vigilant about protecting home ownership and I am confident that they are. Meanwhile, there are things that the legislature can do and that homeowners can do to be even more vigilant.