AN ACT TO ENACT THE MISSISSIPPI DEED FRAUD PREVENTION ACT; TO AUTHORIZE A CLERK TO REFUSE TO RECORD A SUSPICIOUS DOCUMENT, TO NOTIFY THE APPROPRIATE LAW ENFORCEMENT AGENCY AND TO NOTIFY A NOTARIAL OFFICER; TO AUTHORIZE A PERSON TO SEEK DECLARATORY OR INJUNCTIVE RELIEF AGAINST A CHANCERY CLERK FOR THE REFUSAL TO RECORD A DOCUMENT UNDER THIS SECTION; TO REQUIRE EACH CHANCERY CLERK IN THE STATE TO ESTABLISH A PROPERTY ALERT NOTIFICATION SYSTEM THAT ALLOWS A PERSON TO ENROLL REAL PROPERTY OWNED BY THE PERSON IN THE SYSTEM; TO AUTHORIZE A CHANCERY CLERK TO ESTABLISH A DOCUMENT ALERT NOTIFICATION SYSTEM THAT ALLOWS A NOTARY PUBLIC TO ENROLL IN THE SYSTEM; TO AUTHORIZE A CHANCERY CLERK TO INDEX OR BY OTHER MEANS CREATE A SEARCHABLE LOG THAT INCLUDES THE CERTAIN INFORMATION FOR EACH DOCUMENT RECORDED IN THE CHANCERY CLERK'S LAND RECORDS; TO REQUIRE THE MISSISSIPPI REAL ESTATE COMMISSION TO CONSIDER INCLUDING COURSES ON FRAUD AND CYBER SECURITY TO BE TAKEN BY THOSE LICENSEES WHOSE PRACTICES MAY REQUIRE KNOWLEDGE IN COMBATING REAL ESTATE RELATED FRAUD, INCLUDING DEED FRAUD, WIRE FRAUD AND CYBER SECURITY; TO PROVIDE CAUSES OF ACTION FOR A PARTY ALLEGING DAMAGES ARISING FROM THE RECORDING OF A FORGED DEED OR MORTGAGE AGAINST CERTAIN PERSONS; TO AUTHORIZE CERTAIN DAMAGES; TO BRING FORWARD SECTIONS 97-17-41 AND 97-17-70, MISSISSIPPI CODE OF 1972, FOR POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
Impact
The legislation is designed to provide stronger protections against fraudulent real estate transactions, including mechanisms for reporting and addressing suspicions around documents submitted for recording. By requiring clerks to establish property alert notification systems, the bill empowers property owners and aims to catch fraudulent activities early, potentially saving owners from significant losses. Furthermore, it raises the standard for how documents are verified and recorded, likely leading to a decrease in potential fraud cases related to property transfers and mortgages.
Summary
Senate Bill 2751, titled the Mississippi Deed Fraud Prevention Act, aims to combat deed fraud through various regulatory measures. One of the primary provisions allows chancery clerks to refuse to record documents deemed suspicious and mandates them to notify appropriate law enforcement agencies. This act seeks to establish a clear protocol for handling potentially fraudulent documents and increasing awareness of fraud in real estate transactions. Chancery clerks will also be encouraged to implement a property alert notification system that lets property owners know when changes are recorded against their property.
Contention
The bill may face criticism regarding the practical implications of identifying 'suspicious documents' and the discretion it grants to chancery clerks. While proponents argue it's a necessary step to strengthen protections against fraud, opponents could raise concerns about the potential for clerical errors and the burden on property owners to navigate the new systems. Additionally, the requirement for clerks and notaries to engage in ongoing education regarding fraud and cyber security may be viewed as a challenge for some professionals in the field, possibly affecting the efficiency of real estate transactions.