RELATING TO CRIMINAL OFFENSES -- FRAUD AND FALSE DEALING
Summary
H7551 creates a new criminal offense of real estate title fraud and adds a set of safeguards aimed at preventing forged or fraudulent deeds, mortgages, liens, and other real property instruments from being recorded. The bill defines key terms such as “trusted submitter,” “suspicious document,” and “pattern of real estate title fraud,” and it authorizes municipal recorders to delay, report, or notify parties about suspicious filings. It also makes clear that in-person deed filings are not covered by the remote-filing restrictions.
The bill further requires municipalities, beginning by specified dates in 2027 and 2028, to tighten remote electronic recording procedures and to establish a free property alert notification system for owners. That system must notify enrolled owners within ten business days when any document affecting their property is recorded, and it may provide notices by mail, text, call, or email. The bill also amends the state’s notary law to allow notarial officers to refuse a notarial act when identity-proofing requirements are not met or when the signer’s identity or consent is not sufficiently established.
Impact
The bill would amend Rhode Island’s fraud and false dealing statutes by adding new sections to chapter 11-18 and by revising the Uniform Law on Notarial Acts in chapter 42-30.1. It creates criminal penalties for real estate title fraud, including felony exposure, fines, imprisonment, and possible restitution, and it gives property owners a private right of action for damages and attorneys’ fees against those who file forged or false instruments. It also limits liability for municipal recorders and municipal employees acting in good faith, while imposing new administrative duties on municipalities to screen certain remote filings and operate property alert systems.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall posture of the measure appears protective and anti-fraud, with an emphasis on safeguarding property owners and land records. The bill’s structure suggests a policy consensus around combating deed theft and fraudulent encumbrances, while also trying to preserve the role of municipal recorders and trusted professional filers. No formal opposition or recorded vote history is provided in the materials, so there is no documented split in sentiment to report.
Contention
The main points of potential contention are the new burdens placed on municipalities and recorders, the scope of authority to delay or reject “suspicious” remote filings, and the definition of who qualifies as a “trusted submitter.” Property owners and anti-fraud advocates would likely favor the added protections and alert system, while municipalities, clerks, title professionals, and remote-filing users may be concerned about implementation costs, liability exposure, and possible delays in recording legitimate documents. The bill attempts to address some of those concerns by limiting liability for good-faith public officials and by exempting in-person filings from the remote-filing restrictions.
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