Lawmakers target 'deed fraud' with new legislation to fight home title theft

Lawmakers target 'deed fraud' with new legislation

Home title theft is a growing crime where crooks file fake documents with real information to get your home signed over to them. State lawmakers are working to put a stop to it.

Home title theft is a growing crime where crooks file real documents with fake information to get your home signed over to them. 

Now state lawmakers are working to put a stop to it.

What we know:

It is a crime that some law enforcement won't investigate, calling it a civil matter. But three new pieces of legislation were carried out by State Senator Royce West and State Rep. Rafael Anchia strengthens protections around deed fraud and makes it clear it is a criminal offense.

Anchia touted a series of bills called deep fraud protection, designed to try and stop theft of homes and property through the filing of fraudulent deeds.

"It really is going to empower victims to get restitution and to unwind these frauds that they've been a victim of," said Anchita.

"People steal the title to a person's home, their ranch property or their real property of any kind through the falsifying of deeds that are placed into the records and then, often times, immediately sold."

Dig deeper:

This trio of bills makes it clear that this is a crime. 

• SB 16: That strengthens statewide protection.
• SB 693: Adds penalties for notaries who prepare fraudulent documents.
• SB 647: Allow county clerks to investigate and reject suspicious filings.

If a church or an elderly or disabled person is a fraud victim, penalties can be enhanced. 

Local perspective:

Jessica Layton is in the middle of a fight to get back her father's home. She moved in when he died, not knowing that a fraudster was secretly stealing it with bogus filings.

"We found out a gentleman went to the county and filed an affidavit of heirship and stated that I was deceased, so he was the next of heir," said Layton. 

"And then he filed a special warranty deed two days after that, transferring it to an LLC which sold it to another LLC, and so they were able to do deed fraud on my home stating that I was deceased."

Layton and her family were evicted, with their belongings on the street. She said the police told her this was a civil matter and there was nothing they could do.

"This has been a nightmare to say the least," said Layton.

What they're saying:

"Different law enforcement agencies take different approaches to how they view and investigate crimes. I would respectfully disagree that this is purely a civil matter. First of all, it is a civil matter, and it is a crime. That's how we've been prosecuting those cases here in this courthouse for years now," said Dallas County Assistant District Attorney, Phillip Clark.

"It is a rising issue AARP hears about across the country. We are really concerned about the fraud losses and the significant impact on older Texans," said Kathy Green with AARP.     

Dallas County clerk John Warren says the new laws will be a deterrent.

"This has been an issue that has plagued Texas well, not just Texas, but citizens all over the country," said Warren.

What's next:

County clerks statewide currently have a property fraud alert system. You can register with the county clerk’s office. It's free. The new legislation goes into effect three months after the special session ends.