Georgia has strengthened its defenses against deed fraud and title theft. Governor Brian Kemp signed a new law, which went into effect early this year, that creates a wave of new requirements for those filing property-related documents and for notaries involved in electronically filing documents.
Georgia House Bill 1292 was enacted to ensure that “persons submitting electronic documents for recording provide identifying information,” according to the state legislature.
“Title theft occurs when a criminal poses as the owner of a property and sells the owner’s property or takes out a second mortgage on it. In the worst case, the home is sold and/or transferred to a new buyer. It is a complicated and expensive process to correct this, if it can be corrected at all,” the attorney general’s office said in a statement.
Under the new law, if a deed or mortgage is filed with the clerk of a superior court for recording by a self-filer — that is, a person who is not an insurance agent, attorney, bank or credit union agent, mortgage lender or servicer, surveyor or public servant — it must be submitted via electronic filing.
As part of the electronic filing, the self-filer must provide all requested information, including their driver’s license, passport, military identification card, or other type of personal identification card.
In addition, notaries are now required to confirm the identity of the signer or notarizer of the document through verification of a government-issued photo ID. Notaries are also required to maintain a written or electronic journal recording each notarial act performed at the request of a self-filer and to complete an educational course related to the new requirements.
The law also permits the owner of a property to bring an action against a person who knowingly has filed or recorded in a public record a false or forged deed or other instrument intended to prejudice the interest of transfer ownership of such property to such person. or a third party. Through this action, the law gives the owner the right to recover actual damages caused by the filing, as well as the costs incurred in bringing the action.
Another new requirement of the law is that anyone looking to purchase real estate will have to disclose the differences in price versus value in the future, with the monetary offer requiring a disclaimer stating: “This offer may or may not reflect the fair market value of the real estate. .“ If the offer is less than the prior year’s appraised value of a property, the offer must state that “this offer is less than the county appraised value for this property.”
The new law comes into effect as police continue to warn residents about scammers filing fraudulent deeds. Earlier this month, Gwinnett County police Atlanta residents notified that scammers are forging signatures and using fake IDs to file fraudulent deeds that make it appear as if a property has been transferred to them. Police encourage home buyers to conduct a search before purchasing.
