A bill on Texas Gov. Greg Abbott’s desk could give county clerks new tools to combat deed fraud, but one industry expert says the measure doesn’t go far enough to protect against scams carried out online.
Senate Bill 15 — approved by the Texas Legislature in August — would require clerks to ask for identification when property transactions are filed in person.
It also imposes stiffer penalties on those who commit title theft or fraud — including fines and possible prison time.
The legislation is similar to Texas House Bill 648, which Abbott vetoed earlier this year citing concerns that it would create barriers for property owners without legal representation.
Jon Dovidio, vice president of business development at EquityProtect, said that while the bill is a step in the right direction, its focus on in-person filings leaves out a huge portion of modern real estate activity.
“We’re excited to see that, just in general, there’s at least a state government that’s looking to try to make a difference,” Dovidio said. “But when I first saw this law, my very first thought was that they’re talking about if you walk up to the counter and say, ‘Here’s my grant deed.’ That sounds great. But how many people actually do that anymore?”
Most deeds filed online
Dovidio pointed to county data showing that electronic filing is the norm.
“If you go to the Dallas County website, on a daily basis (in 2022), up to 67% of the county’s real estate documents were done electronically,” he said. “Tarrant County listed that they’re doing 86%. E-filings don’t go backwards. It’s just going to happen more often as we go forward.”
He said SB 15’s current scope means it may not prevent the most common types of fraud.
“I can’t imagine that if this law goes into place, you’re going to have a seasoned fraudster that literally walks up to the counter,” Dovidio said.
Fraud attempts still slip through
Under the bill, county clerks would be required to report suspicious filings to local prosecutors. But Dovidio warned that once paperwork is recorded, fraudulent transactions can still move forward.
“If the document has everything it needs, they have to record it,” he said. “They have to look at it through the lens of a county recorder, and what their job is. That doesn’t stop the crime. Depending on how quickly the fraudster has things lined up to sell the property or take out a mortgage or an equity line of credit, it’s still going to be able to go through.”
Fraudsters can also sidestep ID requirements with fake documents, Dovidio added.
“Unfortunately, with the way the world is, people are able to get fake IDs off the internet,” he said. “So they’re turning in a document, and it’s going to have a bogus ID with it.”
Working with clerks nationwide
Dovidio said EquityProtect has built partnerships with county clerks across the U.S. to strengthen safeguards.
He added that the company’s system can freeze a home’s title, forcing title companies or attorneys to verify transactions before moving forward — a model inspired by credit freezes used to stop identity theft.
“We found a solution that prevents the financial crimes from occurring,” Dovidio said. “It’s about trying to give protection to the homeowner so they don’t have to worry about it.”
California fraud attempt halted
Dovidio pointed to a recent case in California as proof of how quickly scams can unfold.
“We actually stopped a seller impersonation case last week in San Luis Obispo County,” he said. “Our system flagged a listing within two hours of it hitting the internet. It’s a new technology we have in our system. Our client got an email, got a response from us, and he reached out to me directly.
“We reached out to the agents and got the whole thing wrapped up quicker than you can imagine.”
Dovidio said Texas should look beyond counter-based safeguards and adopt preventative measures that address online fraud directly.
“(Lawmakers are) trying to do something, and that’s amazing,” he said. “But when you look at how much e-filing is going on, that number is not going to go down.”
Dovidio encouraged Texans to remain vigilant and consider their own proactive tools.
“If a property is at risk, you need to find something that is going to prevent the financial crime from occurring,” he said. “That’s what we preach — stop it before it happens.”
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