In today's post let’s talk about real estate fraud and how states can help prevent it.
Recently, a scammer nearly transferred Graceland, Elvis Presley’s former home, using a forged notary stamp with a Florida notary’s info. The real notary had to deal with legal troubles due to this fraud.
Real estate fraud is a serious issue, and while some suggest more training or stiffer penalties for notaries, that doesn’t address the real problem. Education is important, but determined criminals will still find ways.
Notaries aren’t the main cause of real estate fraud. For instance, Texas receives fewer than 750 complaints annually against its 450,000 notaries.
So, what can actually reduce real estate fraud?
Here are some ideas state representatives could consider implementing :
1. Property Notification Service
Some states offer services where homeowners receive email alerts when there’s activity on their property records. While it won’t stop fraud, it allows homeowners to act quickly if something looks suspicious.
2. Freeze Property Transfers
Like freezing credit reports, homeowners should be able to freeze property transfers to reduce fraud risk.
3. Vetting by County Clerks
Many county clerk offices lack resources to verify property transfers properly. Strengthening this vetting process could catch fraud before it’s finalized.
4. Hold Notary Stamp Vendors Accountable
It’s too easy to buy notary stamps online without proper verification. States should require vendors to confirm notary credentials before selling stamps and penalize those who don’t.
How Can Notaries Help?
Physical Presence of the Signer:
Notaries must verify the signer is physically present to ensure the signer’s identity and willingness.
Verify IDs:
Always check a valid government-issued ID to confirm identities and prevent fraud.
Buy Stamps from Verified Vendors:
Notaries should purchase stamps only from vendors who properly vet buyers.
Keep Detailed Records:
Accurate records create an audit trail that’s vital if fraud is suspected.
Control Your Notary Stamp:
Notaries should securely store their stamps to prevent misuse.
Refuse Suspicious Transactions:
Notaries should refuse to notarize if they detect signs of fraud.
Real estate fraud is a growing issue, but notaries aren’t to blame. Implementing property notifications, transfer freezes, and better vetting can make a big difference. In order to make changes, the mortgage industry and everyone involved in real estate transactions need to advocate for these solutions to protect homeowners and ensure safer transactions.
If you want a notary who will protect you from real estate fraud, pick up the phone and give Girl Friday Notary Services a call today!
GIRL FRIDAY NOTARY SERVICES
Notarization may be boring, but I'm not!
253.208.2792
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