Committee backs photo ID checks, tougher penalties to curb deed fraud

The House Committee on Government voted to give Senate Bill 14 79 a due-pass recommendation after hearing testimony from a deed-fraud victim, county assessors and the attorney general’s office.

SB 14 79 would add a photo-identification requirement for documents presented at county recorder offices and change the penalty for knowingly submitting a fraudulent deed or forgery affecting real property from a class 1 misdemeanor to a class 5 felony, staff told the committee.

Debbie Gottlieb, who identified herself as a deed-fraud victim and real-estate broker, told the committee her father’s home was stolen while in probate: “A 31 year old criminal pretended to be my dad that owned his house over 40 years, sold the house to Zillow who trashed all his possessions,” she said, saying her family spent about $20,000 in attorney fees to recover the property.

Don Carroll of the Arizona Attorney General’s Office said his office has received scores of deed-fraud complaints and has handled dozens of prosecutions in recent years. “We’ve had 300 deed-fraud complaints… I’ve had 37 cases in the last 2 years,” he said, and noted that video evidence and facial recognition have helped identify suspects in at least one remote-online-notarization case.

County assessors described existing local protections. Jeannie Kitch (introduced as Mohave County assessor) described Mohave’s address-protection program that flags parcels and prompts staff to call enrolled owners before transfers are completed; she said the program “works beautiful” and that the county has thwarted fraud. Eddie Cook, Maricopa County assessor, said the measure mirrors prior bills and that stakeholders, including online notary services, are working toward an amendment to address remote notarizations.

Alexandria Mendoza, representing Proof (an online notary company), said stakeholders worked with the attorney general’s office on amendment language and asked the chair to run a floor amendment tightening ID-recording requirements; she said the company would move from opposed to neutral if that amendment is adopted.

The committee recorded 7 ayes, 0 nays and returned SB 14 79 with a due-pass recommendation. The chair said he intends to run a floor amendment to strengthen protections and that staff will prepare the amendment.

The measure next moves to the House floor, where amendment language and any further changes will be considered.