NASHVILLE, Tenn. – Gov. Bill Lee has signed legislation by House Majority Whip Johnny Garrett, R-Goodlettsville, to protect Tennessee homeowners from title fraud. Garrett partnered with Sumner County Register of Deeds Holly Hemmrich to draft the new law, which prevents fraud on electronically filed deeds by specifying the people and entities allowed to submit electronic […]
NASHVILLE, Tenn. – Gov. Bill Lee has signed legislation by House Majority Whip Johnny Garrett, R-Goodlettsville, to protect Tennessee homeowners from title fraud.
Garrett partnered with Sumner County Register of Deeds Holly Hemmrich to draft the new law, which prevents fraud on electronically filed deeds by specifying the people and entities allowed to submit electronic records to a county register. Filing vendors, not registers of deeds, are now responsible for ensuring records being transmitted are legitimate.
“Achieving home or property ownership is a hard-earned goal, often the result of years of work, saving and perseverance. Bad actors shouldn’t be able to take that away,” said Garrett. “Unfortunately, fraudsters and scammers are attempting to undermine law-abiding residents through identity theft and title fraud, shattering families and upending lives. This new law seeks to protect Tennessee homeowners from this disturbing crime by ensuring accountability and transparency in the property transfer process. I’m grateful to Governor Lee for his support and I look forward to continuing to deliver common-sense solutions for the Volunteer State.”
County registers can receive electronic records from licensed attorneys, banks, federally chartered lending institutions, mortgage lenders and others. Vendors are liable for any damages resulting from their failure to comply with this new law.
Home title theft occurs when bad actors forge documents to transfer a property deed without the owner’s knowledge. Individuals could then take advantage of the home equity or even attempt to sell, mortgage or rent out a vacant property for profit. The crime often involves identity theft, where scammers use personal information to gain access to a deed. Fraudsters typically target vacant properties with no mortgage.
The Federal Bureau of Investigation recently warned it has seen a “steady increase” in cases of title theft. More than 58,000 victims have reported $1.3 billion in losses from real estate fraud between 2019 and 2023.
The FBI recommends continually monitoring online property records, setting up title alerts with a clerk’s office, and periodically checking a vacant property to prevent home title theft. Sumner County and several other Tennessee counties offer alerts for residents to stay informed on what’s being recorded against their name and property.
The new law takes effect July 1.
State Rep. Johnny Garrett of Goodlettsville represents District 45 in the Tennessee House of Representatives, which includes part of Sumner County.