WeVote
Log In

Bill

Bill

HB 7551

AN ACT RELATING TO CRIMINAL OFFENSES -- FRAUD AND FALSE DEALING

2026 Regular Session Introduced by Mia Ackerman and 9 co-sponsors

Establishes real estate title fraud as a crime, with penalties, civil remedies for victims, and municipal tools to curb fraudulent filings and protect owners.

06/10/2026 Signed by Governor
0
WeVote Research Nonpartisan
Bill Summary · HB 7551

Summary of HB 7551 (Rhode Island, 2026) – Real Estate Title Fraud and Related Provisions

Main purpose and intent

  • Establish a new criminal offense: real estate title fraud.
  • Provide tools for municipalities to curb fraudulent real estate filings, including handling of suspicious documents.
  • Create a property owner notification system to help owners monitor recording activity on their property.
  • Update notarial practice to strengthen identity proofing and the ability to refuse notarial acts when appropriate.

Key provisions and changes

1) Real estate title fraud (new § 11-18-35)

  • Definitions:
    • Clarifies terms for documents, instruments, and real estate titles.
    • Defines “suspicious document,” “trusted submitter,” and “pattern of real estate title fraud.”
    • Identifies “victim” as a person who experiences monetary or other losses.
  • Filing standards and municipal role (effective Sept. 1, 2027):
    • Municipalities may require sufficient documentation identifying the filer or restrict filings to trusted submitters for electronic filings of deeds, mortgages, or related instruments from remote locations.
    • Municipal recorders may temporarily delay suspicious documents, report them to law enforcement, or notify notaries involved.
  • Offenses and penalties:
    • First offense: felony up to 10 years’ imprisonment and/or up to $50,000 fine.
    • Pattern of title fraud: felony up to 20 years and/or up to $100,000 fine, with potential restitution.
  • Civil remedy for victims:
    • Real estate owners can sue for actual damages or $5,000 (whichever is greater), plus recovery of legal costs.
  • Protections for recorders:
    • Recorders acting in good faith are shielded from damages in actions under this section.
  • Scope:
    • Prohibits actions including forged signatures, fraudulent instruments or mortgages, false encumbrances, and transfers of third-party interests via forged documents.

2) Property alert notifications for property owners (new § 11-18-36)

  • Mandatory municipality program by Jan. 1, 2028:
    • Each municipality must establish a property alert system enabling owners to enroll their property.
  • Notifications:
    • Enrolled owners must be notified within 10 business days of the recording of documents affecting the enrolled property.
    • Notifications include the document’s nature, property identification (address or tax ID), and recording information.
  • Preferences and costs:
    • Owners may choose notification channels (mail, text, call, email).
    • Enrollment is free.
  • Information and access:
    • Municipalities may provide educational materials about deed fraud.
    • Municipalities may index a searchable log of recorded documents with limited identifying details.
    • Public access to logs/logs is permitted; municipalities are not liable for violations under these provisions.

3) Notarial acts – identity proofing and refusal to perform notarial acts (amendment to § 42-30.1-7)

  • Notaries may refuse to perform a notarial act if:
    • The signer lacks competency or capacity, or signs involuntarily.
    • Insufficient information to conduct identity proofing, or signer does not consent to identity proofing.
  • Refusal is not mandatory to the extent prohibited by other law.

4) Effective date

  • The act takes effect upon passage.

Who/what is affected

  • Real estate recorders and municipal clerks handling land records.
  • Real estate title submitters, including title insurers, attorneys, and certain financial institutions (trusted submitters).
  • Property owners, who gain a new notification system to monitor filings.
  • Notarial officers, who gain clarifications on when they may refuse to perform notarial acts.

Procedural and timeline notes

  • Effective date for most provisions: upon passage, with specific implementation for certain provisions starting Sept. 1, 2027 (suspicious documents and trusted submitter requirements).
  • By Jan. 1, 2028: mandatory property alert system participation deadline for municipalities.
  • The bill has been advanced through committee with passage recommendations as of April 28, 2026.

Potential impact

  • Aims to deter and penalize real estate title fraud through criminal penalties and civil remedies.
  • Improves detection and reporting of suspicious real estate filings at the local level.
  • Empowers property owners with timely notice of document activity on their property.
  • Strengthens notarial practices to prevent identity-related fraud.
  • Creates a framework to balance fraud prevention with administrative burden on recorders and trusted submitters.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.