Missouri Bill - The Real Property Fraud Prevention Act

Have you ever worried about real estate fraud? In today’s digital era, the risk of fraudulent deeds has increased as property transactions move online. To address this, in the 103rd General Assembly of Missouri, House Bill No. 323 (Real Property Fraud Prevention Act) was introduced by Representative Amato. 

The bill aims to safeguard real property owners by verifying the legitimacy of deeds affecting their property before the transfer of ownership.

Key Provisions of Missouri HB-323

When a property deed is submitted for recording,

• The property owners are notified via phone, text, email, facsimile, or first-class mail. The property owner's details are sourced from the most recent real property tax records to ensure accuracy.
• There will be a minimum delay of five working days before the recording of the deed.
• Once property owners confirm the legitimacy of the deed, it will be recorded immediately without further delay.
• If property owners suspect fraudulent activities and notify the recorder, an additional two working days are provided to allow owners to file cases and attain court orders to protect their property from being recorded fraudulently.

Exception to the 5-Day Deed Recording Delay

The HB-323 outlines some exception scenarios where the five-day recording delay will not apply, ensuring legitimate deed transactions to proceed without delays.

A delay in timing will not be considered for deeds like such as quitclaim deed or general warranty deed, if submitted by:

• A Licensed real estate broker holding a valid Missouri real estate broker license under Chapter 339, ensuring that recordings are managed by qualified real estate professionals.
• A Licensed Title Company under Chapter 381, provided the company issues a title insurance to guarantee the legitimacy of the property title for the prospective property owners, thereby ensuring the security to the deed transaction. 

Rejection of defective deeds

The recorder has the authority to reject or return a defective deed. The issues such as incomplete or missing information, unclear signatures, or expired notary commissions are considered defective deeds.

Significance of Missouri HB-323

Missouri’s Real Property Fraud Prevention Act, a groundbreaking measure, is designed to protect each property owner from fraudulent real estate transactions that might otherwise go unnoticed. By providing delays and notifications in recording transactions, the Act provides protection to property owners.  Additionally, the defective deeds protection and validation from licensed professionals help ensure a secure and transparent property market.