Bill Text: IL HB2832 | 2013-2014 | 98th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Counties Code. Provides that a county recorder may establish a Review Index and procedures for investigating filings that would cause the recorder to reasonably believe that the filing may be fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property. Provides the General Assembly's findings regarding property fraud and fraudulent filings. Provides for the following: (1) the filing of a notice sheet regarding a suspected fraudulent filing; (2) criteria that a recorder may rely upon to identify a filing as appropriate to be placed in the Review Index; (3) notification requirements of a recorder's determinations regarding a filing; (4) procedures for removal of a filing from the Review Index; (5) administrative review of a recorder's determination; (6) priority of filing; and (7) fees associated with filing a deed or instrument that is determined to be fraudulent. Further provides that no recorder, nor any of his or her employees or agents, shall be liable for any omission or error under this Section, nor for the failure to place a deed or instrument into the Review Index. Provides that the provisions of the amendatory Act only apply to deeds or instruments filed after the effective date of the amendatory Act. Effective immediately.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2013-07-19 - Public Act . . . . . . . . . 98-0099 [HB2832 Detail]
Download: Illinois-2013-HB2832-Amended.html
Bill Title: Amends the Counties Code. Provides that a county recorder may establish a Review Index and procedures for investigating filings that would cause the recorder to reasonably believe that the filing may be fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property. Provides the General Assembly's findings regarding property fraud and fraudulent filings. Provides for the following: (1) the filing of a notice sheet regarding a suspected fraudulent filing; (2) criteria that a recorder may rely upon to identify a filing as appropriate to be placed in the Review Index; (3) notification requirements of a recorder's determinations regarding a filing; (4) procedures for removal of a filing from the Review Index; (5) administrative review of a recorder's determination; (6) priority of filing; and (7) fees associated with filing a deed or instrument that is determined to be fraudulent. Further provides that no recorder, nor any of his or her employees or agents, shall be liable for any omission or error under this Section, nor for the failure to place a deed or instrument into the Review Index. Provides that the provisions of the amendatory Act only apply to deeds or instruments filed after the effective date of the amendatory Act. Effective immediately.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2013-07-19 - Public Act . . . . . . . . . 98-0099 [HB2832 Detail]
Download: Illinois-2013-HB2832-Amended.html
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1 | AMENDMENT TO HOUSE BILL 2832
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2 | AMENDMENT NO. ______. Amend House Bill 2832 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Counties Code is amended by adding Section | ||||||
5 | 3-5010.5 as follows:
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6 | (55 ILCS 5/3-5010.5 new) | ||||||
7 | Sec. 3-5010.5. Fraud referral and review. | ||||||
8 | (a) Legislative findings. The General Assembly finds that | ||||||
9 | property fraud, including fraudulent filings intended to cloud | ||||||
10 | or fraudulently transfer title to property by recording false | ||||||
11 | or altered documents and deeds, is a rapidly growing problem | ||||||
12 | throughout the State. In order to combat the increase in the | ||||||
13 | number of these filings, a recorder may establish a process to | ||||||
14 | review and refer documents suspected to be fraudulent. | ||||||
15 | (b) Definitions. The terms "recording" and "filing" are | ||||||
16 | used interchangeably in this Section. |
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1 | (c) Establishment and use of a fraud referral and review | ||||||
2 | process. A recorder who establishes a fraud referral and review | ||||||
3 | process under the provisions of this Section may use it to | ||||||
4 | review deeds and instruments and refer any of them to an | ||||||
5 | administrative law judge for review pursuant to subsection (g) | ||||||
6 | of this Section that cause the recorder to reasonably believe | ||||||
7 | that the filing may be fraudulent, unlawfully altered, or | ||||||
8 | intended to unlawfully cloud or transfer the title of any real | ||||||
9 | property. The recorder may enter into an intergovernmental | ||||||
10 | agreement with local law enforcement officials for the purposes | ||||||
11 | of this referral and review. A recorder may request that the | ||||||
12 | Secretary of the Department of Financial and Professional | ||||||
13 | Regulation assist in reviewing possible fraudulent filings. | ||||||
14 | Upon request, the Secretary, or his or her designee, shall | ||||||
15 | assist in identifying the validity of filings. The recorder | ||||||
16 | shall notify the Secretary when a document suspected to be | ||||||
17 | fraudulent is discovered. | ||||||
18 | In counties with a population of less than 3 million, a | ||||||
19 | recorder shall provide public notice 90 days before the | ||||||
20 | establishment of the fraud referral and review process. The | ||||||
21 | notice shall include a statement of the recorder's intent to | ||||||
22 | create a fraud referral and review process and shall be | ||||||
23 | published in a newspaper of general circulation in the county | ||||||
24 | and, if feasible, posted on the recorder's website and at the | ||||||
25 | recorder's office or offices. | ||||||
26 | In determining whether to refer a document to an |
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1 | administrative law judge for review, a recorder may take into | ||||||
2 | consideration any of the following factors: | ||||||
3 | (1) whether the owner of the property or his or her | ||||||
4 | designated representative has reported to the recorder | ||||||
5 | that another individual is attempting or has attempted to | ||||||
6 | record a fraudulent deed or other instrument upon the | ||||||
7 | property; | ||||||
8 | (2) whether a law enforcement official has contacted | ||||||
9 | the recorder indicating that he or she has probable cause | ||||||
10 | to suspect title or recording fraud; | ||||||
11 | (3) whether the filer's name has a copyright attached | ||||||
12 | to it or the property owner's name has nonstandard | ||||||
13 | punctuation attached to it; | ||||||
14 | (4) whether the documents assert fines that do not | ||||||
15 | exist or have no basis under current law or that require | ||||||
16 | payment in gold or silver; | ||||||
17 | (5) whether the documents are maritime liens, or liens | ||||||
18 | under the Federal Maritime Lien Act or the Preferred Ship | ||||||
19 | Mortgage Act, or not authorized by the United States Coast | ||||||
20 | Guard; | ||||||
21 | (6) whether the documents are land patents not | ||||||
22 | authorized and certified by the United States Department of | ||||||
23 | the Interior Bureau of Land Management; | ||||||
24 | (7) whether the documents are representing that the | ||||||
25 | subject of the lien is releasing itself from a lien held by | ||||||
26 | another entity, with no apparent cooperation or |
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1 | authorization provided by the lienholder; | ||||||
2 | (8) whether the documents are protesting or disputing a | ||||||
3 | foreclosure proceeding that are not filed within the | ||||||
4 | foreclosure suit and with the court presiding over the | ||||||
5 | matter; | ||||||
6 | (9) whether the documents are Uniform Commercial Code | ||||||
7 | filings referencing birth certificates or other private | ||||||
8 | records that are not in compliance with Section 9-501 of | ||||||
9 | the Uniform Commercial Code; | ||||||
10 | (10) whether the documents are re-recording deeds to | ||||||
11 | re-notarize or attach notary certification if prior | ||||||
12 | notarization already appears unaltered on the document of | ||||||
13 | record; | ||||||
14 | (11) whether the documents are asserting diplomatic | ||||||
15 | credentials or immunity, non-United States citizenship, or | ||||||
16 | independence from the laws of the United States; | ||||||
17 | (12) whether the documents are claims that a bank | ||||||
18 | cannot hold title after a foreclosure; | ||||||
19 | (13) whether the documents are deeds not properly | ||||||
20 | signed by the last legal owner of record or his or her
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21 | court appointed representative or attorney-in-fact under a | ||||||
22 | power of attorney; | ||||||
23 | (14) whether the documents are manipulated or altered | ||||||
24 | federal or State legal or court forms that release a lien; | ||||||
25 | (15) whether a document is not related to a valid | ||||||
26 | existing or potential adverse transaction, existing lien, |
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1 | or judgment of a court of competent jurisdiction; | ||||||
2 | (16) a document that is not related to a valid existing | ||||||
3 | or potential commercial or financial transaction, existing | ||||||
4 | agricultural or other lien, or judgment of a court of | ||||||
5 | competent jurisdiction; | ||||||
6 | (17) whether the document is filed with the intent to | ||||||
7 | harass or defraud the person identified in the record or | ||||||
8 | any other person; | ||||||
9 | (18) whether the document is filed with the intent to | ||||||
10 | harass or defraud any member of a governmental office, | ||||||
11 | including, but not limited to, the recorder's office, local | ||||||
12 | government offices, the State of Illinois, or the Federal | ||||||
13 | government; and | ||||||
14 | (19) whether the documents are previous court | ||||||
15 | determinations, including a previous determination by a | ||||||
16 | court of competent jurisdiction that a particular document | ||||||
17 | is fraudulent, invalid, or forged. | ||||||
18 | (d) Determinations. If a recorder determines, after review | ||||||
19 | by legal staff and counsel, that a deed or instrument may be | ||||||
20 | fraudulent, unlawfully altered, or intended to unlawfully | ||||||
21 | cloud or transfer the title of any real property, he or she | ||||||
22 | shall refer the deed or instrument to an administrative law | ||||||
23 | judge for review pursuant to subsection (g) of this Section. | ||||||
24 | The recorder shall place a Notice of Referral in his or her | ||||||
25 | Property Index identifying the document, corresponding | ||||||
26 | document number in question, and the date of referral. The |
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1 | recorder shall also notify the parties set forth in subsection | ||||||
2 | (e) of this Section. The recorder may, at his or her | ||||||
3 | discretion, notify law enforcement officials regarding a | ||||||
4 | filing determined to be fraudulent, unlawfully altered, or | ||||||
5 | intended to unlawfully cloud or transfer the title of any real | ||||||
6 | property. | ||||||
7 | (e) Notice. The recorder shall use county property tax | ||||||
8 | records to identify and provide notice to the last owner of | ||||||
9 | record by telephone, if available, and certified mail both | ||||||
10 | when: (1) a deed or instrument has been referred for review and | ||||||
11 | determination; and (2) a final determination has been made | ||||||
12 | regarding the deed or instrument. | ||||||
13 | (f) Administrative decision. The recorder's decision to | ||||||
14 | add a Notice of Referral and refer a document for review is a | ||||||
15 | final administrative decision that is subject to review by the | ||||||
16 | circuit court of the county where the real property is located | ||||||
17 | under the Administrative Review Law. The standard of review by | ||||||
18 | the circuit court shall be de novo. | ||||||
19 | (g) Referral and review process. The recorder shall bring a | ||||||
20 | case to its county department of administrative hearings and, | ||||||
21 | within 10 business days after receipt, an administrative law | ||||||
22 | judge shall schedule a hearing to occur no later than 30 days | ||||||
23 | after receiving the referral. Notice of the hearing shall be | ||||||
24 | provided by the administrative law judge to the filer, or the | ||||||
25 | party represented by the filer, of the suspected fraudulent | ||||||
26 | document, the legal representative of the recorder of deeds who |
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1 | referred the case, and the last owner of record, as identified | ||||||
2 | in the referral. | ||||||
3 | If a preponderance of the evidence shows the document in | ||||||
4 | question to be fraudulent, the administrative law judge shall | ||||||
5 | rule the document to be fraudulent and forward the judgment to | ||||||
6 | all the parties identified in this subsection. Upon receiving | ||||||
7 | notice of the judgment of fraud, the recorder shall, within 5 | ||||||
8 | business days, record a new document that includes a copy of | ||||||
9 | the judgment in front of the Notice of Referral that shall | ||||||
10 | clearly state that the document in question has been found to | ||||||
11 | be fraudulent and shall not be considered to affect the chain | ||||||
12 | of title of the property in any way. | ||||||
13 | If the administrative law judge finds the document to be | ||||||
14 | legitimate, the recorder shall, within 5 business days after | ||||||
15 | receiving notice, record a copy of the judgment. | ||||||
16 | A decision by an administrative law judge shall not | ||||||
17 | preclude a State's attorney or sheriff from proceeding with a | ||||||
18 | criminal investigation or criminal charges. If a county does | ||||||
19 | not have an administrative law judge that specializes in public | ||||||
20 | records, one shall be appointed within 3 months after the | ||||||
21 | effective date of this amendatory Act of the 98th General | ||||||
22 | Assembly, or the original case shall be forwarded to the proper | ||||||
23 | circuit court with jurisdiction. | ||||||
24 | (h) Fees. The recorder shall retain any filing fees | ||||||
25 | associated with filing a deed or instrument that is determined | ||||||
26 | to be fraudulent, unlawfully altered, or intended to unlawfully |
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1 | cloud or transfer the title of any real property under this | ||||||
2 | Section. | ||||||
3 | (i) Liability. Neither a recorder nor any of his or her | ||||||
4 | employees or agents shall be subject to personal liability by | ||||||
5 | reason of any error or omission in the performance of any duty | ||||||
6 | under this Section, except in case of willful or wanton | ||||||
7 | conduct. Neither the recorder nor any of his or her employees | ||||||
8 | shall incur liability for the referral or review, or failure to | ||||||
9 | refer or review, a document or instrument under this Section. | ||||||
10 | (j) Applicability. This Section applies only to filings | ||||||
11 | provided to the recorder on and after the effective date of | ||||||
12 | this amendatory Act of the 98th General Assembly. | ||||||
13 | (k) This Section is repealed June 1, 2018.
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.".
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