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| Public Act 100-0276
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| HB3150 Enrolled | LRB100 09000 AWJ 19146 b |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Counties Code is amended by changing Section |
3-5010.5 as follows:
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(55 ILCS 5/3-5010.5) |
(Section scheduled to be repealed on June 1, 2018) |
Sec. 3-5010.5. Fraud referral and review. |
(a) Legislative findings. The General Assembly finds that |
property fraud, including fraudulent filings intended to cloud |
or fraudulently transfer title to property by recording false |
or altered documents and deeds, is a rapidly growing problem |
throughout the State. In order to combat the increase in the |
number of these filings, a recorder may establish a process to |
review and refer documents suspected to be fraudulent. |
(b) Definitions. The terms "recording" and "filing" are |
used interchangeably in this Section. |
(c) Establishment and use of a fraud referral and review |
process. A recorder who establishes a fraud referral and review |
process under the provisions of this Section may use it to |
review deeds and instruments and refer any of them to an |
administrative law judge for review pursuant to subsection (g) |
of this Section that cause the recorder to reasonably believe |
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that the filing may be fraudulent, unlawfully altered, or |
intended to unlawfully cloud or transfer the title of any real |
property. The recorder may enter into an intergovernmental |
agreement with local law enforcement officials for the purposes |
of this referral and review. A recorder may request that the |
Secretary of the Department of Financial and Professional |
Regulation assist in reviewing possible fraudulent filings. |
Upon request, the Secretary, or his or her designee, shall |
assist in identifying the validity of filings. The recorder |
shall notify the Secretary when a document suspected to be |
fraudulent is discovered. |
In counties with a population of less than 3 million, a |
recorder shall provide public notice 90 days before the |
establishment of the fraud referral and review process. The |
notice shall include a statement of the recorder's intent to |
create a fraud referral and review process and shall be |
published in a newspaper of general circulation in the county |
and, if feasible, posted on the recorder's website and at the |
recorder's office or offices. |
In determining whether to refer a document to an |
administrative law judge for review, a recorder may take into |
consideration any of the following factors: |
(1) whether the owner of the property or his or her |
designated representative has reported to the recorder |
that another individual is attempting or has attempted to |
record a fraudulent deed or other instrument upon the |
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property; |
(2) whether a law enforcement official has contacted |
the recorder indicating that he or she has probable cause |
to suspect title or recording fraud; |
(3) whether the filer's name has a copyright attached |
to it or the property owner's name has nonstandard |
punctuation attached to it; |
(4) whether the documents assert fines that do not |
exist or have no basis under current law or that require |
payment in gold or silver; |
(5) whether the documents are maritime liens, or liens |
under the Federal Maritime Lien Act or the Preferred Ship |
Mortgage Act, or not authorized by the United States Coast |
Guard; |
(6) whether the documents are land patents not |
authorized and certified by the United States Department of |
the Interior Bureau of Land Management; |
(7) whether the documents are representing that the |
subject of the lien is releasing itself from a lien held by |
another entity, with no apparent cooperation or |
authorization provided by the lienholder; |
(8) whether the documents are protesting or disputing a |
foreclosure proceeding that are not filed within the |
foreclosure suit and with the court presiding over the |
matter; |
(9) whether the documents are Uniform Commercial Code |
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filings referencing birth certificates or other private |
records that are not in compliance with Section 9-501 of |
the Uniform Commercial Code; |
(10) whether the documents are re-recording deeds to |
re-notarize or attach notary certification if prior |
notarization already appears unaltered on the document of |
record; |
(11) whether the documents are asserting diplomatic |
credentials or immunity, non-United States citizenship, or |
independence from the laws of the United States; |
(12) whether the documents are claims that a bank |
cannot hold title after a foreclosure; |
(13) whether the documents are deeds not properly |
signed by the last legal owner of record or his or her
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court appointed representative or attorney-in-fact under a |
power of attorney; |
(14) whether the documents are manipulated or altered |
federal or State legal or court forms that release a lien; |
(15) whether a document is not related to a valid |
existing or potential adverse transaction, existing lien, |
or judgment of a court of competent jurisdiction; |
(16) a document that is not related to a valid existing |
or potential commercial or financial transaction, existing |
agricultural or other lien, or judgment of a court of |
competent jurisdiction; |
(17) whether the document is filed with the intent to |
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harass or defraud the person identified in the record or |
any other person; |
(18) whether the document is filed with the intent to |
harass or defraud any member of a governmental office, |
including, but not limited to, the recorder's office, local |
government offices, the State of Illinois, or the Federal |
government; and |
(19) whether the documents are previous court |
determinations, including a previous determination by a |
court of competent jurisdiction that a particular document |
is fraudulent, invalid, or forged. |
(d) Determinations. If a recorder determines, after review |
by legal staff and counsel, that a deed or instrument that is |
recorded in the grantor's index or the grantee's index may be |
fraudulent, unlawfully altered, or intended to unlawfully |
cloud or transfer the title of any real property, he or she |
shall refer the deed or instrument to an administrative law |
judge for review pursuant to subsection (g) of this Section. |
The recorder shall record a Notice of Referral in the grantor's |
index or the grantee's index identifying the document, |
corresponding document number in question, and the date of |
referral. The recorder shall also notify the parties set forth |
in subsection (e) of this Section. The recorder may, at his or |
her discretion, notify law enforcement officials regarding a |
filing determined to be fraudulent, unlawfully altered, or |
intended to unlawfully cloud or transfer the title of any real |
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property. |
(e) Notice. The recorder shall use county property tax |
records to identify and provide notice to the last owner of |
record by telephone, if available, and certified mail both |
when: (1) a deed or instrument has been referred for review and |
determination; and (2) a final determination has been made |
regarding the deed or instrument. Notice, by mail, shall also |
be sent to the physical address of the property associated with |
the deed or instrument. |
(f) Administrative decision. The recorder's decision to |
add a Notice of Referral and refer a document for review is a |
final administrative decision that is subject to review by the |
circuit court of the county where the real property is located |
under the Administrative Review Law. The standard of review by |
the circuit court shall be de novo. |
(g) Referral and review process. Prior to referral, the |
recorder shall notify the last owner of record of the document |
or documents suspected to be fraudulent. The person, entity, or |
legal representative thereof shall confirm in writing his or |
her belief that a document or documents are suspected to be |
fraudulent and may request that the recorder refer the case for |
review. Upon request, the recorder shall bring a case to its |
county department of administrative hearings and, within 10 |
business days after receipt, an administrative law judge shall |
schedule a hearing to occur no later than 30 days after |
receiving the referral. The referral and case shall clearly |
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identify the person, persons, or entity believed to be the last |
true owner of record as the petitioner. Notice of the hearing |
shall be provided by the administrative law judge to the filer, |
or the party represented by the filer, of the suspected |
fraudulent document, the legal representative of the recorder |
of deeds who referred the case, and the last owner of record, |
as identified in the referral. |
If clear and convincing evidence shows the document in |
question to be fraudulent, the administrative law judge shall |
rule the document to be fraudulent and forward the judgment to |
all the parties identified in this subsection. Upon receiving |
notice of the judgment of fraud, the recorder shall, within 5 |
business days, record a new document that includes a copy of |
the judgment in front of the Notice of Referral that shall |
clearly state that the document in question has been found to |
be fraudulent and shall not be considered to affect the chain |
of title of the property in any way. |
If the administrative law judge finds the document to be |
legitimate, the recorder shall, within 5 business days after |
receiving notice, record a copy of the judgment. |
A decision by an administrative law judge shall not |
preclude a State's attorney or sheriff from proceeding with a |
criminal investigation or criminal charges. If a county does |
not have an administrative law judge that specializes in public |
records, one shall be appointed within 3 months after the |
effective date of this amendatory Act of the 98th General |
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Assembly, or the original case shall be forwarded to the proper |
circuit court with jurisdiction. |
Nothing in this Section precludes a private right of action |
by any party with an interest in the property affected by the |
review and referral, or the filer of the document or documents |
suspected to be fraudulent. Nothing in this Section requires a |
person or entity who may have had a fraudulent document or |
encumbrance filed against his or her property to use the fraud |
review and referral process or administrative review created by |
this Section. |
(h) Fees. The recorder shall retain any filing fees |
associated with filing a deed or instrument that is determined |
to be fraudulent, unlawfully altered, or intended to unlawfully |
cloud or transfer the title of any real property under this |
Section. |
(i) Liability. Neither a recorder nor any of his or her |
employees or agents shall be subject to personal liability by |
reason of any error or omission in the performance of any duty |
under this Section, except in case of willful or wanton |
conduct. Neither the recorder nor any of his or her employees |
shall incur liability for the referral or review, or failure to |
refer or review, a document or instrument under this Section. |
(j) Applicability. This Section applies only to filings |
provided to the recorder on and after the effective date of |
this amendatory Act of the 98th General Assembly. |
(k) (Blank). This Section is repealed June 1, 2018.
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