Full Text of HB2832 98th General Assembly
HB2832enr 98TH GENERAL ASSEMBLY |
| | HB2832 Enrolled | | LRB098 10729 OMW 41064 b |
|
| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Counties Code is amended by adding Section | 5 | | 3-5010.5 as follows: | 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. | 17 | | (c) Establishment and use of a fraud referral and review | 18 | | process. A recorder who establishes a fraud referral and review | 19 | | process under the provisions of this Section may use it to | 20 | | review deeds and instruments and refer any of them to an | 21 | | administrative law judge for review pursuant to subsection (g) | 22 | | of this Section that cause the recorder to reasonably believe | 23 | | that the filing may be fraudulent, unlawfully altered, or |
| | | HB2832 Enrolled | - 2 - | LRB098 10729 OMW 41064 b |
|
| 1 | | intended to unlawfully cloud or transfer the title of any real | 2 | | property. The recorder may enter into an intergovernmental | 3 | | agreement with local law enforcement officials for the purposes | 4 | | of this referral and review. A recorder may request that the | 5 | | Secretary of the Department of Financial and Professional | 6 | | Regulation assist in reviewing possible fraudulent filings. | 7 | | Upon request, the Secretary, or his or her designee, shall | 8 | | assist in identifying the validity of filings. The recorder | 9 | | shall notify the Secretary when a document suspected to be | 10 | | fraudulent is discovered. | 11 | | In counties with a population of less than 3 million, a | 12 | | recorder shall provide public notice 90 days before the | 13 | | establishment of the fraud referral and review process. The | 14 | | notice shall include a statement of the recorder's intent to | 15 | | create a fraud referral and review process and shall be | 16 | | published in a newspaper of general circulation in the county | 17 | | and, if feasible, posted on the recorder's website and at the | 18 | | recorder's office or offices. | 19 | | In determining whether to refer a document to an | 20 | | administrative law judge for review, a recorder may take into | 21 | | consideration any of the following factors: | 22 | | (1) whether the owner of the property or his or her | 23 | | designated representative has reported to the recorder | 24 | | that another individual is attempting or has attempted to | 25 | | record a fraudulent deed or other instrument upon the | 26 | | property; |
| | | HB2832 Enrolled | - 3 - | LRB098 10729 OMW 41064 b |
|
| 1 | | (2) whether a law enforcement official has contacted | 2 | | the recorder indicating that he or she has probable cause | 3 | | to suspect title or recording fraud; | 4 | | (3) whether the filer's name has a copyright attached | 5 | | to it or the property owner's name has nonstandard | 6 | | punctuation attached to it; | 7 | | (4) whether the documents assert fines that do not | 8 | | exist or have no basis under current law or that require | 9 | | payment in gold or silver; | 10 | | (5) whether the documents are maritime liens, or liens | 11 | | under the Federal Maritime Lien Act or the Preferred Ship | 12 | | Mortgage Act, or not authorized by the United States Coast | 13 | | Guard; | 14 | | (6) whether the documents are land patents not | 15 | | authorized and certified by the United States Department of | 16 | | the Interior Bureau of Land Management; | 17 | | (7) whether the documents are representing that the | 18 | | subject of the lien is releasing itself from a lien held by | 19 | | another entity, with no apparent cooperation or | 20 | | authorization provided by the lienholder; | 21 | | (8) whether the documents are protesting or disputing a | 22 | | foreclosure proceeding that are not filed within the | 23 | | foreclosure suit and with the court presiding over the | 24 | | matter; | 25 | | (9) whether the documents are Uniform Commercial Code | 26 | | filings referencing birth certificates or other private |
| | | HB2832 Enrolled | - 4 - | LRB098 10729 OMW 41064 b |
|
| 1 | | records that are not in compliance with Section 9-501 of | 2 | | the Uniform Commercial Code; | 3 | | (10) whether the documents are re-recording deeds to | 4 | | re-notarize or attach notary certification if prior | 5 | | notarization already appears unaltered on the document of | 6 | | record; | 7 | | (11) whether the documents are asserting diplomatic | 8 | | credentials or immunity, non-United States citizenship, or | 9 | | independence from the laws of the United States; | 10 | | (12) whether the documents are claims that a bank | 11 | | cannot hold title after a foreclosure; | 12 | | (13) whether the documents are deeds not properly | 13 | | signed by the last legal owner of record or his or her
| 14 | | court appointed representative or attorney-in-fact under a | 15 | | power of attorney; | 16 | | (14) whether the documents are manipulated or altered | 17 | | federal or State legal or court forms that release a lien; | 18 | | (15) whether a document is not related to a valid | 19 | | existing or potential adverse transaction, existing lien, | 20 | | or judgment of a court of competent jurisdiction; | 21 | | (16) a document that is not related to a valid existing | 22 | | or potential commercial or financial transaction, existing | 23 | | agricultural or other lien, or judgment of a court of | 24 | | competent jurisdiction; | 25 | | (17) whether the document is filed with the intent to | 26 | | harass or defraud the person identified in the record or |
| | | HB2832 Enrolled | - 5 - | LRB098 10729 OMW 41064 b |
|
| 1 | | any other person; | 2 | | (18) whether the document is filed with the intent to | 3 | | harass or defraud any member of a governmental office, | 4 | | including, but not limited to, the recorder's office, local | 5 | | government offices, the State of Illinois, or the Federal | 6 | | government; and | 7 | | (19) whether the documents are previous court | 8 | | determinations, including a previous determination by a | 9 | | court of competent jurisdiction that a particular document | 10 | | is fraudulent, invalid, or forged. | 11 | | (d) Determinations. If a recorder determines, after review | 12 | | by legal staff and counsel, that a deed or instrument that is | 13 | | recorded in the grantor's index or the grantee's index may be | 14 | | fraudulent, unlawfully altered, or intended to unlawfully | 15 | | cloud or transfer the title of any real property, he or she | 16 | | shall refer the deed or instrument to an administrative law | 17 | | judge for review pursuant to subsection (g) of this Section. | 18 | | The recorder shall record a Notice of Referral in the grantor's | 19 | | index or the grantee's index identifying the document, | 20 | | corresponding document number in question, and the date of | 21 | | referral. The recorder shall also notify the parties set forth | 22 | | in subsection (e) of this Section. The recorder may, at his or | 23 | | her discretion, notify law enforcement officials regarding a | 24 | | filing determined to be fraudulent, unlawfully altered, or | 25 | | intended to unlawfully cloud or transfer the title of any real | 26 | | property. |
| | | HB2832 Enrolled | - 6 - | LRB098 10729 OMW 41064 b |
|
| 1 | | (e) Notice. The recorder shall use county property tax | 2 | | records to identify and provide notice to the last owner of | 3 | | record by telephone, if available, and certified mail both | 4 | | when: (1) a deed or instrument has been referred for review and | 5 | | determination; and (2) a final determination has been made | 6 | | regarding the deed or instrument. Notice, by mail, shall also | 7 | | be sent to the physical address of the property associated with | 8 | | the deed or instrument. | 9 | | (f) Administrative decision. The recorder's decision to | 10 | | add a Notice of Referral and refer a document for review is a | 11 | | final administrative decision that is subject to review by the | 12 | | circuit court of the county where the real property is located | 13 | | under the Administrative Review Law. The standard of review by | 14 | | the circuit court shall be de novo. | 15 | | (g) Referral and review process. Prior to referral, the | 16 | | recorder shall notify the last owner of record of the document | 17 | | or documents suspected to be fraudulent. The person, entity, or | 18 | | legal representative thereof shall confirm in writing his or | 19 | | her belief that a document or documents are suspected to be | 20 | | fraudulent and may request that the recorder refer the case for | 21 | | review. Upon request, the recorder shall bring a case to its | 22 | | county department of administrative hearings and, within 10 | 23 | | business days after receipt, an administrative law judge shall | 24 | | schedule a hearing to occur no later than 30 days after | 25 | | receiving the referral. The referral and case shall clearly | 26 | | identify the person, persons, or entity believed to be the last |
| | | HB2832 Enrolled | - 7 - | LRB098 10729 OMW 41064 b |
|
| 1 | | true owner of record as the petitioner. Notice of the hearing | 2 | | shall be provided by the administrative law judge to the filer, | 3 | | or the party represented by the filer, of the suspected | 4 | | fraudulent document, the legal representative of the recorder | 5 | | of deeds who referred the case, and the last owner of record, | 6 | | as identified in the referral. | 7 | | If clear and convincing evidence shows the document in | 8 | | question to be fraudulent, the administrative law judge shall | 9 | | rule the document to be fraudulent and forward the judgment to | 10 | | all the parties identified in this subsection. Upon receiving | 11 | | notice of the judgment of fraud, the recorder shall, within 5 | 12 | | business days, record a new document that includes a copy of | 13 | | the judgment in front of the Notice of Referral that shall | 14 | | clearly state that the document in question has been found to | 15 | | be fraudulent and shall not be considered to affect the chain | 16 | | of title of the property in any way. | 17 | | If the administrative law judge finds the document to be | 18 | | legitimate, the recorder shall, within 5 business days after | 19 | | receiving notice, record a copy of the judgment. | 20 | | A decision by an administrative law judge shall not | 21 | | preclude a State's attorney or sheriff from proceeding with a | 22 | | criminal investigation or criminal charges. If a county does | 23 | | not have an administrative law judge that specializes in public | 24 | | records, one shall be appointed within 3 months after the | 25 | | effective date of this amendatory Act of the 98th General | 26 | | Assembly, or the original case shall be forwarded to the proper |
| | | HB2832 Enrolled | - 8 - | LRB098 10729 OMW 41064 b |
|
| 1 | | circuit court with jurisdiction. | 2 | | Nothing in this Section precludes a private right of action | 3 | | by any party with an interest in the property affected by the | 4 | | review and referral, or the filer of the document or documents | 5 | | suspected to be fraudulent. Nothing in this Section requires a | 6 | | person or entity who may have had a fraudulent document or | 7 | | encumbrance filed against his or her property to use the fraud | 8 | | review and referral process or administrative review created by | 9 | | this Section. | 10 | | (h) Fees. The recorder shall retain any filing fees | 11 | | associated with filing a deed or instrument that is determined | 12 | | to be fraudulent, unlawfully altered, or intended to unlawfully | 13 | | cloud or transfer the title of any real property under this | 14 | | Section. | 15 | | (i) Liability. Neither a recorder nor any of his or her | 16 | | employees or agents shall be subject to personal liability by | 17 | | reason of any error or omission in the performance of any duty | 18 | | under this Section, except in case of willful or wanton | 19 | | conduct. Neither the recorder nor any of his or her employees | 20 | | shall incur liability for the referral or review, or failure to | 21 | | refer or review, a document or instrument under this Section. | 22 | | (j) Applicability. This Section applies only to filings | 23 | | provided to the recorder on and after the effective date of | 24 | | this amendatory Act of the 98th General Assembly. | 25 | | (k) This Section is repealed June 1, 2018.
| 26 | | Section 99. Effective date. This Act takes effect upon |
| | | HB2832 Enrolled | - 9 - | LRB098 10729 OMW 41064 b |
|
| 1 | | becoming law.
|
|