RI Adopts New Rules for Electronically Recording Property Documents and Makes Real Estate Title Fraud a Crime

Rhode Island recently enacted legislation creating new requirements for remotely recording property documents, adopting a property recording alert notification system, and criminalizing real estate title fraud.

The statute requires municipalities to, starting September 1, 2027, reject remote electronic filings of real estate deeds, mortgages, and related instruments unless accompanied by sufficient documentation to identify the filer or filed by a trusted submitter.  A remote filing that violates this requirement is voidable upon a finding by a court of competent jurisdiction.  These changes do not affect in-person filings.

Additionally, each municipality must establish a free public system through which a real property owner can enroll for alerts when documents are recorded that affect their property.  Each municipality must implement its system by January 1, 2028.

Finally, the new crime of real estate title fraud applies where a person, with intent to defraud, (i) knowingly offers for recording: a real estate deed with a forged transferor’s signature; a fraudulently created instrument or title to real estate; or a fraudulent mortgage, lien, or other instrument claiming an interest in real estate; (ii) knowingly falsely encumbers the real estate of another; or (iii) knowingly attempts or transfers an interest, encumbrance, lien, or mortgage in the property of a third party using a known forged or false document.  Violations constitute a felony punishable by up to ten years in prison or up to twenty years for a pattern of real estate title fraud. 

The statute also creates a private right of action for real property owner victims against violators (but not against any public official or municipal clerk for actions taken in good faith or upon information provided by third-party systems or vendors).

The legislation went into effect immediately upon enactment.