Rhode Island 2025 Regular Session

Rhode Island House Bill H5662 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5662
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7	7	LC001890
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO CRIMINAL OFFENSES -- FRAUD AND FALSE DEALING
16	16	Introduced By: Representatives Kennedy, Ackerman, Azzinaro, Edwards, O'Brien,
17	17	Kazarian, and Diaz
18	18	Date Introduced: February 26, 2025
19	19	Referred To: House Judiciary
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Chapter 11-18 of the General Laws entitled "Fraud and False Dealing" is 1
24	24	hereby amended by adding thereto the following section: 2
25	25	11-18-35. Real estate title fraud - Unsolicited offers to purchase. 3
26	26	(a) For the purpose of this section, the following definitions shall apply: 4
27	27	(1) “Mortgage lending process” means the process through which a person seeks or obtains 5
28	28	a residential mortgage loan including, but not limited to, solicitation, application, or origination of 6
29	29	terms, real estate appraisals and surveys, third-party provider services, underwriting, signing and 7
30	30	closing, and funding of the loan. 8
31	31	(2) “Pattern of real estate title fraud” means one or more violations of subsection (b)(1) or 9
32	32	(b)(2) of this section that and that have the same or similar intents, results, accomplices, or methods 10
33	33	of commission or otherwise results from comparable actions or omissions. 11
34	34	(3) “Person” means an individual, corporation, company, limited liability company, 12
35	35	partnership, trustee, association, or any other entity. 13
36	36	(4) “Instrument” means a deed, to secure debt, security deed, mortgage, security interest, 14
37	37	deed of trust, promissory note, or any other document representing a security interest or lien upon 15
38	38	any interest property including the renewal, modification, or refinancing of any such loan. 16
39	39	(5) “Sufficient documentation” means a driver’s license, passport, military identification 17
40	40	card, an attorney registration or bar association identification card, or other government issued 18
41	41	identification that established positive identification. 19
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44	44	LC001890 - Page 2 of 4
45	45	(6) “Unsolicited real estate purchase offer” means an oral or written offer to purchase real 1
46	46	estate initiated by the potential purchaser or the purchase’s agent to purchase real estate not subject 2
47	47	to a real estate listing agreement nor offered for sale by the owner of the owners agent prior to 3
48	48	receiving the offer to purchase from the potential purchaser or purchaser’s agent. 4
49	49	(7) “Victim” means a person who experienced personal loss, including, but not limited to 5
50	50	monetary loss, due to violation of this section. 6
51	51	(b)(1) Any person or entity making an unsolicited offer to purchase real estate shall provide 7
52	52	the following notice: 8
53	53	“This offer may or may not be equal to the fair market value of the property.” 9
54	54	(2) If the offer is less than the values of the previous year’s assessed values for municipal 10
55	55	taxation purpose the following additional notice shall also be included in the notice required by 11
56	56	subsection (b)(1) of this section as follows: 12
57	57	“ This offer is less than the municipal assessed value for this property.” 13
58	58	(c) The notices required in subsection (b) of this section shall be in a separate document 14
59	59	from any other offer, advisement or writing provided by the offeror and shall be printed in capital 15
60	60	letters at a minimum font size of eight (8) points, and shall be signed by all owners/prospective 16
61	61	sellers of the real estate. 17
62	62	(d) Any person who violates any of the provisions of subsections (b) or (c) of this section 18
63	63	shall be guilty of a misdemeanor and upon conviction may be imprisoned for a term not exceeding 19
64	64	one year or fined not exceeding one thousand dollars ($1,000), and any transfer or sale of real estate 20
65	65	in violation of the provisions of subsection (b) or (c) of this section shall be voidable at the election 21
66	66	of the seller for a period of sixty (60) days from the date of sale, provided the purchaser has provided 22
67	67	the seller with an address to send the notice of cancellation of sale. If a valid address has not been 23
68	68	provided to the seller, the sixty (60) day period shall not start until the seller acquires actual notice 24
69	69	of the current address of the purchaser. 25
70	70	(e) On and after September 1, 2025, no municipality shall authorize or accept for filling 26
71	71	any real estate deed, mortgage, or other instrument by electronic filing from a remote location 27
72	72	unless the filing is accompanied with sufficient documentation to identify the individual making 28
73	73	the filing. 29
74	74	(f) Any filing in violation of the provisions of subsection (e) of this section shall be void. 30
75	75	Nothing in this section shall be construed to apply to an in person filing of a deed in the appropriate 31
76	76	municipal department or office. 32
77	77	(g) A person commits real estate title fraud when such person, with intent to defraud: 33
78	78	(1) Knowingly offers for recording or records any real estate deed in which the transferor’s 34
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82	82	signature is forged: 1
83	83	(2) Knowingly offers for recording or records a fraudulently created instrument or title to 2
84	84	the real estate; or 3
85	85	(3) Knowingly offers for recording or records a fraudulent mortgage, lien or instrument 4
86	86	claiming an interest in real estate for either themself or another person or entity: or 5
87	87	(4) Knowingly falsely encumbering the real estate of another; or 6
88	88	(5) Knowingly attempts or transfers an interest, encumbrance, lien or mortgage in the 7
89	89	property of a third party by means of a known forgery or false document or instrument. 8
90	90	(h) Any person violating the provisions of subsection (g) of this section shall for a first 9
91	91	offence by guilty of a felony be and subject to imprisonment for not more than ten (10) years, and 10
92	92	a fine of not more than fifty thousand dollars ($50,000), or both. A person violating the provisions 11
93	93	of subsection (g) of this section by a pattern of real estate title fraud shall be guilty of a felony and 12
94	94	subject to imprisonment for not more than twenty (20) years, and a fine of not more than one 13
95	95	hundred thousand dollars ($100,000), or both, and/or an order of restitution to any victim. 14
96	96	(i) Any owner of real estate who is a victim of a person violating the provisions of 15
97	97	subsection (g) of this section, in addition to any other remedy that may be available at law or equity, 16
98	98	may bring an action against an individual who has knowingly filed, entered, or recorded, or caused 17
99	99	to be filed, entered, or recorded, in any public record a false or forged deed or other instrument 18
100	100	purporting to convey the owner’s interest to such real property to such individual or a third party 19
101	101	or purporting to encumber the owners interest in such real property to; 20
102	102	(1) Recover the owner’s actual damages caused by the filing, entering, or recording of such 21
103	103	false or forged deed or other instrument or five thousand dollars ($5,000.00), whichever is greater; 22
104	104	and 23
105	105	(2) Recover the owner’s costs incurred in bringing such action, including reasonable 24
106	106	attorney’s fees. 25
107	107	(j) Nothing in this section shall be construed as creating a cause of action against any public 26
108	108	official or employee, including without limitation, a municipal clerk or any employee or agent of a 27
109	109	clerk of a municipality for actions taken in the performance of the clerk’s duties. 28
110	110	SECTION 2. This act shall take effect upon passage. 29
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117	117	EXPLANATION
118	118	BY THE LEGISLATIVE COUNCIL
119	119	OF
120	120	A N A C T
121	121	RELATING TO CRIMINAL OFFENSES -- FRAUD AND FALSE DEALING
122	122	***
123	123	This act would establish the criminal offense of real estate title fraud. Additionally, this act 1
124	124	would require that individuals making unsolicited offers to purchase real estate provide warnings 2
125	125	that the offer may not be for fair market values and/or for less than the assessed value. This act 3
126	126	would also require that municipalities that allow remote filing of electronic instruments shall 4
127	127	receive sufficient documentation to positively identify the filer. The act would also create a private 5
128	128	cause of action for victims of real estate title fraud. 6
129	129	This act would take effect upon passage. 7
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