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Alerts Warn Homeowners Of Deed Loophole

Anyone With Signed Deed Can Transfer Ownership

POSTED: 6:04 pm EDT September 9, 2009
UPDATED: 8:53 pm EDT September 10, 2009

A new e-mail alert system will warn homeowners if someone's trying to take control of their property through a loophole in the county code.

Anyone with a notarized deed can claim the property at their county's recorder's office with a quit claim deed, which allows people to transfer home ownership, Call 6's Rafael Sanchez reported.

County officials are not allowed to require a person to show ID to begin the transaction.

"We ask for ID, but state law doesn't require you give us ID," said Marion County Chief Deputy Recorder Michele Pero.

She said at least 100 cases of fraud involving the loophole take place each year.

In 2006, Marion County Sheriff Frank Anderson went to court after a company claimed that it had the signature of one of his relatives on a deed, even though the family member had been dead since 1989. The case was eventually settled.

A new system will allow homeowners in 19 counties to request an e-mail alert within 48 hours if anyone files a document involving their property.

"We're hoping that 24 to 48 hours will stop the property from being out of your name," Pero said.

Some Indianapolis homeowners said they would take advantage of the alert system.

"That bothers me that somebody can just take that and do that," said Max Marshall. "I would have never guessed there was a loophole that could do that."

If fraud is suspected, homeowners would have to take legal action against the people claiming their property. To fix the loophole, the Legislature would need to change the state law.

More Information: Alert System Information
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