Texas has enacted new legislation aimed at curbing the growing issue of deed theft—a type of real estate fraud where criminals illegally transfer property titles from rightful owners to themselves. On July 19, 2025, Governor Greg Abbott signed into law Senate Bill 1734 and Senate Bill 647, two measures designed to provide greater protection for property owners and make it easier to challenge fraudulent deeds.
Overview of the Legislation
Senate Bill 1734 offers a major change by eliminating filing fees for property owners seeking to contest fraudulent deeds. Prior to this, homeowners had to pay substantial fees to file a claim in court, which often discouraged victims from taking legal action. This law will remove financial barriers, enabling property owners to challenge fraud more easily and restore their rightful ownership of properties that have been illegally transferred.
Senate Bill 647 empowers county clerks to more proactively scrutinize property deed filings. The bill requires county officials to carefully review suspicious filings before they are recorded in public property records, preventing fraudulent deeds from being processed. This proactive approach to deed fraud aims to protect property owners at an early stage, rather than waiting for victims to discover the fraud after the deed is already recorded.
Establishing a Property Fraud Alert System
In addition to SB 1734 and SB 647, the Texas legislature has established a statewide property fraud alert system. Under this new initiative, homeowners will receive notifications if a deed transfer is attempted on their property. This alert system will provide an early warning, giving homeowners the opportunity to intervene and challenge the fraudulent action before it is completed.
These initiatives are part of a broader push to address the growing concern of property fraud in Texas, particularly in urban areas like Houston, where real estate transactions are frequent, and fraudulent schemes are on the rise. The new laws are designed to increase transparency in real estate transactions and ensure property owners can protect their investments.
Impact on Property Owners and Real Estate Professionals
The impact of these legislative changes will be significant for property owners and real estate professionals alike. Property owners will now have clearer legal avenues to contest fraudulent deeds and will face fewer obstacles in defending their ownership. By removing filing fees and increasing oversight by county clerks, the new laws make it easier for homeowners to address fraudulent transfers swiftly and with less financial burden.
For real estate professionals, these changes mean they will need to be more diligent in verifying property ownership and ensuring the legitimacy of deeds before transactions are finalized. The new property fraud alert system will likely become a key tool for agents to help protect clients and avoid potential legal disputes. The changes should enhance the trust that buyers and sellers place in the property transaction process, leading to a more stable and transparent real estate market.
The Broader Picture: Combating Property Fraud in Texas
These legislative actions represent Texas’s commitment to protecting homeownership rights and addressing emerging threats to the real estate market. As fraudsters increasingly target property deeds, the new laws serve as a critical step in safeguarding the interests of property owners and ensuring the integrity of real estate transactions across the state.
The focus on early detection, preventive measures, and easier access to legal recourse is expected to significantly reduce the impact of deed theft, especially in rapidly growing urban areas. This law sets a national example of how states can take proactive steps to protect homeowners and reduce fraud within the real estate sector.
