Forged Deed, Someone Else's House: Texas Cracks Down on Deed Fraud

Deed fraud is a form of property fraud in which criminals file forged property transfers with the County Clerk (the local office that keeps land records) and so become the apparently lawful owners of a piece of land or a house.

The property is then either:

• sold, without the real owner knowing anything about it, or

• encumbered, for example with mortgages or other loans against the stolen property.

Unlike in many European countries, where a notary or registry plays a central role in transferring property, real estate transactions in Texas and most US states are purely document-based. A filed, notarized document is often enough to change the land records, even if its contents are forged.

One particularly striking case of deed fraud involved the First Christian Church in Lancaster, Texas.

Without knowing it, the church lost its property to fraudsters who had filed a forged transfer of ownership. The fraud only came to light when the tax office asked about the sale price.

What followed was a legal nightmare:

• 2 years to legally recover the property,

• 3 more years until the perpetrator was convicted,

• High legal fees and an enormous bureaucratic burden.

The case has since been presented to Texas lawmakers and helped build significant political momentum behind the new law.

Texas is one of the most popular US states for real estate investors from Europe. Low taxes, a booming property market and a growing population make cities like Austin, Dallas, Houston and San Antonio attractive.

But these very investors are especially at risk:

• They often live abroad and only oversee their properties from a distance.

• They don't know the local authorities in detail and rely on trustees, attorneys or property managers.

• A forged deed can be filed and recorded unnoticed, because the owners affected usually receive no mail at a US address or don't check the records regularly.

Without a local presence and professional monitoring, many victims don't notice for months that their property has been stolen.

The problem runs deep in the US system:

1. No central ownership database: Unlike many European countries, the US has no central land registry. Each county keeps its own property records.

2. Hardly any identity checks: Until now, County Clerks didn't have to check ID or any proof when someone filed a deed. Anyone presenting a document with a seemingly genuine signature could change the land records.

3. No specific criminal offense: There was no dedicated offense for deed fraud. Such cases had to be painstakingly prosecuted under general fraud statutes, with short limitation periods and few specialized investigators.

On August 6, 2025, the Texas Senate unanimously passed Senate Bill 15. The bill was introduced by Senator Royce West (Democrat, Dallas) and aims to better protect homeowners and investors from property fraud.

What exactly changes?

• Proof of identity becomes mandatory: County Clerks will have to require valid ID whenever someone files a deed transferring ownership of real estate.

• Clear procedural rules: The law sets uniform rules for how every county must handle property transfers. Until now, practices varied widely.

• Tougher criminal penalties (via SB 36): Together with another law (Senate Bill 36), new criminal offenses for real estate fraud are created and the statute of limitations is extended to 10 years.

• No overregulation for people of modest means: Unlike an earlier version of the bill (SB 648), which the governor vetoed in May 2025, SB 15 does not require homeowners to involve an attorney or notary, an important relief for ordinary owners.

One limitation: in-person filings only

A late amendment by Senator Hinojosa means that the ID requirement applies only to in-person filings. Anyone filing documents by mail or electronically could still exploit a gap in the system.

There are no exact statistics, because deed fraud hasn't been recorded as a separate offense until now. But some figures are alarming:

• In Dallas County alone, more than 100 cases of deed fraud were recorded in the first half of 2025.

• In Harris County (Houston), proceedings are underway against a married couple accused of taking more than 35 properties using forged ownership documents.

A spokesperson for the Dallas County District Attorney's Office said:

"It's a surprisingly big problem. Not widespread, but devastating for the victims."

1. Actively monitor your properties

• Check the land records for your property regularly (on the County Clerk's website).

• Sign up for property alert services in your county, where available.

• Use service providers who monitor the records for you.

2. Work with a local representative

Do you have a trusted person or firm in Texas looking after your interests? A Registered Agent or a property manager can react faster than you can from abroad when something looks wrong.

3. Use an LLC or LP as the ownership structure

Rather than holding the property directly in your own name, a structure like this is often the better choice:

• Texas LLC, ideally with a US mailing address,

• or an LP (Limited Partnership) with you as a limited partner.

These structures make it harder for fraudsters to act unnoticed, because documents also have to be signed and checked internally.

With Senate Bill 15, Texas lawmakers are showing that they take deed fraud seriously, not only for economic reasons but also in the interest of the rule of law.

That homeowners (whether a church, a grandmother or a foreign investor) could simply lose their property was a scandal. The new law brings more transparency and more security, and finally gives County Clerks the legal basis to examine documents.

But the work isn't done.

• The bill now has to pass the House of Representatives as well.

• How it works in practice, especially for online filings, still has to prove itself.

• And owners, especially those abroad, shouldn't sit back and wait.

Based in Texas, Mount Bonnell Advisors has advised international investors on buying real estate in the USA for many years. We help you with:

• forming LLCs and LPs for a secure ownership structure,

• local registered representation,

• and ongoing monitoring of your property rights.

👉 Book your consultation now. You'll find more articles on Texas and US real estate under News.

Consultation & implementation

If you'd like to find out what this means for your own situation, the best step is to book a consultation.