We are all familiar with vacant lot or vacant property scams. These particular scams involve a criminal posing as the true owner and attempting to sell the true owner's property. The criminal is able to obtain detailed property information and the owner's identity by conducting a search of public records. The 'seller' will not attend closing but will manage to get closing documents executed, typically with a falsified notary. Their end goal is to get the net proceeds and disappear before anyone, including the real owner, knows what has happened. They will enlist the assistance of a real estate professional to list the property in an attempt to add a layer of legitimacy to the scheme. As REALTORS®, you may even know some people who have been victims or you might have been contacted by some of these criminals that are posing as the true owner of a property. *

Newly passed Senate Bill 1523, will make it illegal for any person to file a deed that is fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property. Here are the highlights of SB 1523:

• It requires all counties in Illinois to establish a property fraud alert system where property owners can register their properties. This alert system would then notify the owner when a document is recorded that relates to the registered property.
• Every recorder's office should establish a fraud referral and review process to review deeds and instruments. The recorder may refer to an administrative law judge any deed or instrument that the recorder reasonably believes may be fraudulent, unlawfully altered or intended to unlawfully cloud or transfer title.
• Allows for a private cause of action for owners who fall victim to fraudulent recordings.

Many counties already have a property fraud notification system in place at their recorder of deeds office to assist in tackling deed fraud. Check your local recorder of deeds office to see if their alert system is currently available.

Illinois REALTORS® supported this bill that is intended to stop title transfer scams we are seeing across the nation and occurring here in our state. SB 1523 is now Public Act 104-0382 and becomes effective Jan. 1, 2026. The bill was introduced by Senator Doris Turner from Springfield.

* For red flags and suggested best practices, please review and share our Vacant Property Scams flyer.