1.How a Document is Presumed Fraudulent

Under SB 1734, a document may be presumed fraudulent under two main circumstances. First, if it is associated with a criminal conviction under Texas Penal Code provisions dealing with property offenses or public administration crimes. Second, if the document is identified in an owner’s affidavit and certificate of mailing filed under Section 5.0206 of the Texas Property Code, and no one files a rebuttal affidavit within 120 days. This framework is designed to streamline how property owners can challenge questionable documents that appear in public records, especially those filed without their consent or under suspicious circumstances.

2.The Court Review Process

If a property owner suspects a fraudulent filing, they can initiate a formal process by submitting a verified motion to the district clerk. This motion must include a copy of the questionable document and either evidence of a criminal conviction or a previously filed affidavit that went unchallenged. Once filed, the case is reviewed by a district judge, who will issue findings of fact and conclusions of law to determine whether the document in question is legally valid or should be set aside. This process offers a direct judicial path to remedy fraudulent title activity, which previously may have required more expensive or uncertain legal strategies.

3.Filing an Owner’s Affidavit

One of the cornerstones of this law is the formalized affidavit process for property owners. An owner can file an affidavit and certificate of mailing to declare that a document is fraudulent or was recorded in error. If no opposing affidavit is filed within 120 days, the law presumes the document is fraudulent, and the property owner can proceed to seek a judicial determination. This provision encourages timely resolution while placing the burden on others to respond if they disagree with the owner’s claim.

4.Protections for Bona Fide Purchasers

SB 1734 also provides legal protection for bona fide purchasers or mortgagees for value who rely on the court’s determination of a document’s validity. This means that if a buyer or lender purchases a property in good faith based on court-reviewed records, they can be confident in the legitimacy of their interest—even if a fraudulent document was previously filed. This section of the law helps preserve market confidence and protect innocent parties from being pulled into title disputes.

5.What to Expect and How to Prepare

When SB 1734 takes effect on September 1, 2025, property owners, title companies, and real estate professionals will have new tools to resolve potentially fraudulent filings. The bill creates a faster, more structured route to challenge these documents through judicial review, while offering safeguards for purchasers and lenders who rely on public filings. Those working in real estate, mortgage servicing, or title work in Texas should review their document review and fraud detection procedures to be ready for the new framework.

You can access the full text of SB 1734 here: Texas SB 1734 Full Text