The Dominguez Case and Deed Fraud: Who Criminals Target and How to Protect Yourself Against Fraud

By Lauren P. Merdinger, Ryan D. Konsdorf, and Jordin Pettit

Arizonans should be aware of a recent decision from the Arizona Supreme Court that increases consequences for unsuspecting victims of deed fraud. Deeds are official documents that memorialize the owner of real property. When real property is bought, inherited, or otherwise conveyed, the deed is transferred to the new owner, who formally records the document with the county in which the real property exists to signify a change in ownership. However, scammers can create fraudulent deeds by forging landowner’s signatures, purporting to transfer the real property without the rightful owner’s consent. The Arizona Supreme Court’s recent ruling in Dominguez will impact victims of deed fraud moving forward, as it holds that if certain conditions are met, a recorded fraudulent deed can strip landowners of their property rights.¹

The Case

In Estate of Magdalena Rios De Dominguez v. Renee Kay Dominguez, the Arizona Supreme Court was asked to address a family dispute over an unoccupied piece of real property in Maricopa County.² In 1995, Magdalena and Isidro Dominguez acquired the property in question. After the couple divorced in 1998, their son Jose and his wife Renee recorded a deed in 2003 purporting to convey the property to themselves, and Jose and Renee began paying the taxes on the property from thereon. In 2020, Magdalena discovered the 2003 recorded deed and claiming it was forged, filed a “quiet title” suit asking the Court to declare her the rightful owner of the property.

The Arizona Supreme Court ruled against Magdalena, agreeing with the lower courts that Arizona’s five-year statute of limitations barred her from filing suit. Under the statute at issue in Dominguez (Arizona Revised Statute § 12-524), if an individual (1) has a recorded deed to the property, (2) claims ownership of the property, and (3) pays all taxes for the property for a period of five years, then that individual is deemed the owner.³ The Arizona Supreme Court held that even a fraudulent deed qualifies as a “recorded deed” under element (1) because on its face, the document appears to be a valid conveyance.⁴ Given that the other statutory elements were fulfilled, Jose and Renee were found to be the owners of the property.

The Impact

The Court’s decision in Dominguez has far-reaching implications for Arizona homeowners and their loved ones. If a scammer has been paying taxes on your property, failing to identify a forged deed within five years of it being recorded can now result in forfeiture of your land. As criminals prey on individuals who are less prone to notice their fraudulent activity, empty homes, rental properties, and homes owned by corporations, people who live outside Arizona, or by a person who recently passed away are all targets for fraudsters.⁵

While it can happen to anyone, deed fraud disproportionately impacts the most vulnerable members of our population. Those who “mistakenly put their trust in others to manage their financial affairs”⁶ are at a high risk, including elderly individuals who rely on others to assist with estate planning and property management. This decision also raises concerns for landlords whose long-term leases require the tenant to pay taxes independently.

Deed fraud is only becoming more prevalent. Nationwide, the FBI reported over $173 billion in losses from cyber-enabled real estate fraud in 2024.⁷ Arizona’s own Attorney General’s Office warned against an increase in deed fraud in recent years, stating in a 20-month period their office had received more than 65 complaints from homeowners claiming their home was no longer in their name after scammers recorded deeds with forged signatures.⁸ While Dominguez highlights the long-term consequences of deed fraud, criminals can cause damage almost immediately by taking a mortgage out on your property, renting, or even selling your home.⁹

How to Protect Yourself Against Fraudulent Deeds

Arizonans should take steps to protect themselves and their loved ones from deed fraud, as reclaiming a deed once it has been fraudulently transferred can be very costly and now under Dominguez, may even result in loss of property. The sooner a fraudulent deed is identified, the faster law enforcement and professionals can identify the perpetrator and protect your property.

Effectively, Dominguez incentivizes homeowners to monitor their respective county assessor’s office for fraudulent deeds that may be recorded. In 2023, Maricopa County released “Maricopa Title Alert,”¹⁰ a free online reporting service that notifies property owners when a document has been recorded with respect to their property. Individuals can register for updates with a valid email address and personal or business name and when documents matching those names are recorded, the system alerts the user with a link to view the registered document. Other counties across Arizona have created similar programs,¹¹ or are anticipating to in the near future. Homeowners should also promptly pay their property taxes and should periodically check the Assessor’s and Treasurer’s website to confirm they have the correct mailing address on file.

For vulnerable loved ones, individuals should thoroughly vet those in charge of their financial and property management, as many perpetrators of deed fraud are in close relationships with their victims. Further, now that the consequences of overlooking a forged deed have heightened, those with fiduciary responsibilities should be aware of their increased liability, as failure to identify a fraudulently recorded deed may result in a breach of fiduciary duty action against them.

Conclusion

The Arizona Supreme Court’s recent decision in Dominguez creates devastating consequences for homeowners ignorant to schemes designed to rob owners of their property. When a fraudulent deed is recorded, quick response and professional advice will help to protect you and your loved ones from loss of property.