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Senate Finance Committee Advances Bipartisan Bill To Close Deed Fraud Loophole

February 4, 2026

By Ethan Faverino |

The Senate Finance Committee advanced SB 1254 last week. The bipartisan measure, sponsored by Committee Chairman J.D. Mesnard (R-LD13), is designed to strengthen protections for Arizona property owners against deed fraud and related disputes by closing a key loophole in real estate conveyance laws.

The legislation addresses a longstanding gap in state law that has left transfers vulnerable to fraud, confusion, and unexpected ownership changes.

Under current Arizona Law (A.R.S. § 33-401), deeds must be signed by the grantor, notarized, and recorded within specific timeframes. However, there is no explicit requirement to confirm the grantee’s acceptance of the property.

This omission can allow deeds to be recorded without the recipient’s knowledge or consent, potentially enabling fraudulent transfers or leading to costly legal disputes.

SB 1254 amends Section 33-401 of the ARS to require documented acceptance by the grantee before a deed can be recorded with the county.

Acceptance can be demonstrated in ways such as the grantee’s signature (or the signature of their authorized agent, if properly documented in writing) directly on the deed, or a simple certificate or resolution of acceptance attached to or printed on the deed.

The bill provides a sample form for such a certificate:

“This is to certify that the interest in real property conveyed by the deed or conveyance to (name of grantee) is accepted and the grantee consents to the recording of the deed or conveyance.”

“This legislation is about making sure the system works the way people reasonably expect it to,” stated Senator Mesnard. “No one should ever be surprised to learn their property changed hands because of a paperwork loophole. Property rights are fundamental, and this bill reinforces those rights by requiring clear agreement from both sides of a transaction. It’s a straightforward fix that prevents confusion, reduces disputes, and helps guard against fraud, without adding cost or bureaucracy.”

With committee approval secured, SB 1254 now advances to the full Arizona Senate for further consideration. If enacted, the changes would apply to future real property conveyances across the state, providing an additional layer of protection amid ongoing concerns about deed fraud and title issues in Arizona.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.

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