Notario and wire fraud: protecting your home and your money

Texas Government Code 406.017 makes it a crime for a notary to use "notario" or "notario publico" to advertise, to state or imply being an attorney, or to charge for preparing documents or representing someone before an agency or court, including immigration matters. It is a Class A misdemeanor, and a third-degree felony with a prior conviction.

A notary who advertises in another language must include, in English and that language, a notice that they are not an attorney, the fees they may charge, and this sentence: "I am not an attorney licensed to practice law in Texas and may not give legal advice or accept fees for legal advice".

The Texas Secretary of State says a notary may not change, alter or draft an instrument, or prepare, select or give advice about legal documents. If someone offers to "do your deed" or "the house contract", they are outside what the law allows.

Per the Secretary of State's fee table, a notary charges $10 for the first signature and $1 for each additional signature to take the acknowledgment of a deed. If someone wants hundreds of dollars to "notarize" or "fix the papers" on a house, ask what you are paying for.

A violation of section 406.017 also counts as a deceptive trade practice under Texas consumer protection law. In one case announced by the Attorney General against an El Paso notary, the suit sought civil penalties of up to $20,000 per violation.

An executory contract (contract for deed) looks like rent to own: you live in the home and pay, but the seller only delivers the deed once you finish paying. It is legal, but Texas has strict rules to protect the buyer.

The seller must record most of these contracts with the county within 30 days of signing. If it is not recorded, there is no public record of your right to the home.

The law requires the contract to be written in the language it was primarily negotiated in. If every conversation was in Spanish and you are handed something only in English, stop.

You have 14 days after signing to back out. The seller must give you a survey no more than a year old, tax certificates and an annual statement every January. After your final payment, the seller has 30 days to deliver the deed, with penalties of $250 a day after 30 days and $500 a day after 90.

The CFPB recommends naming two people up front, for example your agent and your title officer, to confirm the closing process and payment instructions with you in person or by phone.

Write down the phone numbers for your agent, lender and title company at the start of the purchase, from a source you control. Those are the only numbers you will use to verify.

Before any wire, call the title company at the number you already had and confirm the account name and number. Never use a phone number or link from the email with the instructions.

The Texas Department of Insurance warns about emails demanding an immediate response or claiming payment details changed. A last-minute account change is the most common sign of fraud.

The CFPB is clear: email is never a secure way to send financial information.

Right after sending the wire, call the title company and confirm the funds landed. If they did not, act immediately.

Ask immediately for a wire recall. The CFPB notes that reporting quickly improves the odds of getting the funds back.

File a complaint at ic3.gov, the FBI's Internet Crime Complaint Center. IC3 says that in some cases these reports allow stolen funds to be frozen.

Call them at the numbers you already had so they can stop the closing, check their systems and warn the other parties.

IC3 does not work with private fund recovery companies and will never contact you asking for information or money. Anyone offering to recover your loss for a fee is very likely another scam.

The Texas Attorney General takes consumer complaints online or by mail, and the complaint form is available in Spanish.

The Collin County Clerk offers a free alert that notifies you by email, text or phone when a document matching your property details is recorded. Sign up at collin.tx.publicsearch.us/property-alert.

Denton County has its own sign-up page at denton.tx.publicsearch.us/property-alert. If a change is recorded on your property's deed, you get notice in time to act.

If someone records a fake deed, finding out early lets you go to the county and an attorney before the criminal sells or borrows against the property. Signing up takes a few minutes, and it is one of the first things I recommend to clients after closing.