False Liens and Fraudulent Documents

A. A person purporting to claim an interest in, or a lien or encumbrance against, real property, who causes a document asserting such claim to be recorded in the office of the county recorder, knowing or having reason to know that the document is forged or groundless, contains a material misstatement or false claim or is otherwise invalid is liable to the owner or beneficial title holder of the real property for the sum of at least $5,000 or for treble the actual damages caused by the recording, whichever is greater, and reasonable attorney fees and costs of the action. B. The owner or beneficial title holder of the real property may bring an action pursuant to this section in the superior court in the county in which the real property is located for such relief as is required to immediately clear title to the real property as provided for in the rules of procedure for special actions. This special action may be brought based on the ground that the lien is forged or groundless, contains a material misstatement or false claim or is otherwise invalid. The owner or beneficial title holder may bring a separate special action to clear title to the real property or join such action with an action for damages as described in this section. In either case, the owner or beneficial title holder may recover reasonable attorney fees and costs of the action if the owner or beneficial title holder prevails. C. A person who is named in a document that purports to create an interest in, or a lien or encumbrance against, real property and who knows that the document is forged or groundless, contains a material misstatement or false claim or is otherwise invalid is liable to the owner or beneficial title holder for the sum of at least $1,000 or for treble actual damages, whichever is greater, and reasonable attorney fees and costs as provided in this section, if the person wilfully refuses to release or correct the document of record within twenty days after the date of a written request from the owner or beneficial title holder of the real property. D. A document purporting to create an interest in, or a lien or encumbrance against, real property not authorized by statute, judgment or other specific legal authority is presumed to be groundless and invalid. E. A person purporting to claim an interest in, or a lien or encumbrance against, real property, who causes a document asserting such claim to be recorded in the office of the county recorder, knowing or having reason to know that the document is forged or groundless, contains a material misstatement or false claim or is otherwise invalid, is guilty of a class 5 felony. [Text as amended by SB 1479, Chapter 31, 2026, effective September 12, 2026.]