By Kent Berk on May 7th, 2025 in PROBATE LITIGATION
Introduction
In April 2025, the Arizona Supreme Court issued a landmark decision in Estate of Magdalena Rios De Dominguez v. Renee Kay Dominguez, sending shockwaves through Arizona’s real estate and elder law communities. The Court ruled that a facially valid, yet allegedly forged deed, could still trigger the five-year statute of limitations under A.R.S. § 12-524 to quiet title. While the case is far from over, the decision raises critical questions about protections for vulnerable property owners, especially the elderly.
The Case Background
The dispute centers on a vacant lot in Maricopa County. Magdalena Rios De Dominguez claimed that a 2003 deed transferring the property to her daughter-in-law, Renee Kay Dominguez, and Renee’s late husband, was forged. Nevertheless, the deed appeared valid on its face, and Renee had paid property taxes and asserted ownership for over five years.
The Arizona Supreme Court assumed for the sake of argument that the deed was forged. Yet it held that because the deed was facially valid and Renee had acted as the owner for over five years, the statute of limitations barred Magdalena’s claim. The case was remanded to consider other equitable issues, including the potential tolling of the statute.
The Risk to Vulnerable Adults
The Court acknowledged a troubling reality: this ruling may increase the risk of exploitation, particularly for elderly or impaired individuals who may not be aware that their property has been fraudulently transferred. The Arizona legislature has enacted the Adult Protective Services Act (APSA) to shield vulnerable adults from abuse and exploitation, including in some cases deed fraud. However, APSA only applies if the wrongdoer is in a “position of trust and confidence” to the vulnerable adult.
This leaves a potential gap in protection. If a stranger forges a deed and pays taxes on the property, the APSA may not apply. In such situations, a property owner may lose their rights without any recourse if they do not discover the fraud within the five-year statutory window.
Protecting Vulnerable Adults from Deed Fraud
In our examination of the Arizona Supreme Court’s decision in Dominguez, we discussed how a forged deed can start the statute of limitations before the victim knows about the fraud. This case emphasizes the significant risk of deed fraud, particularly for vulnerable adults who may not actively manage their properties.
For fiduciaries or those representing fiduciaries, it’s crucial to adopt proactive measures to protect those we serve. Early fraud detection systems are vital.
️ Steps to Mitigate Deed Fraud Risk
- Pay property taxes promptly to prevent tax liens or fraudulent property loss.
- Keep addresses current with the County Assessor and Treasurer to receive important notices.
- Use the County Title Alert system to get notified of any document recorded under monitored names.
- Obtain a title report to ensure the correct title holder and address any title defects early.
The Dominguez case highlights the urgency: once fraud happens, time is already ticking. Act now to safeguard those who can’t protect themselves. Do you have other strategies to protect vulnerable adults from deed fraud?
Do We Need Legislative Reform?
The Dominguez decision invites serious reflection. Should the law presume that anyone forging a deed is, by that act alone, in a position of trust and confidence to the victim? Should Arizona amend A.R.S. § 12-524 to prevent fraud from starting the clock on the statute of limitations?
Without reform, the law may inadvertently favor fraudsters who act quickly and quietly. Vulnerable adults—who may already face physical, mental, or financial impairments—could be left without a remedy.
Conclusion
This decision is a call to action. Lawyers, legislators, and community advocates must consider whether current laws do enough to protect Arizona’s most vulnerable citizens from deed fraud. While the Court has clarified the law, it also pointedly left room for legislative change. The next move belongs to the Arizona Legislature. Every year, countless people lose their property for failing to pay taxes—some due to cognitive decline or other impairments, not abandonment. With the added risk of forged deeds, Arizona must decide: Will we step up to protect those who cannot protect themselves?
If you’re concerned about the risk of deed fraud or need help protecting a vulnerable loved one, don’t wait until it’s too late. Contact us at BerkLawGroup.com to schedule a consultation.
Have thoughts on this decision or suggestions for reform? Join the conversation in the comments below.
Watch these videos to learn more how to protect Arizona’s large population of vulnerable adults.
