Understanding Deed Theft and Protecting Your Property
In recent years, a disturbing real estate scam has emerged: criminals transfer property deed documents into their names and resell the property as though they own it, leaving unsuspecting homeowners blindsided. Known as “deed theft” or “title theft,” this scam enables fraudsters to assume ownership of property without the true owner’s knowledge. Once they have falsely transferred the deed, they may secure loans against the property, rent it, or even resell it to innocent buyers. This growing issue poses a significant risk, particularly for those who own property without a mortgage, as these properties are not actively monitored by a lender.
The mechanics of deed theft are alarmingly simple. Fraudsters start by obtaining publicly accessible property records that reveal the names of property owners. With a little digging, they may gain access to sensitive personal information, enabling them to falsify documents. They then file a fraudulent deed transfer, signing the documents by forging signatures of the real owners and transferring title to themselves or an assumed name. This transfer is then filed with the local county recorder or similar authority, effectively updating the property’s title to reflect the scammer as the new “owner.” By the time the legitimate homeowner discovers the theft, the fraudster may have already leveraged or resold the property, complicating any path to recovery.
Fortunately, there are measures homeowners can take to reduce the risk of deed theft. Property owners should regularly check property records in the county where the property is located to ensure the title remains in their name. Many counties offer electronic alerts for changes to property records, which can immediately notify homeowners of any unauthorized activity. Title lock services are another option; they monitor title records and inform the homeowner of changes. Some jurisdictions may even permit owners to add a “property watch” service that sends alerts for any changes. Additionally, safeguarding personal information, especially online, and using strong security measures can help prevent thieves from accessing the personal data they need to complete this type of fraud. Keeping a “freeze” on the property owners’ credit reports can further limit access to personal information.
If a homeowner suspects or finds evidence of deed fraud, it is crucial to act swiftly. Contacting local law enforcement, the county recorder’s office, and consulting with a real estate attorney can be the first steps toward reclaiming ownership. While the legal process to restore ownership may be challenging, immediate reporting can help prevent further transactions and mitigate damage.
Contact the professionals at McGarvey PLLC if you suspect a deed to your real property has been compromised. mcgarveypllc.com
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Understanding Deed Theft and Protecting Your Property
A disturbing real estate scam has emerged: criminals transfer property deed documents into their names and resell the property as though they own it.
Why Title Insurance May Not Protect Against Deed Theft
Homeowners often mistakenly assume that title insurance will protect them from all potential issues with their property’s title, including deed theft.
How to Reclaim Your Property and Protect Yourself in the Future
In situations where title insurance does not cover the loss, homeowners may need to rely on other resources.
