Deed fraud can happen to you as the rightful owner of real estate property and you may not even know the fraud happened until it is too late. Unfortunately, there are no national statistics on deed fraud or what is also known as title theft. However, the FBI’s 2023 Internet Crime report tracked 9,521 complaints of cyber related real estate and rental fraud with losses exceeding more than $145 million. (Source New York Post)
Per an October 2023 survey conducted by CertifID, 54% of real estate professionals reported having experienced at least one seller impersonation fraud attempt within the last six months. Additionally, 77% of those same professional indicated to have seen an increase in seller impersonation fraud attempts within the past six months. (Source: American Land Title Association - ATLA)
Deed fraud is sometimes connected to squatters who have nefariously changed the address of the tax bill or created fraudulent documents such as leases allowing adverse possession of the property. Then there are those entities who sell properties without using a title firm or a false title firm and securing fake title insurance.
To prevent deed fraud begins by checking with your local city or county assessor and/or recorder to confirm your property, the deed, is still in your name with the correct addresses. This checking should be conducted on a regular basis especially if:
- The property is owned free and cleared (no mortgage or loan)
- The property is vacant land
- The owners are elderly
- The owners are investors
- The property has never been physically visited which may also have squatters on the vacant land who may seek adverse possession depending upon the state's laws
Next, learn if your local government officials have any programs in place for deed fraud protection. Here in Mohave County, AZ, the county assessor established the Assessor’s Address Protection Program. This program requires legal photo identification with current property address along with address for the mailing of the tax bills. Then a fingerprint is taken and all documents are notarized. There is a one time fee of $50.00. Now your address is locked and cannot be changed without showing proof.
Another solution when selling or buying real estate from a private individual(s) or other entities often listed as For Sale By Owner is to insist on going through a legitimate title agency. Do your research to make sure the title agency actually exists. Check with the Better Business Bureau if in doubt or the state registration for corporate entities.
Now is the time to be proactive, sign up for deed fraud protection so you are not a victim to deed fraud.
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Feature Photo Courtesy of Leanne M Smith
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