Deed Fraud

Deed fraud, also called home title fraud, title theft, or house stealing, is the illegal transfer and recording of a real estate title without the knowledge or consent of the legal owner. They are attempting to “sell” property to innocent buyers, or borrow against property from unsuspecting lenders, by forging the signatures of the true owners. Most of these attempts are perpetrated against unimproved land or vacant property where the owner is not present.

The fraudsters typically request that the transaction is handled remotely so the bad actor does not have to appear at the title company. The bad actor then either conspires with a notary, tricks a notary with a fake ID, or fraudulently reproduces the seal and signature of a notary, in order to produce a document that appears valid on its face. Many times, the real owner does not even discover that a fraudulent deed or lien has been filed until the real owner goes to sell or refinance their property, and the title search reveals the forged documents.

Resources

• ALTA Fraud in Real Estate Brochure

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News

TLTA coverage and more information about this issue.