Scammers Can Take The Title To Your Home Without You Knowing It
Scammers Can Take The Title To Your Home Without You Knowing It
3 critical ways to protect yourself in 2025
Christy Bieber Mon, January 13, 2025 Moneywise
Real estate fraud takes many forms, but title fraud is one scam that's reportedly becoming more widespread. Title fraud happens when criminals — sometimes called title pirates — file fake documents to improperly transfer title to properties they don't own.
Title is used to track legal ownership, and when someone transfers the title to themselves, they become the owner of record. This often happens when someone files a fraudulent deed with the local county office. This may involve forging signatures or even the use of artificial intelligence.
“The targets of these crimes are often properties that are free of loans and owned by absentee owners or others who may not closely monitor their property records,” wrote Dax Junker real estate attorney in MortgagePoint magazine.
“Once they gain control of the title, fraudsters will try selling the property to unsuspecting buyers, securing loans against it, or renting it out to someone. The legitimate owner is often completely unaware of the fraud until they face an eviction notice or discover liens taken against their properties, at which point they face a significant legal battle to reclaim their rights.”
Sadly, undoing the scam requires going to court. "The person who forged the deed is now the property owner," real estate attorney Arash Sadat explained to ABC7 Eyewitness News. "So, for you to get title back to that property, they would have to either grant you a deed, restoring your property or you have to go to court and have the court make an order saying you are the titled owner of this property."
This is why stopping this scheme from happening in the first place is so crucial. Fortunately, there are a few key techniques you can use to avoid this happening to you.
Sign up for alerts
There are services that homeowners can sign up for that alert them when any change is made to a deed, mortgage, or other official record.
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Some of these services are paid services, offered by companies that promise to monitor the status of your property and alert you to problems. However, before signing up for a paid plan, you should check with your local officials.
There may be free options that provide similar alerts. For example, in Florida, most counties allow you to sign up for alerts via email if any changes are made. You can just go online at the FL Clerk's website to find your county and get set up.
You should do this ASAP because, as the Florida Court Clerks & Comptrollers explain, doing so can "stop criminals in their tracks," as you'll be alerted to issues immediately and can take swift action if any papers are filed in your name or on your property that you don't recognize.
You can also set up online search alerts for your property to make sure it never gets put on sale without your knowledge and ask neighbors to inform you if they see anything suspicious.
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