Unfortunately, fraudulent real estate transactions are on the rise, particularly title fraud. Since 2020, title fraud has ticked up due to an increase in remote and mail-away closings and notarizations. Title fraud is a crime wherein someone illegally assumes ownership of a property by manipulating or forging liens, deeds, or other documents related to a property’s title. This type of real estate fraud typically involves putting a document in the public record which gives the appearance that there has been a transfer of property ownership – and is done without the knowledge or consent of the legitimate property owner.
Title fraud can have severe financial and legal consequences for the victims. The title fraudster can potentially sell their property, secure a loan on it, rent it out, live in it etc. if they are successful at stealing the title using forged documents and the legitimate owner’s personal information. People are out to take advantage of the equity homeowners have developed —there is a lot of money going through real estate transactions which makes them targets for these schemes.
One crucial decision you can make in purchasing a home is acquiring title insurance, a safeguard that will protect your property rights. If you become a victim of title fraud, you may have coverage under your title policy. Some forms of title insurance even protect homeowners from future fraud. If you become a victim of title fraud, you may also want to connect with a lawyer to determine if their assistance is needed to clear your chain of title. Finally, you should call the county recorder’s office where your property is to notify them of the fraud as well.
As always, please keep your wits about you when engaging with your real estate transactions. Do not share any of your personal information with anyone outside of your real estate agent, escrow officer, and lender (if applicable). Additionally, confirm that you have their correct contact information to avoid mistakenly sending your information to the wrong party. Remember that title fraud can be financially devastating, so it is essential to take proactive steps to protect your property title and personal information. Purchasing title insurance, being vigilant, and staying informed are your best defenses against title fraud. Contact your local Placer Title team today to protect your title.