What Is Deed Fraud and How to Prevent It What Is Deed Fraud and How to Prevent It

Deed fraud or home title theft—is a growing threat to homeowners across the country. Criminals are finding new ways to forge property documents, steal your home ownership rights, and profit from homes they don’t actually own. Understanding how deed fraud works and how to protect yourself and your home is essential to safeguarding your most valuable asset.

What Is Deed Fraud?

Home title theft occurs when someone illegally transfers ownership of your property away from you without your knowledge or consent. This is typically done by forging your signature on a deed and filing it with the local recorder’s office. Once the new, fraudulent deed is recorded in the county property registry, the criminal may sell the property, take out loans against it, or rent it out—all while you remain unaware.

How Does Deed Fraud Work?

Deed fraud often begins with identity theft. Criminals gather personal information—sometimes through phishing, mail theft, or public records—and use it to impersonate the homeowner. They then forge a deed, often using a fake notary stamp or unethical notary, which transfers the title to your property to what is often a shell company or a third person, and file it with the county recorder’s office. Unfortunately, the county recorder’s office has no way of determining if the filed deed is legitimate or fraudulent.

Because property records are public, the forged deed may appear legitimate. By the time the homeowner discovers the fraud, the property may have been sold or saddled with debt.

What Are the Warning Signs of Deed Fraud?

Early detection of scams is key. Watch for these red flags:

• You stop receiving property tax bills or notices

• You receive mail addressed to someone else at your property

• You’re notified of a mortgage or loan you didn’t apply for

• You discover your name has been removed from the deed

• You receive unsolicited offers to buy your home

If any of these occur, investigate immediately.

What Can a Criminal Do With Your Deed or Home Title?

Once a criminal gains control of your deed, they can:

• Sell your home to an unsuspecting buyer

• Take out a mortgage or home equity loan

• Rent the property and collect income

• Use the property as collateral for other fraud

In worst-case scenarios, property owners may face liens, foreclosure or legal battles to reclaim ownership.

How to Protect Your Home from Deed Fraud

Here are proactive steps to help prevent this type of serious crime and protect your property:

1. Monitor Property Records

   • Regularly check your property’s status with your county recorder’s office. Many counties offer free fraud alert services that notify you of any recorded activity under your name or property address.

2. Secure Personal Information

   • Protect sensitive documents, shred mail with personal data, and use strong passwords for online accounts. Avoid sharing personal info over unsecured channels.

3. Check Your Credit Reports

   • Unusual activity—like new loans or inquiries—can signal identity theft. Review your credit reports regularly for signs of fraud.

4. Use Title Insurance

   • Some title insurance policies offer protection against deed theft. Check with your provider to see what coverage is available.

5. Be Cautious With Offers

   • Unsolicited offers to buy your home—especially those that seem too good to be true—should be carefully vetted. Scammers often use pressure tactics to rush decisions.

How to Correct a Fraudulent Deed Filing

If you suspect deed fraud, act quickly:

1. Review the Recorded Document

   • Visit your county recorder’s office or online portal to access the deed. Look for unauthorized changes or signatures.

2. Report to Authorities

   • File a report with your local police department and the FBI’s Internet Crime Complaint Center (IC3).

3. Notify the County Recorder

   • Alert the recorder’s office about the fraud. They may guide you through steps to dispute and correct the record.

4. Consult a Real Estate Attorney

   • Legal help is essential. An attorney can help you file a quiet title action to reclaim ownership and remove fraudulent claims.

Additional Tips to Stay Protected

• Register for fraud alert services in your county

• Avoid signing documents you don’t fully understand

• Verify the identity of notaries and professionals involved in property transactions

• Keep your contact information updated with local agencies to ensure you receive notices

Final Thoughts: Pros and Cons of Deed Fraud Protection Services

As with identity theft, there are companies who offer deed fraud protection services, which usually include things like monitoring and assistance with resolving disputes, for a monthly or annual fee.

Pros

• Early detection of fraud

• Peace of mind 

• Legal support and insurance options available

• Alerts for suspicious filings

Cons

• Some services may charge monthly fees

• Title insurance may not cover all types of fraud

• Legal resolution can be time-consuming and costly

Home title fraud is a serious issue—but with awareness and proactive steps, you can protect your home and your rights. Stay vigilant, monitor your records, and don’t hesitate to seek help if something seems off. Your home is one of your most valuable assets—make sure it stays yours.

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