Real Estate Title Fraud: Important Information for the Most Vulnerable
Discover how to identify scams, safeguard your property, and prevent expensive mistakes with expert advice from a certified Senior Real Estate Specialist®.
When dealing with real estate, large sums of money are often at risk. So, how can you protect yourself from title scams? Let's examine title fraud and discuss methods to safeguard yourself against it.
Title Fraud
Scammers can steal your identity and impersonate you, the rightful owner. Artificial intelligence has allowed people to do incredible things like recreating IDs and documents to assume someone else's identity. I have heard numerous stories of real estate professionals being contacted by fraudsters who attempt to list homes or land that they do not actually own. The goal is to sell these properties without anyone realizing that the fraudster is not the legitimate owner. Typically, contact is made remotely, with very little face-to-face interaction. Those most at risk include seniors, absentee owners, homeowners in probate, and those going through a divorce.
What can you, as the rightful owner, do to protect yourself?
Shred documents and avoid sharing sensitive information.
Visit your County Recorder or County Auditor websites to enroll in a free Property Alert Service. While you can pay for title monitoring, it's also wise to research these services and remain vigilant.
Purchase owner's title insurance when you buy the property. This insurance protects you from fraud and title issues. You only need to buy it once, and it will cover you for the duration of your ownership.
Visit your property. Be aware that there are for-sale signs on your land that you do not authorize.
Conclusion
As technology increasingly generates convincing documents, it creates a concerning environment for fraud. Fortunately, Realtors and title companies are receiving education on this topic to help identify and spot potential fraud. In my professional circle, I've heard more conversations about preventing title fraud than about successful cases where the fraudster succeeds. However, consumers must remain aware that individuals are always looking to exploit situations. It's always best to exercise caution and work only with trusted professionals.