Deed Scams
12/18/2024
Deed Scams
Scam alert! Deed fraud is on the rise and experts are warning that because it combines identity theft and real estate fraud, risks are even higher for the consumer. If you are a homeowner, real estate agent, or a home buyer, you need to be aware of the warning signs that a property may be part of a deed fraud scheme.
Deed fraud is especially risky because it combines two different types of fraud. The first is identity theft. The criminals in these cases will either use information on the current owners of a property to forge deed change requests or other official documents to make it seem like they are the owner of the property, or they will deceive the current owner into signing paperwork that transfers ownership to the scammer. The second type of fraud is real estate fraud. No matter which type of identity theft the criminal employs, they will then try to sell the property illegally. The actual homeowners, buyers, and real estate agents involved in the sale are often unaware of any of this happening. The timeline of events usually looks like this:
- The Scammer falsifies the deed of property or vacant land.
- They hire a real estate agent (usually unaware of the illegal activities) to list the property or land.
- An unsuspecting buyer purchases the property, and the scammer disappears with the money.
- The buyer is left with a property that isn’t legally theirs and the actual owner of the property is left trying to undo any legal mess in order to return the deed to their name.
If this seems like a headache for everyone involved, it’s because it is! The FBI states that Americans reported over $145 million in losses from real-estate fraud in 2023 alone, so homeowners and buyers need to stay alert (Ohio.gov). Unfortunately, the homeowners most likely to be targeted by these scams are the elderly. Many seniors hold a lot of equity in their homes and have paid off their homes. This makes it easier and more profitable for scammers to try to sell the property out from under them. Those who own properties that stay vacant several months out of the year are also at risk.
There are several ways, however, that homeowners can reduce the risk of becoming victims of this scam. One way is to sign up for notifications from your county. The county will then alert you of any attempts to change deeds or other ownership documents. Third party businesses are also available for hire to monitor your deed. Another way to is to keep an eye on all documents sent to your home. Make sure you receive property tax bills and insurance bills as expected. You should also always check the name on home-related documents to make sure the name has not changed. This would suggest someone has changed the name on the house’s deed.
If you are a homebuyer, it also pays to be wary. Your real estate agent should be able to guide you through most of what would be a red flag of a scam. Real estate agents should exercise their due diligence by verifying deeds and ownership disputes. However, it is important that you remain vigilant. Looks for deeds with multiple names that would require signatures. Do some research on the county auditor’s website. Most of all, never give in to pressure to complete the deal, especially if something feels off.
If you believe you may be the victim of a deed scam, contact your local law enforcement.
Sources:
https://www.aarp.org/money/scams-fraud/info-2023/deed-theft.html