Deed & Title Fraud: What You Need To Know

Have you ever received a call to help sell a property that just didn’t seem right? Perhaps the seller claimed they needed to quickly sell a property they inherited from their family, that they can only communicate via email and text and they want to list below market value for a quick sale? 

Are you seeing the red flags? This scenario could likely be a deed or title fraud, a growing threat in today’s real estate landscape. 

Deed and title fraud occurs when someone illegally transfers ownership of a property without the knowledge or consent of the rightful owner. These scams often target vacant land, rental properties, second homes, and homes owned by individuals who live out of state or are elderly.

Using forged documents and fake identification, fraudsters can record a fraudulent deed with the county, making it appear as though they legally own the property.

Once the fraudulent deed is recorded, the scammer may attempt to sell the property, take out a mortgage, or collect rental income; all while the actual owner remains unaware. 

In the event a scammer attempts to sell the property, they may enlist an unwitting participant: a REALTOR®. But there’s ways to protect yourself, and your clients from these ne’er-do-wells. 

Iowa REALTORS® has compiled a list of red flags, tips and other important information you can use to avoid deed and title fraud scams in the future. Take a look at our easily shareable handout below!