Most homeowners don’t think twice about the security of their property title until it’s too late. Title fraud, also known as deed theft, is a serious and often overlooked crime that can result in the loss of your home, even while you’re still living in it. This article is based on information from the National Association of REALTORS® and can be found on facts.realtor.

What Is Title Fraud?

Title fraud happens when someone illegally transfers ownership of your property without your knowledge. Scammers do this by forging documents, using fake IDs, and filing false deeds with the county recorder’s office. In some cases, they may try to sell your property or take out loans using your title, all without your consent. If the fraud goes undetected, you could face foreclosure, eviction, or lengthy legal battles to reclaim your rights.

How Does It Happen?

The most common scenario involves a scammer forging your signature to transfer your property’s title into their name. Once recorded, this fraudulent deed can be used to sell the property, rent it, or secure financing. These actions may not raise immediate alarms unless someone is closely monitoring the property records.

Who Is Most at Risk?

Scammers often target:

• Vacant properties or lots
• Second homes or rentals
• Homes owned outright with no mortgage
• Elderly or absentee owners

These homes are seen as easy targets since changes in ownership may go unnoticed for extended periods.

Spotting the Red Flags:

• A seller offering a vacant home well below market value
• Reluctance to speak on the phone or via video
• Insistence on using their own remote notary
• Changes in mail delivery or tax bills suddenly stopped

If you're buying property, working with a REALTOR® can help you steer clear of these traps. REALTORS® use trusted title and escrow companies and follow secure procedures to help ensure your purchase is legitimate and your ownership properly recorded.

How to Protect Yourself

Here are a few steps you can take to reduce your risk:

• Sign up for property fraud alert services if available in your county
• Periodically check public records and tax statements
• Keep all ownership documents secure
• During a home purchase, verify wiring instructions by phone to avoid related scams
• Buy owner’s title insurance, which protects you from fraudulent claims on your property

Why Title Insurance Matters

Title insurance is a one-time purchase that provides lasting protection. If a fraudulent deed is ever discovered, it can cover legal fees and potential losses. Most lenders require it, but buyers should also consider purchasing an owner’s policy to protect their own interest in the property.

Signs You May Already Be a Victim

Be on the lookout for:

• Mail addressed to someone else arriving at your home
• Missing property tax bills
• Unexpected contact from banks or government agencies

What to Do If You Suspect Fraud? (Hint, Act Quickly)

• File a report with the FBI’s Internet Crime Complaint Center
• Contact local law enforcement and your county recorder
• Reach out to a real estate attorney
• Notify your title insurance provider (if applicable)
• Place a fraud alert or credit freeze on your accounts

While title fraud isn’t common, when it happens, it can be devastating. Whether you’re a current homeowner or in the process of buying, the best protection is awareness and proactive monitoring. Your REALTOR® is a key partner in making sure your transaction is safe and your title is secure.

For more information, visit facts.realtor and consult with your trusted real estate professional or legal advisor.

Summer Knight is a Santa Barbara native and top producing Realtor at Sun Coast Real Estate.  Summer has been a member of the Santa Barbara Association of Realtors for over 20 years and currently serves as the President of the Board of Directors. Reach Summer at 805-886-1261 or summer.k.knight@gmail.com.