It’s possible for someone to steal your home from right under your nose. Learn how to prevent it.
Key Takeaways
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- Criminals who commit home title theft try to take ownership of someone’s home under false pretenses.
- Title thieves may forge signatures or pressure homeowners to sign over their title.
- Protect yourself by talking to an attorney before signing documents and keeping a close watch on your title.
Homeowners need to be aware of house title theft, a type of fraud that threatens an individual’s ownership of their home.
Property fraud in general is a costly problem. The FBI reports that in 2024, it received 9,359 complaints of real estate crime, a category that includes home title theft. Real estate crime resulted in losses of nearly $175 million that year. And in April of 2025, the Boston Division of the FBI sounded the alarm about increasing reports of a form of home title theft involving forgery.
Attorneys agree that home title theft is on the rise. “Home title theft is absolutely rampant at this point,” says Neil S. Cohen, president and managing attorney at Barsh and Cohen.
What Is Home Title Theft?
Home title theft occurs when a criminal claims an individual’s title, or legal ownership of their home, under false pretenses. It involves recording a deed that transfers title from the homeowner to the criminal.
Home title theft can be a form of identity theft if the thief impersonates the homeowner when recording the deed.
How Do Home Title Theft Scams Work?
The most straightforward method of title theft is forgery. In this scheme, the criminal creates a deed transferring title to themselves or a third party and forges the homeowner’s signature.
“They’re going to get that from the prior deed that they find. These are public records, right? Anyone can go look it up,” says Alisha Melvin, attorney and real estate broker at Alisha Melvin Esq.
The criminal gets the fraudulent deed notarized or forges a notary’s signature and records the deed with the local government office. The laws governing how title is recorded vary by location, but often there are no questions asked.
“There are places that you just go and record this deed. You don’t even have to show your ID,” Melvin says.
Once a fraudulent deed is recorded, the criminal can immediately make money from the bogus claim to ownership in the property, before the homeowner even realizes that they were the victim of a crime.
“At that point, there’s a cloud on the chain of title that you thought was yours, unencumbered and not clouded,” Cohen says.
Alternatively, criminals may misrepresent themselves and persuade or coerce the homeowner to sign over the title to their home. The homeowner might be under the impression that they’re signing a document that will allow them to get help with their mortgage or that they’re giving someone a gift.
“It’s when someone signs over their interest in a property, but they don’t understand the finality of what they’re signing over,” says Aissatou Barry, assistant professor of law and director of the housing justice clinic at Brooklyn Law School.
Lastly, if a homeowner passes away and has multiple heirs, a criminal might approach one of those heirs and offer to pay them to sign over their interest in the property. The criminal then falsely claims ownership of the entire property when they actually gained only a small partial share.
After Title Theft Occurs
Following the fraud, the criminal might evict the homeowner and rent out the property to new tenants. Or, they might sell the property to an investor or take out mortgages using the property as collateral.
If the homeowner doesn’t receive an eviction notice, they may not learn that they were victimized until much later. Melvin says that one of her clients found out when she applied for a new home loan.
“The only way she knew is when she tried to do a refinance. They’re like, ‘You don’t own your home. It’s in this other company’s name,'” Melvin says.
Title theft also becomes apparent when someone tries to sell their home or when a probate attorney looks up title after a homeowner’s death. And some homeowners find out about title theft when they discover that their previously vacant property has been developed.
“You come home from living in South Carolina to go look at your vacant land that you thought you were going to build your retirement house on, and there’s a McMansion there that’s got seven bedrooms, five bathrooms, and is 7,000 square feet, and you didn’t approve any of it,” Cohen says.
Who Is Vulnerable to Title Theft?
Title thieves frequently target older adults, especially those who are isolated and who don’t have anyone to help them with their finances. Con artists may also prey on immigrant communities or people with low incomes.
Criminals may zero in on homeowners who have tax liens or utility liens on their homes, who are in default or foreclosure or who are seeking loan modifications.
Homeowners in neighborhoods where property values are rising and residents are being priced out may also be at risk of title theft. Barry says that criminals search for areas where some homes are abandoned or distressed, then target homeowners in the vicinity.
When a homeowner dies, title thieves may try to claim title to the property or scam the heirs out of their ownership in the property. And criminals may try to steal the title to vacant parcels of land or to unoccupied properties, such as rental buildings or vacation homes.
How to Spot Title Theft
Warning signs of title irregularities include changes in property tax bills, utility bills, and other communications related to the home. If mail stops showing up, or if it’s addressed to someone else, you should investigate.
You might receive notifications related to mortgages or home equity loans that you didn’t apply for.
Another red flag is your home being listed for sale without your permission. “If you see a multiple listing service listing your property for sale, or you get notified that it is for sale, you may want to then contact an attorney to do an abstract of your title to ensure that you haven’t been a victim of title fraud,” Cohen says.
How to Protect Your Title
Consider taking the following actions to protect yourself against title theft. Some steps may prevent fraud or deter criminals, while others can boost your chances of detecting fraud and successfully defending against it.
Consult an Attorney Before Signing Documents
If you aren’t able to meet with an attorney or a housing counselor, Barry recommends at least showing documents to someone who isn’t affiliated with the person asking you to sign them.
“It’s important that they have a third party look through documents and confirm that they’re not handing over their property. Speaking to a professional is always best, but I understand that not everyone always has access to that type of resource,” Barry says.
Buy Owner’s Title Insurance With a Fraud Endorsement
When you close on a home, purchase owner’s title insurance in addition to the lender’s title insurance, that is usually required when you have a mortgage. Check that the policy includes a provision protecting against title fraud after you buy your home.
Owner’s title insurance doesn’t stop criminals from committing fraud, but it can cover the legal expenses you incur when clearing your title after the fact.
Sign Up for Alerts Through Your County
Some local governments have set up alert systems that notify homeowners when new deeds are recorded for their address, free of charge. Ask your local records office or recorder of deeds if this service is available in your area.
Although alerts don’t prevent fraud, they can notify you when questionable documents are recorded so that you’re able to act right away to clear your title.
Pay for Title Monitoring
If your county doesn’t offer alerts, you could pay for a subscription service that monitors your title for you and notifies you when new documents are filed.
These services are sometimes marketed as “title lock insurance.” Despite the name, they don’t lock your title or insure against title irregularities. However, they can alert you after the fact to new deeds that are recorded.
Check Your Title Regularly
Look up your title at regular intervals to confirm that no fraudulent deeds have been filed. Barry recommends checking your title when you file your taxes to make sure you get it done each year.
Place Your Property in a Trust or an LLC
If you can hire an attorney to set up a trust or an LLC for you, these structures may add a layer of protection against title theft. It’s more complex to transfer ownership of a property out of a trust or an LLC than it is to transfer it between individuals, and the added steps needed to accomplish the transfer might deter some criminals.
Record a Transfer on Death Deed
Many states allow the creation of transfer on death deeds, which are legal documents that designate someone to inherit a home after the owner dies. A transfer on death deed establishes a line of title between the homeowner and their heir and can be used to counter a title thief’s claims.
“This is helpful because it shows the clear intention of the homeowner in passing it along to specific individuals,” Barry says.
Don’t Do It Alone
Criminals target people who don’t have anyone to turn to for help, so try to find people you trust and can ask for guidance. Check in on older friends and relatives to make sure that they aren’t being pressured to sign documents and that they know where to seek help if needed.
What to Do if You’re a Victim of Home Title Theft
If you think you’re a victim of title theft, contact your owner’s title insurance company if you have a policy. The insurance company can help you with the next steps. Notify your mortgage lender, too.
You’ll likely need to work with an attorney to clear your title. This may involve filing an action to quiet title, which starts the legal process of determining who has the rightful title to the property, and requesting a lis pendens, or a notice that a property’s title is under dispute. A lis pendens can make it more difficult for a title thief to sell or borrow against the property while the title is being resolved.
You should report the fraud to the relevant authorities. Contact your local police and your state attorney general’s office. You can also report fraud to the FBI by calling (202) 324-3000 or at tips.fbi.gov.
Source: money.usnews.com ~ By: Sarah Brodsky ~ Image: Canva Pro
