Deed fraud, also known as property title theft, happens when someone steals ownership of your home without your knowledge. It can be financially and emotionally devastating, especially for older adults and their families.
This scheme first became common in New York City a few years ago. Today it shows up regularly across Nassau and Suffolk Counties and in communities throughout the US.
In a recent Care Answered episode, Answers4Care’s Peter Janowsky of Ryan and Janowsky joined us to share tips on protecting yourself and your loved ones from fraud. We did not get a chance to cover deed fraud in that conversation, so here is what you need to know.
How Does Deed Fraud Work?
According to AARP, there are two common types of deed fraud.
- Forged deed transfers. Thieves forge a deed that transfers ownership of a property to themselves. They file it with the county clerk, who records the sale. The property is then quickly resold to an unsuspecting buyer.
- Deceptive deed signing. Scammers deceive a homeowner into signing a deed that transfers ownership, often with a false promise like help refinancing a mortgage or paying off overdue property taxes.
Who Deed Fraud Targets
These criminals tend to target vacant homes, properties with no mortgage, and older homeowners. For many families, a home is their most valuable asset. Sometimes it is their only asset and a way to pass down generational wealth.
How Long Islanders Can Protect Themselves and Their Loved Ones
Register for a property fraud alert in Nassau or Suffolk County. Once you sign up, the county will email you any time a document is recorded using your name or property information. That gives you a chance to act fast if something looks wrong.
Nassau County: www.nassaucountyny.gov/clerk/pfa
Suffolk County: Homeowners Watch List (HOWL)
Take steps now to protect yourself. Visit Answers4Care for other trusted professionals who can help with financial and legal matters. Care costs money. Let us save you money, time, and stress.
Quick Answers
What is deed fraud?
Deed fraud is when someone steals ownership of your home, either by forging your signature on a deed or by tricking you into signing one.
Who does deed fraud target?
Criminals typically target vacant homes, homes with no mortgage, and older homeowners.
How can I protect my home from deed fraud?
Register for a property fraud alert through your county clerk. In Nassau and Suffolk Counties, this free service emails you whenever a document is recorded using your name or property information.
Property Deeds: 4 Things to Know
AARP also shared this guidance on protecting your property deed.
- What it is. A property deed is a document that transfers ownership from one person to another. Typically, your home deed is held by a local government land records office.
- Whose name is on it? If you own your home outright, the deed is in your name (and perhaps your spouse’s). If you have a mortgage, it varies by state. In some states, your name stays on the deed while the bank holds a lien on the property. In others, the bank holds the deed until the loan is paid off.
- How to protect it. It takes your signature to finalize a property transfer. Never sign a real estate document under pressure. Take documents to a reputable lawyer so you understand exactly what you are signing.
- What else to watch for. Never ignore mail sent to another name at your address, especially tax and other home-related documents. That could mean someone has illegally transferred your deed into their name.
Source: Jay Inwald, Legal Services NYC