Title fraud, sometimes called deed fraud or home-title theft, occurs when someone impersonates a homeowner and files a false deed to transfer ownership of the property. Criminals may forge signatures or use fabricated identification to record documents with the county recorder’s office. Once recorded, they may attempt to sell the property, rent it out, or secure loans against it.
Although fraudulent deeds are legally void and cannot actually divest a rightful owner of their property, the real-world consequences can be significant. Homeowners often face the burden of clearing public records, untangling lender claims, and pursuing legal remedies. In the meantime, they may be contacted by banks, receive foreclosure notices, or experience stress and uncertainty about the security of their home.
Who Is Most at Risk?
Title fraud often targets properties that are not closely watched, such as second homes, rentals, or residences owned outright with no mortgage. Elderly homeowners and those who live far from their property are also more vulnerable because fraudulent activity may go unnoticed for longer periods.
Title-Lock Services: What They Are and What They Are Not
Subscription-based “title lock” services monitor property records and send alerts if a new deed, lien, or other filing occurs. Despite the name, these services do not “lock” your title or prevent a fraudulent deed from being recorded; they simply notify you after the fact. Whether the service adds value depends on the availability of free county monitoring programs, which many California counties already provide.
The Role of Title Insurance
Title insurance offers a different layer of protection. A standard owner’s policy, purchased at closing, insures against pre-existing issues such as undisclosed liens or improperly recorded documents. In California, most standard owner’s title insurance policies protect against title defects that existed before purchase, such as pre-existing liens, clerical errors, or pre-policy forgery. However, only enhanced Homeowner’s Policies typically include coverage for fraud or forgery that occurs after the policy is issued, allowing the insurer to defend and restore your title in such cases.
What To Do If You Suspect Fraud
If you suspect that you may be the victim of title fraud, it is important to act quickly. Notify your county recorder’s office to report the issue and confirm the filing. File a police report with local law enforcement and consider submitting a complaint to the FBI’s Internet Crime Complaint Center. If you have title insurance, contact your insurer immediately to begin the claims process. Consulting a real estate attorney can also help you pursue corrective legal actions. In addition, placing a fraud alert or credit freeze with the major credit bureaus can reduce the risk of related identity-theft activity. Warning signs to watch for include missing property-tax bills, unexpected notices from lenders, or mail addressed to someone else in connection with your property.
Practical Steps to Reduce Risk
Homeowners can take preventive measures to reduce exposure. Many counties in California offer free recording notification services that send alerts when documents are filed against a property. Monitoring your mail and credit reports can help detect unusual activity, and freezing your credit adds another layer of protection.
Final Thoughts
While no single measure can fully prevent title fraud, a layered approach is often most effective. Title-lock services may offer awareness, but they do not stop fraud. Title insurance provides real financial and legal protection, especially where coverage includes post-purchase fraud. Free county alerts and personal vigilance remain practical, low-cost safeguards.
Resources
Ventura County Title Monitoring – https://clerkrecorder.venturacounty.gov/county-recorder/county-recorder/real-estate-fraud-unit/
Los Angeles County Title Monitoring – https://res.cloudinary.com/los-angeles-county-assessor/image/upload/v1691676902/Msc/ASSR_eNotification_Guide.pdf
Santa Barbara County does not offer this service, so let your County Clerk-Recorder know that you would like it!
Orange County Title Monitoring – https://ocrecorder.com/recorder-services/real-estate-fraud-alert