Often, clients, especially Buyers, inquire about the need for 3rd party monitoring services to prevent fraudulent transfers of their property. Do I need this? Is it worth it? Does this really happen?
Services like Title Lock, frequently offered by credit monitoring services such as Life Lock, suggest they can prevent or identify title fraud. What do they mean? They suggest that there are loads of fraudsters, impersonating you, signing and recording quit claim deeds to move your property to someone else’s name thereby “stealing” the property.
The premise these companies are selling is true. A person can create a deed, forge an Owner’s name, and record that document with the county register of deeds. That is where the truth stops and the suggestive, and possibly misleading, claims begin. No company can “lock” or create a “virtual perimeter around your home’s online title and mortgage information” as Home Title Lock’s website claims. They can only alert you once the fraud has occurred. Most counties have online access to recorded documents available to the public at no charge. If you are concerned about a fraudulent, or even accidental recording getting placed on your property, there is an simple and free way to check.
Home title theft is not as easy, or as prevalent, as these companies like to imply. In Florida, you are required to have 2 witnesses plus a Notary Public in order for a deed to be valid. The Notary Public must either personally know the individual or verify their identity via photo identification. A forger getting a loan on the property is even less likely due to the safeguards and multiple requirements imposed by lenders.
Finally, even if a criminal was able to get through all these hurdles, this does not mean that the forged documents are valid. A fraudulent deed is void. You do not owe a mortgage that you did not sign. Just because these documents are put on record does not make them valid or legal.
