3 Practical Tips You Can Take to Reduce the Risk of Home Title Theft
By Leonid Roudik, Fort Bliss Legal Assistance Office
Home title theft, also known as deed theft, occurs when someone forges a property owner’s name on a deed and illegally transfers ownership to themselves or another person. The threat of home title theft is heightened for military families. Military families are uniquely vulnerable due to frequent relocations, deployments, and periods as absentee landlords. Victims of real estate scams and crimes like home title theft lost over $145 million in 2023, according to the FBI’s Internet Crime Report.
Criminals search public records to identify properties that present the lowest risk of detection. Some properties that stand out to these thieves include vacant properties, second homes, rental properties, and those owned by out-of-state residents, as well as properties with no mortgage or other liens.
Below are three practical tips to help military families reduce the risk of home title theft:
Protect Your Personally Identifiable Information
The first step in protecting your property from title theft is to safeguard your personally identifiable information. One’s PII is the raw material needed to commit the crime. If your PII is protected, a criminal is more likely to move on to an easier target.
Ensure that you securely shred and do not simply discard documents containing sensitive information, such as old bank statements, pre-approved credit offers, expired IDs, and even moving paperwork with PII.
Phishing emails and vishing (voice phishing) phone calls have grown in frequency. Never provide personal information in response to an unsolicited email, text, or phone call. Verify the legitimacy of the inquiry by contacting the organization through an official phone number or website.
A service member can place an “active-duty alert” on their credit file by contacting one of the three major credit bureaus (Experian, Equifax, or TransUnion). For one year, this alert requires creditors to take additional steps to verify the applicant’s identity before issuing new credit.
1. Establish Monitoring Systems
The most effective tool available to homeowners is to monitor their property status are free county property ownership alerts. A growing number of county clerks offer free notification services that alert you whenever a new document is recorded in your name. To enroll, search online for “[Your County Name] County Clerk Property Fraud Alert.”
In addition to automated alerts, it is advisable to conduct periodic manual checks of online property records, especially for absentee owners. You can do that by searching online for “[Your County Name] Property Records.”
Another method is to set up a free Google Alert for your property’s full address. This Google Alert will notify you via email if your address appears in new online content, such as a real estate listing.
2. Signing up for Title Insurance
When purchasing a home, lenders often require title insurance to protect their interests. However, many buyers skip the optional owner’s policy. The owner’s title insurance policy is typically paid for with a one-time premium at closing. It covers losses from title defects that existed in the past but were not discovered during the initial title search, including things like forgery, fraud, or undisclosed heirs. This coverage remains in effect as long as the owner or their heirs retain an interest in the property. If you waived the owner’s policy, check if you can still add it retroactively.
Notably, beware of “title lock” services. “Title lock insurance” is not a form of title insurance. It’s a service that claims to monitor your deed to protect you against title fraud. It only notifies you after your title gets transferred to someone else without your authorization. These companies frequently charge excessive fees for a service that is frequently available for free.
3. How can the Legal Assistance Office help?
Criminals frequently target properties whose owners' have passed away and especially when the heirs have not yet completed the title transfer process. A clear legal will establishes a clean chain of title and helps prevent this crime from targeting you. The Legal Assistance Office can help draft a will that will accurately outline how your assets will be distributed after your death. LAO personnel also can assist in drafting a Power of Attorney to protect you. A POA is an important tool that allows a spouse or agent to manage financial and legal matters. However, a POA can become a tool for fraud if it falls into the wrong hands or is misused. It is critical that your POA is professionally drafted to minimize the risk of fraud.
To speak with an attorney in the Fort Bliss Legal Assistance Office on this or any other topic, please schedule an appointment by emailing usarmy.bliss.hqda-otjag.mesg.bliss-legal-assistance-office@army.mil, or calling (915) 568-7141 during LAO business hours.