An unsettling trend has recently emerged in the real estate and property law world. More and more landowners have discovered they are victims of fraud. Specifically, there have been fraudulent deeds filed regarding their land. This article will briefly detail what a fraudulent deed is and how they affect landowners, how to mitigate your liability against fraudulent deeds, and what to do if you are a victim of fraud by deed.

Fraudulent Deeds

A deed is fraudulent if it tries to do something one of the parties involved does not have the authority to do. For example, Jane files a deed which conveys to John a 100-acre farm. However, Jane does not own or have any rights to the farm. Therefore, the deed is fraudulent. Another way is when someone forges signatures or other important information on deeds and then files them in the real property records for their county.

But what happen when someone actually has the rights to that farm Jane just tried to convey without legal authority? What happens to that person and their rights? What if the farm is located in Texas, but the true owner lives in California and doesn’t see the land that often? John could come onto the land and begin making changes without either party knowing the better.

Mitigating your Liability

John, and buyers like him, should always have a title company do a title exam on the property before purchasing it. Title exams consist of an examiner – sometimes an attorney, sometimes not – combing through the property’s title to make sure there are no “surprise” interests in the land that would incumber the desired transfer. Title insurance can be purchased as well. Title insurance policies provide protection against third-party claims that do not appear in the title exam after the real estate deal has closed. Title exams and insurance are a great way to make sure you are a) buying what you think you are buying; b) discovering issues you wish to avoid/solve; and c) insulating yourself from future risks and costs.

A quick piece of practical advice: do not simply rely on what the County Appraisal District website tells you. It can be a great starting point and resource for basic information; however, the website is not always the full and complete picture of the title to your property. Do not be completely satisfied until you have a title examination conducted on the property. Better safe than sorry is truly the motto when it comes to title.

If You’re a Victim

If you and your property are the victim of a fraudulent deed, there are both criminal and civil remedies you can seek.

To seek criminal penalties, contact the local Sheriff’s Office or police department in the county the land in question is located. They will do an investigation, then recommend charges to the County District Attorney.

Civil remedies can be obtained by reaching out to a law firm who has experience in landowner and property issues and filing a lawsuit. Braun & Gresham is such a firm! They can help you obtain remedies for causes of action such as fraud and a suit to quiet title.

Conclusion

Fraudulent deed filings are happening more and more frequently as of late. Luckily, there are actions you can take to mitigate your risk from such an event affecting you. If you are a victim of a fraudulent deed, make sure to speak with both law enforcement and a civil attorney to cover both criminal and civil remedies.

Blog by N. Cahil Murchison, Attorney & Counselor