PROPERTY CONVEYANCE FRAUD ON THE RISE : How To Know If It Happens & How To Stop It
Real Estate Attorneys Are Receiving Alerts - Title insurance agencies and real estate attorneys across the state are sounding the alarm and sharing their “war stories” of finding fraudulent conveyances of real property - both residential and commercial. People are creating, filing, and recording fraudulent deeds to transfer property into their business or individual names. They then convey the property through a sale to an unsuspecting buyer. All the while, the real owners have no idea their property has been sold to someone else.
BUT HOW CAN THEY DO THIS?
Real estate records are public records, as are tax records. It doesn’t take much to locate a property and determine the names on record for a given property. Real Estate thieves do this basic research, then draft deeds of the property to themselves (or someone else or another entity) as Grantees using the record property holders as the Grantors. They then send the Deed(s) for filing and recording with the local Superior Court Clerk’s Office and the property title is transferred.
From there, they locate another buyer, who often doesn’t request a title search of the property or do any due diligence, and they purchase the property. Granted, even with a title search, it would appear “all is well” if the names of the Grantors match the names previously in the title chain.
WHERE IS THIS TAKING PLACE?
This is taking place across the state - in urban and rural areas alike. However, it seems to be primarily fixated in neighborhoods undergoing gentrification, homes/ land that appears abandoned, and/or with owners who are elderly or ill and properties that haven’t seen much, if any, change in ownership in some time. These thieves count on the property owners to not know where or how to check on their property ownership. But why would the owner’s check on their property? They bought it years ago. They’ve paid off their mortgage. There’s no need to see what’s going on because they haven’t signed a deed to move the property. This is exactly the mindset these thieves count on to move your property from their hands, to their greedy hands, to the hands of an unsuspecting buyer.
HOW CAN I PROTECT MYSELF?
1. Register with the Georgia Superior Court Clerks Cooperative Authority FANS System
FANS is the Filing Activity Notification System through the GSCCCA. From their website: “designed to offer individuals the ability to receive a notification when certain real estate and personal property records are filed with, indexed, and data is transmitted by Clerks of Superior Court throughout the state of Georgia.”
It is a VOLUNTARY system and you must be proactive about enrolling. For more information, please visit their website HERE
2. Get a title search/ abstract performed.
Whether you’re obtaining a title insurance policy or buying new property, we cannot stress enough the importance of getting a title examination performed on your property. Even if you trust the seller, you never know what is lurking in the real estate records that you could be subject to if you buy without looking. It’s a part of your due diligence as the buyer and the peace of mind far outweighs any nominal cost of the search.
3. Obtain an Homeowner’s TITLE Insurance Policy.
This is different from your regular homeowner’s insurance policy. To put it simply, your homeowner’s insurance policy, much like a renter’s insurance policy, protects your stuff and a Homeowner’s title policy protects your home and land. It is a one time policy premium. You don’t pay it ever again, unlike your homeowner’s insurance policy, which you pay either monthly or annually. The Homeowner’s title policy will protect and insure against things like forgery and fraudulent conveyance, where as a standard Owner’s Title Policy likely will not.
If you are interested in acquiring a Owner’s Title Insurance Policy, please give us a call! We’d be happy to help you!
4. If the property is sitting in the name of a deceased loved one:
Call our office and speak with an Attorney about having the property titled into the proper living parties. This includes if you have a joint tenancy with rights of survivorship and your joint tenant is now deceased. You can read more about that specifically in our Joint Tenancy Blog from May 2023.
5. Consider filing a Protective Title Affidavit.
If you would like more information on this or would like to take this step, contact our office!
6. ALWAYS, ALWAYS, ALWAYS know what you’re signing.
This is especially true for financial and real estate documents. If you don’t know or don’t understand - ASK!
7. NEVER sign Deeds, or any documents that could affect your rights to real estate,
Like a Power of Attorney or Mortgage or Mortgage Modification, including Reverse Mortgages, HELOCS, etc. documents, outside the office or prior review and advice of an Attorney.
8. Consider speaking with your Lender about a Home Equity Line of Credit or a HELOC if your mortgage is paid off.
These thieves look for non-encumbered properties, or properties without active mortgages on them!
9. If you find that your property has been fraudulently conveyed, REPORT THE CRIME IMMEDIATELY to local law enforcement,
Then once the report is made, contact an experienced real estate attorney to make sure the proper paperwork is prepared and filed as soon as possible to protect your interests.
We’re here to help you understand how you own your property, the benefits and consequences of that ownership, other options you may have in sharing ownership in property, as well as transferring or clearing title to your property, and protecting your interests in that property once you own it. Call Your Hometown Attorney today at 706-359-3332 and let us educate and assist you with your real property!