Fraudulent deed transfers have been on the rise in the Miami Valley. If you currently own real estate, you should take steps to protect yourself from becoming involuntarily entangled in what can be a costly mess.
When you purchased your property, the owner presented you with a deed. The deed is the document that describes the property and sets forth your interest in the property as the owner. Deeds are recorded at the county recorder’s office as public records.
Deed fraud occurs when an unauthorized party forges the true owner’s name on a deed and purports to transfer ownership of the property to another party. Often, the unauthorized party lists a newly formed company or fictitious entity as the new owner. This fraudulent deed is recorded, informing the public of the “new owner.” Subsequently, this new owner will transfer the property by deed to an innocent third party. This subsequent transfer can often involve realtors and appear as a standard real estate closing with the innocent third party paying for the property.
While many of these fraudulent transfers involve vacant properties, there are cases where an owner returned from a winter trip in Florida to find someone else living in their home.
In general, one cannot obtain a good title through fraud, and the true owner of the property gets the property back, which can be a lengthy and costly process. In some cases, the actual owner can lose title to the property.
A recent Montgomery County Common Pleas Court ruling offers a real-life example of this. The actual parcel owner owned a property since 1990 but, over the years, let the property become vacant and neglected to pay property taxes on it. In 2018, an individual forged the valid owner’s signature on a deed, and a few years later, an innocent purchaser bought the property.
The Court ruled that the innocent purchaser bought the property in good faith at an arm’s length transaction, ultimately ruling that he was entitled to the property based on the facts of the case. Although the Court acknowledged that the actual owner was also an innocent victim of deed fraud, the Court found she allowed the property to deteriorate and did not take the necessary steps to learn why tax bills had not been sent to her.
Most counties now have a fraud alert system to alert property owners if anything regarding their property is filed with the County. Below is a list of local websites where you can sign up for deed fraud alerts.
Montgomery County: https://go.mcohio.org/applications/recorder/fraud/
Warren County: https://www.propertyfraudalert.com/OHWARREN
Greene County: https://greenecountymo.gov/recorder/pfn.php
Miami County: https://www.miamicountyohio.gov/980/Property-Fraud-Alert
If you are the victim of deed fraud or want to learn ways to protect your real estate ownership interests, the real estate attorneys at PSE Law are always here to help. They can be reached at (937) 223-1130 or pse@pselaw.com.
