I received an email from a real estate agent asking for assistance with a matter she believed could be deed fraud. Here is an excerpt:
“I’ve been contacted by email and asked to list a parcel in Pinal County for $500,000. I am concerned because the seller doesn’t seem to know much about the property. Issues I have identified include:
- Canadian passport, and he says FIRPTA does not apply.
- The tax mailing address shows the owners live in Washington, not Canada.
- The passport presented looks doctored.
- Signature on the passport does not match signature on recorded documents.
- When I call him, I get a Google voice message, and he normally calls me back but rarely answers when I call him.
- Tax records show the owner’s name is John Williams. However, the caller refers to himself as Williams, not John. And he signs his name, Williams John.”
This is a common scenario, however, there are many different forms of deed fraud. When dealing with an absentee property owner, an individual needs to watch for red flags.
Typical red flags include:
- The “seller” needs to list the property right away. There’s always some story to explain an urgency to sell.
- The “seller” is out of the country, therefore can’t meet with the real estate agent or title company in person.
- The “seller” can’t meet with a mobile notary the title company will arrange, but instead, offers to have the documents signed and notarized through his/her efforts.
- The “seller” agrees to list below market value so the property will sell quickly.
All real estate is a target, and once a property is targeted, criminals will continue until they find a real estate agent willing to list and sell the property.
What can be done if a property has been targeted or stolen by a stroke of the pen? Contact a real estate attorney to assist with: making a claim on your title insurance policy, if applicable; have the title insurance company put an alert on your property address so that it is difficult to sell if there is active fraud occurring; and record a notice with the County Recorder of the potential fraud.
All counties offer a free alert service that property owners may sign-up for to receive notice if a document is recorded under their name.
Jesi L. Wolnik, PLC, 1166 E. Warner Road, Suite 101, Gilbert, AZ 85296
www.lawjlw.com 602.723.8023
