What is Deed Fraud and how do you address it if you are a victim?

ere’s a comprehensive explanation of deed fraud and what to do if you become a victim, based on the latest guidance from the Arizona Association of REALTORS® and related advisories:

What Is Deed Fraud?

• Deed fraud occurs when someone illegally transfers property ownership by forging the property owner’s signature or otherwise falsifying documents to record a new deed with the county recorder.

• This type of fraud can result in the legitimate owner losing legal rights to their property, facing disputes over ownership, or even being subject to fraudulent sales or loans against their property.

How Do You Address Deed Fraud If You Are a Victim?

Immediate Steps:

• Notify the county recorder’s office immediately if you become aware of a fraudulent deed recorded on your property.

• Contact local law enforcement to file a police report, as deed fraud is a criminal offense.

• Notify your title insurance company; they may have resources or coverage to assist you.

• Consult with a real estate attorney, who can guide you through legal processes to challenge the fraudulent deed and restore your rightful ownership.

Additional Best Practices:

• Regularly monitor your property title for unauthorized changes (some counties offer alert services).

• If you receive suspicious documents or are notified of changes you did not authorize, act quickly—delays can make resolution more difficult.

Legislative Efforts and Industry Practices:

• Arizona has pursued legislation (such as proposed requirements for in-person notarization of deeds) to help prevent deed fraud, although some measures have not been enacted due to concerns about increased liability and the impact on remote online notary services.

• The Arizona REALTORS® organization is actively engaged in shaping policies and working with lawmakers to protect consumers from deed fraud while balancing privacy and technology concerns.

Wire Fraud Advisory (Related Risk):

• In real estate transactions, always confirm wiring instructions verbally using a trusted, verified phone number.

• Never rely on email alone for financial instructions because cybercriminals can intercept or forge messages.

Resources and Support:

• The Arizona Association of REALTORS® and local county offices can guide you to further resources.

• For more information on fraud prevention and legal recourse, you may also visit the Federal Bureau of Investigation (FBI) and the Consumer Financial Protection Bureau (CFPB) websites.

Summary Checklist if You Suspect Deed Fraud:

• Contact the county recorder’s office

• File a police report

• Notify your title insurance company

• Consult a real estate attorney

• Monitor your property records for further unauthorized changes