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January 2025
F E A T U R E S T O R Y
January 2025 ยป
deeds to illegally transfer properties to
fictitious entities that were then sold
off, leaving the true owners entangled
in complex legal battles to reclaim
ownership.
While digital tools have made deed
fraud easier to perpetrate, so have
procedural vulnerabilities within most
real estate transactions. Too often, the
processes lenders and title companies
use for verifying and recording deeds
don't include stringent identity checks,
which can enable forged documents to
pass through undetected. Once a fake
deed is entered into the public record,
it gains a veneer of legitimacy that
becomes more difficult to challenge.
For example, in the case involving
Graceland, the scheme was unveiled
only after a vigilant legal challenge by
the estate's trustees.
How to Stop It
T
he increasing frequency and sophisti-
cation of title fraud indicates that the
integrity of the nation's property records
remains under constant threat. That's why
it's so important for lenders, title providers,
and consumers to stay informed about the
risks and undertake preventive measures
to keep properties from being virtually
stolen under their noses.
While it may seem obvious, every
lender and title provider should be
enhancing due diligence throughout
their operations, particularly in processes
involving title. For every transaction, there
should be rigorous checks that include
verifying the true identities of all parties,
a thorough examination of the property's
history, and cross-referencing all provided
documents with public and private data-
bases. Training staff to recognize the signs
of fraud and the types of techniques used
by fraudsters is equally vital.
For consumers, understanding the
role that title insurance plays in safe-
guarding their homes is also critical.
While most homeowners are aware that
title insurance protects them from finan-
