Preventing Title Fraud

Update On Preventing Title Fraud

By Libby Banks, the Law Office of Libby Banks, PLLC

As I’ve written in these pages before, there is real concern these days about title fraud. This can take the form of someone forging a deed to take title to your property and refinancing to steal your equity, or accessing the equity with a home equity line of credit. If you are buying or selling a home, a criminal might provide fake wiring instructions so the payment for the home goes to a fraudster, and the thieves are off with your money.

A few years ago, the Maricopa County Recorder set up a program to alert you if a document is being recorded that affects your title. You can sign up for notices at https://recorder.maricopa.gov/MaricopaTitleAlert/. Other counties have followed suit.

Additional help arrived in September in changes to the laws governing notaries. Now, when a notary is executing a document that could affect real estate, they must get a thumb print from the person whose signature they are notarizing. While this may not prevent fraud, it can help catch the criminals who commit fraud.

Even more helpful is the Early Real Estate Sales Alert System. Found at earlyalert.azre.gov, this system gives homeowners an early warning of a pending real estate sale and the opportunity to stop the fraud. Register your home address for alerts on your property.

Holding your home in a trust can also help prevent fraud. The easier for a fraudster to steal your property, the more likely they are to try. Having your home titled in your trust adds complications for a thief. It takes a higher level of sophistication to commit fraud regarding a home in trust than when the home is in an individual’s name.

When the title is in an individual’s name, the criminal only needs to sign the name to forge a deed or loan document. If the home is in a trust, they must provide proof that the trustee has the authority to take out the loan or transfer the property. Sometimes the title company or lender will ask for the entire trust document. Faced with these additional requirements, a fraudster is likely to move on to an easier target.

A trust is a great way to manage your property while you are living, assure that you have the right people named if you become incapacitated, avoid probate and provide specific directions for your estate on your passing. If you’ve been thinking about creating a trust, the possibility that it may help prevent fraud is one more reason to move forward.

If you’re looking for help with your estate planning, the Law Office of Libby Banks, PLLC can help. We are a boutique law firm that specializes in trusts, wills and estate planning, probate and trust administration. Our attorneys offer a free initial consultation to talk about developing an estate plan for you. Call us at 602-375-6752 or visit our website at www.libbybanks.com.