Can Someone Really Steal the Title to Your Home?

Imagine opening a letter from the Orange County Clerk-Recorder and learning that a deed has been recorded against your home.

There is just one problem: you did not sign it.

You did not sell your home, add anyone to the title or take out a new loan. Yet a document has been filed that appears to give someone else an interest in your property.

This is often called title theft, title fraud or deed fraud.

You may have seen advertisements warning that a criminal can steal your home's title without your knowledge. Those advertisements sometimes make the process sound easier than it really is, usually right before offering to sell you a monitoring service.

Here is the honest answer: a criminal can forge and record a deed, but that does not make the document legally valid.

Under California law, a forged deed is void. It does not legally transfer ownership of your home.

Unfortunately, that does not mean a fraudulent filing is harmless. It can create a serious title problem that may take time, money and legal assistance to correct.

How deed fraud happens

A county recorder's job is to accept documents that meet the legal recording requirements. The recorder generally does not investigate whether every signature is authentic or whether the person filing the document is telling the truth.

A criminal may use stolen personal information to create a false deed and record it with the county. The criminal might then try to sell the property, take out a loan against it, place another lien on it or advertise it for rent.

The forged deed does not give the criminal valid ownership, but it can create a cloud on the title. That problem may not be discovered until the real owner receives an unexpected notice, applies for a loan or tries to sell the property.

Properties without an active mortgage may receive less routine lender monitoring. Vacant land, rentals, second homes and properties belonging to absentee or recently deceased owners can also attract fraud attempts.

That does not mean every homeowner needs to be afraid. It means we should all pay attention to unexpected property documents.

Orange County already provides a free alert

Orange County homeowners have an important protection that does not require a monthly subscription.

The Orange County Clerk-Recorder automatically mails a Real Property Fraud Prevention Courtesy Notice when certain documents affecting a property are recorded.

There is no sign-up required.

The notice includes the first page of the recorded document so the homeowner can determine whether the transaction is familiar. Grant deeds, quitclaim deeds, trustee's deeds and notices of default are among the documents that may generate a notice.

If you recently refinanced, transferred your home into a trust or completed another legitimate transaction, the notice may simply confirm what you already know.

If you receive a notice for something you did not authorize, do not ignore it.

Other warning signs include:

• Your property-tax bill stops arriving
• You receive loan documents for a loan you never requested
• You receive a notice of default even though your payments are current
• Mail related to your home begins arriving in someone else's name
• Someone contacts you about selling or renting a property you never offered

Orange County also has an online Grantor/Grantee Index that homeowners can search for recorded documents under their name. The county recommends checking property records periodically, such as every six months.

It is especially important to keep your property-tax mailing address current if you own a rental, second home or vacant land. A courtesy notice cannot help if it is mailed to an old address.

Beginning no later than January 1, 2027, California law will require counties statewide to establish recorder-notification programs for deeds, quitclaim deeds, mortgages and deeds of trust. Orange County is already providing mailed notices.

What about "home title lock" services?

A paid home title monitoring service is not the same as traditional title insurance, and it does not actually lock your title.

It cannot stop someone from attempting to record a fraudulent document.

Most of these services monitor public records and notify you after something has been recorded. That may be useful for someone who owns several properties in different counties, but homeowners should understand what they are buying.

The Federal Trade Commission warns that products advertised as "title lock insurance" may not be insurance at all. Some are simply monitoring services.

Traditional owner's title insurance is different. It generally covers certain title problems connected to the period before the policy was issued. Whether a specific policy helps with fraud occurring after the purchase depends on the policy language.

Before paying for a monitoring service, ask:

• Does my county already notify me for free?
• Does this company only send alerts?
• Will it provide legal or financial help if fraud occurs?
• What are the exclusions and limits?
• Can the service actually prevent a filing, or does it only report one afterward?

For many Orange County homeowners, opening the county's courtesy notices, checking the public index periodically and monitoring their credit may be a sensible place to begin.

What to do if you see something suspicious

If you discover a deed, mortgage or lien that you did not authorize, act quickly.

1. Contact the Orange County Clerk-Recorder at (714) 834-2500 and obtain information about the recorded document.

2. Save the document, envelope, email and any other related information.

3. File a report with your local police department.

4. Contact the Orange County District Attorney's Real Estate Fraud Unit at REFraud@ocdapa.org.

5. Speak with a qualified California real-estate attorney about protecting your ownership and correcting the property record.

6. Review your credit reports and consider freezing your credit.

7. Report related identity theft at IdentityTheft.gov.

Do not call a telephone number printed on a suspicious solicitation or pay an unfamiliar company that suddenly offers to fix the problem.

Use contact information obtained directly from the county, your lender, your title company or a qualified attorney.

A note from Lori

Title fraud is not a reason to panic, but it is a reason to pay attention.

Open official notices about your property. Make sure the county has your correct mailing address. Check the property record occasionally, particularly if you own a rental, second home or vacant land.

Most importantly, act quickly if you see something you did not authorize.

Your home may represent decades of work and a large part of your financial security. A few minutes of monitoring can help you catch a problem before it becomes a much larger one.

If you receive an unfamiliar property document and do not know where to begin, I am always happy to help you identify the appropriate county, title or legal resource. No pressure and no sales conversation required.

LORI ANDERSON

REAL ESTATE ADVISOR | SENIORS REAL ESTATE SPECIALIST

First Team Real Estate · CA DRE #02080178

(714) 319-1805 · LoriAnderson@firstteam.com

This article provides general educational information and is not legal, financial, insurance or title advice. Consult the appropriate county office, law-enforcement agency, title professional or qualified attorney about your circumstances.