Why You Should Check Your Property Deed Periodically

Few homeowners ever check their property records after they buy their homes.  They should.

The Home Equity Theft Prevention Act became effective on February 1, 2007. It amended 595 of the Banking Law, and added new sections to both the Real Property Actions and Proceedings Law (RPAPL). Laws intended to curb property deed theft.

However, the problems have not abated. A 2008 article in TitleSearch.com explained the growing problem of how property deed scams operate. 

It is not difficult to file a deed on a property, even for someone with no legal claim to it. A person need merely fill out a blank deed purporting to show that the property’s owner is transferring the property to someone else. Once the document is notarized and a fee is paid to the recorder of deeds, the document is part of the official record of ownership.

Part of the problem is that the government system is not in a position to verify the signature on every deed. If an executed deed is presented to the clerk, and it appears to be in the right format, and have the correct information, it is recorded as being legal. In some cases, a vigilant clerk might notice some irregularity about a person or document, but this is well beyond their responsibility in most cases. The individual clerk cannot be expected to know every signature for every homeowner. Also, in most states there is no requirement for any notice to be sent to a property owner upon a transfer of deed, or placement of a lien or mortgage on their property.*1.

Recently, an investigative class project at Medill Northwestern University led to a New York Times story about property deed theft. Graduate student Anjelica Tan uncovered a major real estate scam during her Investigative Business Reporting class. Tan and Adjunct Lecturer Susan Chandler revealed the scam in the New York Times.  Since 1921, Medill, 1845 Sheridan Road Evanston, IL, has been recognized worldwide as a jewel at one of the nation’s elite universities.

Just as you check your safe deposit box in your bank's valut, make it a point to periodically check your property deed.

*1. http://titlesearchblog.com/house-theft-the-latest-real-estate-scam/