Steadily increasing reports of quit claim deed fraud across the Northeast have prompted the Boston Division of the Federal Bureau of Investigation (FBI) to issue a formal, detailed warning to realtors and homeowners.
Also known as home title theft, quit claim deed fraud is a scheme through which criminals falsify documents to enact a fraudulent transfer of property. Many fraudsters then sell the property they are now able to claim they own, while others take out a mortgage on it or even rent it for a profit.
Since deed fraud is often enabled by the theft or capture of personal information such as Social Security and driver’s license numbers, FBI officials recommend utmost caution in situations that may compromise valuable personal information.
“Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home. They’re suffering deeply personal losses that have inflicted a significant financial and emotional toll, including shock, anger, and even embarrassment,” Jodi Cohen, special agent in charge of the FBI Boston Division, said in a press release. “We are urging the public to heed this warning and to take proactive steps to avoid losing your property. Anyone who is a victim of this type of fraud should report it to us.”
A statement by the FBI identified a variety of scenarios in which quit claim deed fraud has cost homeowners dearly, including:
- Scammers search public records for unoccupied land and homes without mortgages, pretending to be the real owners and asking agents to list the properties. The actual owners later find out their property has been listed; in many cases, after it’s sold.
- Elderly family members are tricked by relatives or acquaintances into transferring property for financial gain.
- Some fraudsters, called “title pirates,” use fake deeds to sell properties. These scams usually remain hidden until the money is sent to the scammer and the sale is recorded.
While the FBI’s Internet Crime Complaint Center (IC3) does not compile statistics specifically regarding quit claim deed fraud, this crime does fall under the umbrella of real estate crime. According to the FBI, from 2019 through 2023, 58,141 victims nationwide reported $1.3 billion in losses relating to real estate fraud.
In the Boston Division, which includes all of Maine, Massachusetts, New Hampshire, and Rhode Island, during the same period, 2,301 victims reported losing more than $61.5 million.
- 262 victims in Maine lost $6,253,008.
- 1,576 victims in Massachusetts lost $46,269,818.
- 239 victims in New Hampshire lost $4,144,467.
- 224 victims in Rhode Island lost $4,852,220.
The FBI added that full losses are most likely much higher than those reported due to that fact that many victims don’t know where to report their incidents, are embarrassed, or haven’t yet realized they have been scammed.
In an effort to prevent recorded deed fraud losses from increasing further, the FBI advises the following precautions:
Tips for Landowners
- Continually monitor online property records and set up title alerts with the county clerk’s office (if possible).
- Set up online search alerts for your property.
- Drive by the property or have a management company periodically check it.
- Ask your neighbors to notify you if they see anything suspicious.
- Beware of anyone using encrypted applications to conduct real estate transactions.
- Take action if you stop receiving your water or property tax bills, or if utility bills on vacant properties suddenly increase.
Tips for Realtors
- Avoid remote closings, if possible.
- Ask for in-person identity checks.
- Request copies of documents that only the property owner would have. This includes a copy of the most recent tax bill, utility bill, or survey from when the property was purchased, in addition to the individual’s ID.
- Send a certified letter to the address of record on the tax bill.
- Look up the phone number by reverse search or through the phone carrier.
- Call to verify the public notary and confirm he/she attested to the documents.