Property fraud is a crime also referred to as deed fraud or document fraud. There have been national reports of fraud where forged, false, or fraudulently induced deeds are recorded against properties without the knowledge or consent of the owner. Property fraud tends to occur on properties that are unoccupied, do not have mortgages, or have high equity value.
• False pretenses – where the property is acquired because of intentional misrepresentation.
• Forgery – where the fraudster impersonates the property owner and signs the deed.
• Fraudulent Heir Conveyances – One heir of the property sells it without adding the other heirs to the sale. They pocket all profits when other the heir(s) are entitled to a portion. (Intentionally leaving off other heirs for the property)
• Fraudulent Inducement – the right person signs the document to sell, but the property was given to an entity they didn’t know of. Or they didn’t know what they were signing. (Elder abuse, etc.)
• Fraud with Sovereign Citizens – Sovereign citizens fraudulently recording liens of properties.
• Entity High jacking – someone changes the members of the entity (LLC, etc.) to convey the property.
• Notary fraud – where the fraud is perpetrated by an individual misrepresenting their authority, where credentials have been stolen, or the notary has intentionally falsified a notarial act.
• Seller Impersonation Fraud – (most common) Someone impersonates a seller and conveys the property from under the real owners. It’s usually complex criminal organizations that try to get as much info of the owner by phishing. This is seen a lot with overseas embassy documents.
County recorders are charged with the responsibility to record any document authorized or required by law. When a document meets basic statutory (state or local) recording requirements and the appropriate fees are paid, the recorder is required to record. Recorders generally do not have the authority to audit the content of a document or determine its enforceability, efficacy, or accuracy. For this reason, many Nevada County Recorders have implemented a free Property Recording Alert System for their constituents.
Property Recording Alert Systems exist to inform landowners when there are documents recorded against their property. These systems do not prevent fraudulent activities but do provide for early detection of fraud and timely automated notice of all recording activity.
Sign up for free property recording alerts on your County Recorder webpage.
*County does not have an active recording alert system at this time.