Understanding Forgery in Real Estate: What It Is and How to Protect Yourself

Forgery in real estate is a serious crime involving falsifying documents to deceive and defraud. This illegal act can lead to significant financial losses, legal complications, and property disputes for victims. Understanding what forgery in real estate entails and how to protect yourself is crucial for anyone buying, selling, or owning property.

What Is Forgery in Real Estate?

Forgery in real estate occurs when someone intentionally creates, alters, or uses documents to misrepresent the truth about property ownership or transactions. Common examples include:

Fake Deeds: Creating a false property deed to transfer ownership illegitimately.
Forged Signatures: Signing someone else’s name on legal documents without permission.
Altered Documents: To benefit the forger, change contract details, title, or other legal papers.

Common Types of Real Estate Forgery

1. Title Fraud:

Title fraud involves stealing the identity of the rightful property owner and using forged documents to transfer the property into the fraudster’s name. The criminal can then sell the property or take out loans against it, leaving the actual owner with significant legal and financial issues.

2. Mortgage Fraud:

Mortgage fraud occurs when false information is provided on loan applications, or forged documents are used to secure a mortgage. This can involve identity theft, misrepresenting income or employment, and using fake appraisals.

3. Deed Fraud:

Deed fraud involves creating fake deeds to claim ownership of a property. The fraudster might use the false deed to sell the property or use it as collateral for loans. This type of fraud can go unnoticed until the owner tries to sell the property or obtain a loan.

How to Protect Yourself from Real Estate Forgery

1. Title Insurance:

Purchasing title insurance is one of the best ways to protect yourself from title fraud. Title insurance protects homeowners and lenders from financial losses due to defects in the title, including forgery and fraud. It ensures you are financially covered if someone challenges your ownership based on a forged document.

2. Regularly Monitor Property Records:

Regularly check public records to ensure no unauthorized changes have been made to your property title. Many local governments provide online access to property records, making it easy to verify your ownership status periodically.

3. Secure Personal Information:

Protect your personal information to prevent identity theft. Shred sensitive documents, use strong passwords, and be cautious about sharing personal information online or over the phone.

4. Verify All Documents:

When involved in a real estate transaction, carefully review all documents. Verify the authenticity of signatures and details on deeds, titles, and loan agreements. If anything seems suspicious, consult with a real estate attorney.

5. Work with Reputable Professionals:

Engage reputable real estate agents, attorneys, and lenders. Conduct thorough background checks and verify their credentials. Professionals with a solid reputation are less likely to be involved in fraudulent activities.

What to Do If You Suspect Forgery

If you suspect that you are a victim of real estate forgery, take immediate action:

Contact Authorities: Report the suspected forgery to local law enforcement and the FBI, which handles real estate fraud cases.
Consult an Attorney: Hire a real estate attorney to help you navigate the legal process and protect your rights.
Notify Your Lender: Inform your mortgage lender if the fraud involves a loan to prevent further financial loss.

Final Thoughts

Forgery in real estate can have devastating consequences, but by understanding the risks and taking proactive steps, you can protect yourself from becoming a victim. Regularly monitoring your property records, securing personal information, and working with reputable professionals are vital to safeguard your property and financial well-being. If you suspect forgery, act quickly to mitigate the damage and seek legal assistance to resolve the issue.

Provider and Settlement Service	Charge or Range of Charges
Sonic Realty LLC	1%-6% of purchase price
Sonic Title Agency, LLC	Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.) Title Search Fee: $250 - $325 (where applicable) Closing Fee: $450 - $650
Sonic Loans Inc. This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.	Loan Origination Charge: 0-3 % of loan amount (may include 3^rd party fees) Loan Discount Fee/points: 0.5%-6% of loan amount. Application/Processing Fee: $0.00 - $875.00 Flood and tax service: $0.00 - $95.00 Underwriting Fee: $0.00 - $1295.00 Document Review Fee: $0.00 - $400.00 Appraisal Fee: $0.00 - $850.00 Credit Report Fee: $0.00 - $135.00 Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.

Provider and Settlement Service	Charge or Range of Charges
Appraisal Fee	$0-$800
Credit Report Fee	$63-$125