Norfolk County Registry of Deeds' Notification Program is Consumers' Tool against "Deed Theft"

As home transactions pick up speed as spring continues and in light of recent publicity from the Federal Bureau of Investigation (F.B.I.) Boston Division relating to quit claim deed fraud, or “deed theft,” Norfolk County Register of Deeds, William P. O’Donnell issued a reminder last week from Dedham to residents about the Registry's Consumer Notification Program.

The F.B.I. Boston division has reported that 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 Massachusetts, Maine, New Hampshire, and Rhode Island, 2,301 victims reported losing more than $61.5 million during the same period. The largest losses came from 1,576 victims in Massachusetts, whose losses totaled over $46 million of the region's $61.5 million losses, according to the F.B.I.

Deed theft can take different forms. The most common type of fraud preys on people who are in danger of losing their property through foreclosure. The owners are told that they qualify for a "short sale," a process where the foreclosing lender settles for less than the amount owed on the mortgage, and that if they sign the deed over to a third party, they can avoid the foreclosure. The owner signs a deed over to the third-party scammer, not realizing they are still responsible for the debt, and the scammer, rather than negotiating the short sale, collects and keeps the rental payments until the lender eventually forecloses.

Another type of deed theft targets elderly people who sign over their property without realizing what they are doing. This is often done by a family member. Deed theft is a serious crime that can result in the loss of one's home and equity. Homeowners should be aware of these scams and talk to a lawyer before signing any papers that have to do with their property.

A growing concern is forgery, where a scammer fakes a homeowner’s signature on a deed and records it in the registry of deeds. A forged deed is not valid and conveys nothing. If a buyer or a lender rely on a forged deed and don’t do their due diligence on a property’s title, they are out of luck. They, not the legitimate property owner, will ultimately lose any money paid to the thief. Forgery is a felony in all fifty states, punishable by jail time and heavy fines. The court may also require restitution for damages caused by the forgery, such as the costs of clearing the title.

F.B.I. Boston is working with property owners, realtors, county registers, title companies, and insurance companies to thwart the fraud schemes. Read the full article from the FBI Boston Division regarding quit claim deed fraud here.

Commenting on the issue, Register O’Donnell stated, "Our mission at the Registry of Deeds is the safety and security of all property records. We recognize that there are unscrupulous individuals who may try to take advantage of the property rights of others. In 2015, we at the Norfolk County Registry of Deeds initiated a Consumer Notification Service, a free service whereby subscribers sign up to be notified when any document is recorded under their name. This initiative came about in response to the Federal Bureau of Investigation (F.B.I.) indicating property and mortgage fraud was one of the fastest growing white-collar crimes in America."

Companies now offer paid subscription services that will check public records and let a property owner know if a deed has been recorded that changes who owns their property. It is not title insurance. At the Norfolk County Registry of Deeds one can sign up for notification if a document is recorded in one’s name at the Registry.

Information on "Consumer Notification" can be found on the Registry website, www.norfolkdeeds.org under the heading, "Services". The Registry Customer Service Department can assist anyone who would like to set up the notification for their property.

Register O’Donnell concluded, "I want to reiterate that our free notification service, like the paid services, does not protect against fraud but will at least alert the owner if a fraudulent deed has been recorded. This way the homeowner can take steps right away to combat the fraud. Also, Owners should always be aware of what they are signing when it comes to any document that may affect the title to their real estate and should scrutinize any company that promises to alleviate debt if you sign over a deed to them. In Massachusetts, a deed should always be signed in front of a notary public. Massachusetts notaries are obligated to request identification from the party signing the deed."

According to the F.B.I., landowners and realtors can take the following steps to protect against deed theft:

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.

Register O'Donnell urges residents with any questions about the Registry's free notification service to contact the Registry's Customer Service Center at 781-461-6101, Monday through Friday, between the hours of 8:30 a.m. and 4:30 p.m. The Registry can also be contacted by emailing registerodonnell@norfolkdeeds.org.

Thanks to the Norfolk County Registry of Deeds for sharing this news with Westwood Minute.

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