When it comes to big business, there’s always someone out there trying to take advantage of honest people. This is true in every line of business, but especially when it comes to real estate. Unfortunately, even when you’re careful, dodgy characters are sometimes lurking about with sketchy motives who will do anything to turn a quick profit—even theft.
At Liberty Title, we’re here to help you avoid getting caught up in a sticky situation because someone else has loose morals. Our Twin Cities title insurance services are one of the best ways to keep your money safe from tricksters and thieves. That’s why we’ve put together this guide to some of the most common types of real estate fraud you need to be on the lookout for.
1. Deed Transfer Identity Fraud
One way home ownership is at the center of fraudulent schemes is through fraudulent deed transfers. This type of fraud is fairly sophisticated but begins with identity theft. After forging a discharge of mortgage, they’ll use the newly clear title to get loans in the stolen name. The owner may be unaware of the problem until they are alerted to problems with their credit down the road.
2. Dead Man’s Scam
With this increasingly popular scam, a fraudster starts by checking out the obituary section in the paper. They tend to look for elderly folks who don’t seem to leave any living relatives behind. The scam artist will then search through public records to find out if the deceased owned any property. With just a little Photoshop magic, they get the property transferred into their name.
3. Vacant Property Scam
This is another version of the deed transfer scam. It typically occurs when a piece of property has been left sitting vacant for a long period of time. Some inspired criminal looks up the property and decides to take a chance by transferring the property. Soon, there’s a mess with the title and the property has squatters that seem completely legal until a title search is performed.
Protection from Title Fraud
When you buy a home with a troubled title, it can cause all kinds of problems down the road. The property’s rightful heir or co-owners may stake a claim to it. Or the identity fraud may be found out. If a claim does arise against your property as outlined in your insurance policy, your insurance has you covered. It will take care of legal fees including court costs and other fees that should arise. If the claim doesn’t end in your favor, you’ll be covered up to the amount of your policy.
Minnesota Buyer Title Insurance
Purchasing a home can be one of the most exciting things you’ll ever do. But if something goes wrong, make sure you’re covered. Don’t let someone else’s sketchy morals get in the way of your future. To secure your buyer title insurance, call us at 763.494.0340, or contact us to learn more.