Every year in San Diego County dozens of real estate fraud cases are referred to our office for potential prosecution. Since buying a home is one of the biggest financial investments people make, when bad actors cheat victims out of house and home, the effects are financially devastating.
With a few forged documents, scammers can satisfy the recording requirements with the County Recorder, thereby changing title to the property and effectively stealing ownership rights. This is title fraud. Bad actors also use impersonation to swindle million-dollar homes from rightful owners or heirs. This is forgery, identity theft, filing a false instrument and grand theft.
Last fiscal year, more than $300 million in real estate fraud was perpetrated against San Diego property owners. It’s an egregious figure for an egregious crime.
You might be wondering how this type of fraud was possible. There are several ways fraudsters use illegal methods to worm their way into your home, including:
Creating forged title documents and filing them with the Office of the County Recorder.
Impersonating the true owner and sending phony account information for escrowed funds.
Falsely listing property, particularly vacant property, for sale.
Recording fraudulent liens on property.
Until recently, title fraud crimes went undiscovered until the homeowner had a reason to check on title during a refinance or sale of their home.
The District Attorney’s Office fights this type of fraud with a dedicated team of prosecutors and investigators who work collaboratively with the Assessor/Recorder/County Clerk’s office to bring fraudsters to justice. However, often the damage to victims has already been done.
The San Diego County Assessor/Recorder/County Clerk Jordan Marks launched a system called Owner Alert, that will protect homeowners through a Recording Notification Service, free to all members of the public. Consumers may register online to receive an e-mail alert within 48 hours whenever a document is recorded on a registered property. Homeowners can register up to five names and five Assessor’s Parcel Numbers (APN). This service will allow consumers to get ahead of fraudsters before they’ve had the opportunity to do real damage to a property.
Previously, there were no systems in place to notify the rightful owner that title had been stolen. This gave fraudsters valuable time to obtain loans using the property as collateral or when the property is vacant, install renters and even sell the home to an unsuspecting buyer.
Consumers may register online by going to the San Diego County Assessor / Recorder / County Clerk website at: https://arccprn.sandiegocounty.gov/
Here are some tips to avoid title fraud:
Sign up for Owner Alert.
Search the official County index for documents previously recorded under your name and your property.
Use caution with online signature applications such as Docusign – read the full document to ensure it’s the correct contract and keep a copy of the signed version.
If you have a second home or vacant home, check it regularly to ensure there are no squatters, unwanted renters or fraudsters attempting to occupy the home – this can be as simple as installing an internet-based webcam at the home.
Ensure your property tax bill is paid on time and is in your name.
Ensure all your utilities are paid on time and are in your name.
Continue to take steps to protect yourself from basic identity theft.
If you believe you were the victim of a title fraud, report the incident to a local police agency or request a San Diego District Attorney Real Estate Fraud Complaint Form at realestatefraudcomplaints@sdcda.org. For more information, please visit our website at https://www.sdcda.org/preventing/real-estate-fraud/.
As your District Attorney, I’m committed to increasing communication and accessibility between the DA’s Office and the public. I hope these consumer and public safety tips have been helpful.
