Over the past few years, you may have heard talk about property fraud and title theft cases in Florida. "Property fraud occurs when a party uses a forged deed to sell or transfer property that does not belong to them."* Now, a forged deed does not transfer property rights. Only the legal owner of the property can transfer the title to another party. However, title theft issues can create a cloud on the title which can be complicated to remove. 

You may be wondering, should I obtain title theft insurance? "Title theft "insurance" is marketed as a solution that monitors your title 24/7 and alerts you to any fraudulent title transfers."** However, title theft insurance typically does not cover your financial expenses incurred as a result of the fraudulent transfer. 

It is important to note that there are already several safeguards built into the real estate industry to help identify fraudulent transfers before harm occurs, such as credit reports, photo identification, title insurance, and tax return and income verifications.  Additionally, Lee County now offers a free service to Lee County property owners, alerting them to potential property fraud. The service "Property Fraud Alert" emails a notification to the registered subscriber within 24 hours after a deed or other document with the registered name or parcel has been recorded in the Public Records. For more information on this free service and to sign up, you can visit: https://www.leeclerk.org/services/property-fraud.

Between the real estate industry safeguards and the County's Property Fraud Alert service, the risk of significant harm due to title theft in Lee County is reduced. Addressing the property fraud concerns of citizens is a top priority for the Lee County Clerk of Court. Signing up for the Property Fraud Alert service offered by the Lee County Clerk of Court is a valuable, no-cost alternative to obtaining title theft insurance. 

Sources for this article and further information on the topic can be found here:

* Lee County Clerk of Court, https://www.leeclerk.org/services/property-fraud

** Taylor, Joe, Should Homeowners Worry About Title Theft? https://marketplacetitle.com/title-tips/should-homeowners-worry-about-title-theft/

Disclaimer: This article is for informational purposes only and does not constitute legal advice.