How to Protect Yourself from Deed Fraud in Arizona

After more than 30 years in Phoenix-area real estate, I've seen plenty of ways a transaction can go sideways. One I want every homeowner to know about is deed fraud, sometimes called title theft. It's not common, but when it happens it can turn your life upside down.

WHAT IS DEED FRAUD?

Deed fraud happens when someone forges a signature on a deed or other ownership document and records it with the county, making it look as though ownership of your property has changed hands. Once that document is recorded, a scammer may try to sell the home, borrow against it, or transfer it again, often before the real owner knows anything happened.

In one well-known Scottsdale case, a person posing as a homeowner who had passed away years earlier signed a deed and sold the house. The family only found out after the home was already listed for sale.

WHY ACTING FAST MATTERS

The Arizona Supreme Court recently ruled in a deed fraud case that, under certain conditions, a recorded fraudulent deed can actually strip an owner of their property rights. Reclaiming a property after fraud can also be slow and expensive. The sooner you catch a suspicious filing, the better your options.

STEP 1: SIGN UP FOR YOUR COUNTY'S FREE RECORDING ALERT

This is the single most useful thing you can do. Maricopa County offers a free service called Maricopa Title Alert. You enter the names you want monitored, and whenever a document is recorded containing one of those names, you get an email at the end of that day with a link to the document.

A few tips:

• Enter every name you hold title under, including any LLC or trust.
• Add family members' names if you manage a property for them.
• Sign up at recorder.maricopa.gov/recording/title-alert.html or call the Recorder's Office at 602-506-3535.

Arizona law now requires every county to offer a similar alert system, so if you own property outside Maricopa County, check your county recorder's website.

STEP 2: KEEP YOUR RECORDS CURRENT

• Make sure the county has your correct mailing address.
• Look up your property in the recorder's records at least once a year.
• Watch for warning signs, like mail addressed to someone else at your property or unexpected changes to your property tax statements.

STEP 3: BE EXTRA CAREFUL WITH HIGHER-RISK PROPERTIES

In general, fraudsters tend to go after vacant land, rental properties, second homes, out-of-state owners' properties, homes with no mortgage, and properties of owners who have passed away. If you've inherited a home, don't leave it in the decedent's name. Get the title updated.

STEP 4: WATCH FOR SELLER IMPERSONATION

If you're selling, or working with someone who is, be wary when the "owner" refuses to meet or video call, pushes for a fast all-cash closing, or lists a mailing address that doesn't match county records. The American Land Title Association publishes a helpful list of red flags for sellers, buyers, and agents.

WHAT TO DO IF YOU SUSPECT DEED FRAUD

1. Contact the Maricopa County Recorder's Office right away at 602-506-3535.
2. Report it to the Arizona Attorney General's consumer office at azag.gov/consumer.
3. File a report with local law enforcement.
4. Talk to a real estate attorney or your title company about challenging or removing the fraudulent document.

This post is general information, not legal advice.

PROTECT WHAT YOU'VE BUILT

Your home is probably your largest asset, and a few minutes spent on a free alert can save you years of headaches. If you'd like help reviewing your property records or have questions about buying or selling anywhere in the Phoenix metro area, I'm happy to help.

David Thomas, HomeSmart Realty