Real estate is a valuable asset, and unfortunately, it is often the subject of fraud and forgery. The public records that are relied upon during the title search are less than perfect, and it is often difficult to detect instances of fraud and forgery associated with the land records. Title insurance is necessary to protect lenders as well as buyers from fraud and forgery in real estate.
Real Estate Fraud and Forgery
The people involved in real estate fraud and forgery can be shockingly clever and persistent, and they can spell major trouble for buyers. Forgery and fraud are hidden hazards that often remain undetected until after the closing despite even the most careful precautions, so it’s crucial to invest in title insurance to protect your investment.
There are several instances in which fraud or forgery have led to claims against titles. There have been cases in which people have forged their ex-spouse’s signature on important documents. After the sale of the property, the party whose signature was forged file a claim against the title because they property was not legally sold.
Fraud may also occur in the form of fake documentation, including deeds. A talented fraudster could sell a home they never even owned, and the problem may not be detected until after the closing. When a situation like this arises, the rightful owner of the property can demand that the new owner vacate the premises immediately since it was not purchased or transferred legally.
Protection Against Fraud and Forgery
Mortgage lenders almost always require buyers to purchase lender’s title insurance to protect their investment in the event of a defect or claim arises involving the title. It is important to note, however, that this policy provides no protection for the buyer. To protect your investment, we recommend purchasing an owner’s title policy.
At Shore Title, we specialize in title insurance in South Jersey. Contact us today by calling 609-263-7472.