Last month’s Board Brief looked at the purpose and value of Title insurance companies. This month, we look at the claims of Title Theft Insurance, which is very different.

Title Theft Insurance is sold by many legitimate companies. They claim criminals can create fraudulent ID’s and other documents, submit them to your local jurisdiction responsible for maintaining property records and have the title transferred without you knowing. While this is possible and can happen, it is difficult for criminals to accomplish. The chances of Title fraud are proportionately higher for vacant property and owners of out-of-state property that are absent for long periods of time.

NOTE: There are many layers in the process of transferring a title. Anyone trying to create a fraudulent transfer of Title will be scrutinized by several people employed by the govering authority.

What are the signs of fraud? If you were to be subject to a potential Title fraud attempt you would expect several things to occur. For example, you would not be receiving utility bills, tax bills or other property related notices or you’d be receiving them in someone else’s name.

If you have a mortgage the financial institution has a lien on the property and must be notified to certify that the lien has been paid in full. So, if you have a mortgage, you are even less likely to be susceptible to Title fraud. In reality, the financial institution owns your property until you have paid the loan in full.

If you do not have a mortgage or have paid off the mortgage your title will be free and clear (i.e., no liens). You could encounter such an attempt to transfer your Title and have your home sold out from under you, but the real risk in that situation is to the potential buyer, not you. We will cover this situation in our final notes in this series next month.

Our Advice If you suspect an issue of tampering with your Title and you own your home outright, first visit via the Erie County website (https://www.countyoffice.org/property-records/). It’s a matter of public record. If you are not listed as the owner of your property there, immediately contact the County office as well as your Assessor’s office.be scrutinized by several people employed by the governing authority.