Several areas around the country are reporting that individuals and organizations are recording fraudulent documents at Registries of Deeds. These recorded documents are fraudulently showing ownership of another’s property. Even more alarming, the F.B.I. reports that this type of fraud is one of the fasted white collar crimes in the U.S. When someone purchases property, the method to memorialize the purchase and ownership is by recording at least a Deed at the appropriate Registry of Deeds. Until recently, this action was considered an ironclad way for title examiners and others to determine the ownership of real estate. However, in recent times, criminals have taken advantage of what appears to be a lack of security, confirming the validity of the transaction.
What happens if you are a victim of this crime? You no longer own your property! As if you needed more bad news, you also unknowingly violated your Mortgage covenants, so your lender can call your loan. It’s similar to identity theft, but on a colossal scale. In the interim, the criminal can borrow against the property, which can create large liens, at the very least, that will burden and run with the land. You could lose the property to creditors. For many, their property is their life savings and/or nest egg—perhaps the largest asset they can leave their children. So, the elderly are especially vulnerable.
How can you combat this potential disaster? In many communities, at least locally, property owners can enlist the help of various Consumer Notification Services, often with little or no charge. One this step is taken, it allows property owners to monitor their real estate for liens, deeds, or homesteads that might be recorded against the property, for example. In order to begin protecting oneself, the most reliable search would be with your Registry of Deeds. Most real estate attorneys are well equipped to efficiently handle this, if you are not sure how to go about this task. Furthermore, many Registries have been alerted to this crime, and have or will be organizing a call center and online search tool, for owners’ convenience. For example, Norfolk County has taken steps to protect you: www.norfolkdeeds.org, click on Consumer Notification Alerts to register. For many credit monitoring services, such as Credit Karma, www.creditkarma.com, this activity would most likely trigger a change in credit rating that would alert the consumer, but this would take place after the fact. There is no substitute for checking your title now and registering directly with the Registry of Deeds.
How will the Consumer Notification Service notify its client of a potentially fraudulent action? If a document is recorded against an enlisted name, the subscriber will be alerted via email, or whichever other media which the consumer selects when they initial enlist. If a subscriber believes a fraudulent land record has been recorded against their property, they can immediately contact their Registry of Deeds Customer Service department where the potential problem will be addressed.
If you have received confusing notices recently, or to simply learn more about these and other property-related risks and pitfalls, “like” us on www.facebook.com/LawOfficesRRP or follow us on twitter.com @rrpesq.
The Law Offices of Robert Pellegrini, Inc., based in Bridgewater, Massachusetts, also has offices located in Dedham, and Sharon, Massachusetts. We assist a variety of clients with property issues, including acquisition, permitting, zoning, development/construction, leasing/tenant matters and sale. Potential clients can contact us at (508) 807-1131, or on the web at www.RRPESQ.com.
-Rob