Property Fraud
Property fraud is a form of identity theft that involves the title to your home.
Dubbed "House Stealing" by the FBI 15 years ago, thieves steal your identity and then borrow against the equity in your home.
"House Stealing" is rare in Kent County because–unlike other parts of the country--a Delaware attorney must be involved when the property is colleterial. Even so, thieves can use a Quit Claim Deed, which requires a notary public but not an attorney. Delaware has accepted online and remote notarial certifications since August 2023.
Beginning in 2023, a different form of property fraud--"Seller Impersonation"–began showing up in Kent County. Here, someone steals your identity and lists your property for sale using real estate sites such as Realtor.com or Zillow. Most of the transactions take place online. Sales are cash only. This scam works because today's AI technology makes it easy for thieves to forge realistic-looking documents.
If any of the many documents that make up a deed is fraudulent (such as the ID card, the notary, the survey, or if an elder was duped or forced by a caregiver or family member), the deed is fraudulent. The Recorder's office has no way of knowing this. In addition, Delaware law directs Recorders to only check for formats, forms, and fees. Delaware is a Race to Record state meaning, the documents should be processed expiditiously.
Registering for our FREE property fraud alert software is the only way to know you are the victim of a scam. Our alert software will email you within days if we record any new documents--legitimate or illegitimate--in your name. You can then decide if fraud occurred and minimize your damage.
Your house cannot be taken by fraud. Fraud is illegal. But that does not stop thieves from getting the money and disappearing before the theft is discovered. There are two victims in Seller Impersonation: the true property owners and the people who thought they bought a nice house or vacant plot of land. Instead, these people are left holding the bag for the cost of the land and the improvements they made to it before the fraud was discovered.
It can take time (1-2 years) and money (an average of $50K in legal fees in 2021 per the American Bar Association) to set things right.
Most alert notifications will be for legitimate and expected events, such as paying a mortgage, adding someone to your deed, or selling your home or someone placing a lien on your property. But even so, it is a great idea for you to stay on top of documents that are recorded in your name. Use the yellow button below to register today.
Read a Factsheet(PDF, 574KB)
View a Presentation(PDF, 2MB)
Read what Hon Jody Sweeney says
Property Fraud in the News
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