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.
The "House Stealing" form of property fraud 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. Delaware law directs Recorders to check only for formats, forms, and fees; the responsibility to ensure the legality or accuracy of the data lies elsewhere. Finally, Delaware is a Race to Record state, meaning we must process documents expeditiously.
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. (You will also be alerted if you satisfy a mortgage, have a lien placed on your house, obtain a UCC or any number of legitimate recordings in your name.)
No one can take your property by fraud. Fraud is illegal. But that does not stop thieves from getting the money and disappearing before anyone discovers the theft.
In the “House Stealing” (thieves borrowing against your home's equity) variety, there is one victim, the true owner. However, in the “Seller Impersonation” (posing as you to sell your house) variety, there are two victims: the true property owner and the people who thought they had bought a nice house or a 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, only to learn that the seller was an imposter. View the US Secret Service fact sheet about how to guard against someone selling you a property they do not own by clicking here(PDF, 102KB) .
It can take time (1-2 years of litigation per the American Land Title Association) and money (an average of $50K in legal fees in 2021 per the American Bar Association) to set things right.
Again, most alert notifications will be for legitimate and expected events, such as paying a mortgage, adding someone to your deed, someone placing a lien on your property, or selling your home. These are public documents that anyone can legally access. You must stay on top of what our office records in your name.
Registering for our alert system will not prevent property theft because it is based on identity theft. Per the FBI, identify theft cannot be prevented. Your best bet for mitigating possible damage is to be alerted as fast as possible after the crime.
Please open the tabs below to learn more. Use the yellow button below to register for our FREE email notification system today.
Read a Factsheet(PDF, 574KB)
View a Presentation(PDF, 2MB)
Read what Hon Jody Sweeney says
Property Fraud in the News
Register Now!