A major legal concern for Arizona property owners and real estate professionals are the rising rates of deed fraud. Some properties are more vulnerable than others. This article will discuss the properties that are at higher risk, how to protect your property and what to do if you find yourself one of the unfortunate property owners who have fallen prey.
Deed fraud is on the rise in Arizona. Some of the properties most targeted include vacant land, unencumbered properties (e.g. property without a mortgage) and inherited assets due to the time they often sit without occupants. Fraudsters will use fake identification, stolen notary stamps and even AI to falsify deeds and record them against properties. In some cases it takes years for the property owner to discover the fraud and then it may even be too late. In Arizona, some fraudsters have made adverse possession claims effectively shifting the burden to the homeowner to not only discover the fraud, but to take action within a specific period of time to avoid opening the door to any claims the fraudster may be able to use to take lawful possession of the property.
The best course of preventative action is to sign up for the free property alert service (e.g. Maricopa County Title Alert or Pima County Fraud Notify). This service alerts you via email when anything is recorded against your property or in your name so you can review immediately and catch any wrongfully recorded deeds within days instead of years.
If you find yourself in a situation where a deed has already been fraudulently recorded against your property, the best course of action is to file a quiet title action and bring it before the court as soon as possible. Once your matter is filed, you can then record a lis pendens against the property and prevent the fraudster from selling the property while litigation is pending.
Beyond the courtroom, you can also notify the police and file a report. Obtain certified copies of the recordings from the county recorder’s office. If a notary was involved, you can inform the secretary of state. Lastly, file a formal complaint with the AG’s Office and the Arizona Department of Real Estate.
If you have questions regarding any recordings against your property, please contact our offices and consult with one of our qualified real estate attorneys at 602-277-4441 or use the form below to schedule a free consultation.