Identity Theft in Real Estate Information
Identity theft in real estate includes: deed fraud (forging a property owner's signature on a deed to transfer ownership), mortgage fraud (using a stolen identity to apply for and obtain a mortgage), seller impersonation (impersonating the property owner to sell the property and collect the proceeds), wire fraud (intercepting email communications to redirect wire transfer funds), and tenant fraud (using stolen identity to rent a property with no intention of paying). Warning signs include: an owner who does not have a local presence (out-of-state or foreign owners are more vulnerable), transactions that proceed without physical meetings (entirely remote transactions), unusual urgency (the impersonator pushes for a quick closing), and unverifiable identification (the identification documents do not match public records). Deed fraud is particularly dangerous because: the fraudulent deed is recorded in the public records, creating an apparent chain of title that may not be discovered until the true owner attempts to use the property.
Florida Legal Definition
Identity theft in real estate in Florida is addressed by: Florida Statutes §817.568 (Criminal Use of Personal Identification Information; a third-degree felony), §817.545 (Mortgage Fraud; a first-degree felony), and §817.02 (Forgery; a third-degree felony). Under §89.171, a forged deed is void (it transfers no interest, even if recorded and even if a subsequent purchaser relied on it in good faith). Under Florida recording law (§695.11), the recording of a forged deed does NOT make it valid (the true owner's title is not affected by a forged instrument). However, the true owner must take action to clear the title (filing a quiet title action to remove the forged deed from the records). The title insurance industry has implemented: identity verification procedures (requiring notarized identification with photo verification), knowledge-based authentication (verifying the signer's identity through personal questions), and video conferencing for remote closings (allowing visual verification of the signer).
How It's Used in Practice
In practice, attorneys prevent and respond to identity theft in real estate. Prevention measures include: enhanced identity verification at closing (comparing the signer's identification to public records, using knowledge-based authentication, and requiring in-person notarization), wire fraud prevention (confirming wire instructions through a verified phone call, not email), title search verification (comparing the seller's identification to the owner of record), and owner notification services (monitoring public records for new filings against the owner's property). When identity theft is discovered, the attorney: files a police report, files a quiet title action to remove the forged deed, notifies the title insurance company (if title insurance is in place, the insurer may cover the cost of clearing the title), and pursues criminal prosecution of the perpetrator. The attorney advises property owners to: monitor their property records (using county recorder online tools), respond immediately to any suspicious activity, and consider owner's title insurance (which protects against forged deeds).
Key Takeaways
- Deed fraud: forged deeds are void under FL law (§89.171).
- Recording a forged deed does NOT make it valid.
- Criminal offenses: §817.568 (identity theft), §817.545 (mortgage fraud).
- Prevention: enhanced ID verification, wire fraud protocols.
- Response: police report, quiet title action, title insurance claim.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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