realestate

Million-Dollar Property Heists: Protecting Your Real Estate from Sophisticated Scams

Brazen real estate scams target high-end properties with fake documents.

R
eal estate scammers have become increasingly brazen, targeting high-end properties with forged documents. These scammers can claim ownership of homes they've never visited and often receive the benefit of the doubt from authorities. Once a phony claim is filed, it's challenging to remove it from the system.

    Scammers exploit technology to forge and file fake deeds online. They gather information about a property and its owner from public records, then create a counterfeit deed and submit it to the local county recorder's office. This essentially transfers ownership to the scammer, who can now sell or mortgage the property.

    To rectify this situation, property owners must take their case to court, providing evidence that the deed is fake. However, this process is slow and burdensome, with the rightful owner shouldering the proof burden. The dispute can drag on for months or even years, during which time the owner cannot sell or refinance their property.

    A recent example of this issue involves Spelling Manor, a 56,500-square-foot mansion built by TV producer Aaron Spelling. A couple allegedly filed a fake deed with Los Angeles County, claiming ownership of the property. The court is still investigating, leaving the real owners stuck in limbo.

    Wealthy homeowners, particularly those in high-end areas like Los Angeles, are more vulnerable to this type of scheme. Luxury properties without mortgages make it easier for scammers to pull off a fake deed. Warning signs include unexpected mail addressed to someone else at your property and missing property tax bills.

    Regularly checking property records can help catch these red flags early. Alternatively, title-monitoring services can alert you to any changes or new filings on your property, allowing you to take swift action.

High-end property owners discuss protecting homes from sophisticated real estate scams worldwide.