Title Fraud in Arizona: What Every Homeowner Must Know

Homeownership is part of the American Dream. What would you do if that dream was literally stolen out from under you?

A new scam is circulating, and homeowners in Arizona are not exempt. In a recent case in Scottsdale, two women tried to sell a home they didn't own. This seller-impersonation scam is a growing problem.

According to the American Land Title Association, this scam has been reported by nearly one-third of title insurance companies.   By early last year, two in ten had already faced similar fraud. Arizona's real estate market has been heating up in the last five years, and now vacant or investment properties are especially vulnerable to this scam.

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How Can Homeowners Protect Themselves?

Arizona law requires deeds to be recorded with the county recorder. According to A.R.S. § 33‑411, property documents must be recorded and properly acknowledged to protect buyers and lenders.

READ MORE: FBI Warns Of Arizona Toll Scams Targeting Residents

Even if there are minor errors in the documentation, once it is recorded, the document remains valid. Out‑of‑state acknowledgments and government grants are also recognized in this law.

Scammers target vacant or second properties because they know they're less likely to be occupied or inhabited by the owner. As a result, homeowners should make it a regular habit to check county records. It's a good idea to confirm that no unauthorized transfers have been filed against your property.

Read this: Protect Yourself From Gift Card Scams: A Cautionary Tale

Experts also recommend:

• Slowing down transactions if a seller is in a rush to sell to you. This could be a red flag that they're not being entirely transparent with you.
• Verifying identities through official tax records. If they're using someone else's credentials or selling on behalf of someone else, verify everyone's identity before proceeding.
• Closing only with trusted title companies or attorneys. Make sure you choose these agencies. Don't be talked into using someone they "trust", since they may be trying to steer you away from reputable sources.
• Comparing signatures on deeds with past filings. This is easy to overlook, but this simple task could save you a lot of heartache.

What If You’re a Victim of Title Fraud?

If you discover your property has been fraudulently transferred, contact local law enforcement immediately. Then call the county recorder’s office.

As a victim, you can also file a civil action to quiet title under Arizona law, A.R.S. § 12‑1101. This law allows courts to restore rightful ownership.

I can't stress this enough: quick action is critical; fraudulent transfers can lead the new "owners" to sell the property to someone else or even demolish it. It's happened more than once across the country. A woman in Missouri even tried to sell Elvis Presley's Graceland!

Title fraud thrives on speed and silence, but knowledge is power.