Property fraud is a growing concern in real estate, targeting buyers, sellers, and even renters. Scammers exploit legal loopholes, digital vulnerabilities, and public records to commit fraud that can cost victims their homes or savings. Below are the most common types of property fraud and how to guard against them.

1. Title Fraud

• Criminals forge documents to transfer ownership of a property they don’t own.

• Often targets vacant homes, elderly homeowners, or properties owned free and clear.

• Victims may not discover the fraud until they try to sell or refinance.

Protection Tips:

• Regularly check your property records through your county register of deeds.

• Sign up for title monitoring alerts.

• Consider purchasing a Homeowner’s Policy of Title Insurance.

Relevant Law: MCL 750.218

False pretenses with intent to defraud; violation; penalty; enhanced sentence based on prior convictions; “false pretense” defined.

2. Mortgage Fraud

• Involves falsifying information during the loan process.

• Includes fake income, straw buyers, or silent second mortgages.

• Can be committed by borrowers, brokers, or even appraisers.

Protection Tips:

• Work only with licensed mortgage professionals.

• Review all loan documents carefully.

• Report suspicious activity to your lender immediately.

Relevant Law: 750.219d

Residential mortgage fraud; prohibited conduct; venue; violation as felony; penalty; separate offenses; affirmative defense; property subject to forfeiture; order; definitions.

3. Foreclosure Relief Scams

• Fraudsters target homeowners in distress, promising to “save” their homes.

• They may charge upfront fees or trick owners into signing over the deed.

Protection Tips:

• Never pay fees upfront for foreclosure assistance.

• Consult a licensed attorney before signing any documents.

• Verify credentials of anyone offering foreclosure help.

4. Rental Scams

• Scammers pose as landlords and collect deposits for properties they don’t own.
• Victims often find out after paying and arriving at a property that’s not available.

Protection Tips:

• Always visit the property in person.
• Verify ownership through public records.
• Avoid paying in cash or via wire transfer.

5. Wire Fraud

• Hackers intercept emails between buyers, sellers, and agents to redirect closing funds.

• Victims unknowingly send money to fraudulent accounts.

Protection Tips:

• Always verify wire instructions by phone using a trusted number.

• Be cautious of last-minute changes in payment details.

• Use secure email and avoid public Wi-Fi during transactions.

6. Value/Appraisal Fraud

• Property value is inflated or understated using false appraisals or hidden defects.

• Often used to deceive lenders or buyers.

Protection Tips:

• Get an independent appraisal.

• Hire a licensed home inspector.

• Review seller disclosures thoroughly.

How Attorney Ann Howard Can Help

With decades of experience in real estate law, Attorney Ann Howard ensures your property transaction is secure from start to finish. She meticulously reviews contracts, verifies title authenticity, and confirms that all documents are legally binding and compliant with Michigan law. Whether you’re buying, selling, or refinancing, Ann Howard provides peace of mind by protecting your interests and preventing costly legal issues.

Q: How can I check if someone has fraudulently transferred my property title?

A: You can search your property records through your county’s register of deeds website. Many counties offer free alerts for any changes to your title.

Q: Is title insurance really necessary if I already own my home?

A: Yes. A Homeowner’s Policy of Title Insurance can protect you from future claims or fraud, even after you’ve owned the property for years.

Q: What should I do if I suspect property fraud?

A: Contact a real estate attorney immediately. You should also notify your county recorder’s office and file a police report if necessary.