A case in western North Carolina recently ended with convictions and the return of seven parcels, worth more than $500,000, to their rightful owner. The land had been transferred out from under them with forged quitclaim deeds. They got it back, but only after a criminal investigation. On paper, the transfers looked like ordinary recorded documents.

Here’s what to know about quitclaim deed fraud!

What is a Quitclaim Deed?

A quitclaim deed passes along whatever interest the signer has, with no warranties and no title check. It’s quick and cheap to prepare and record, and nothing in the document proves the signature is real or that the owner knew about it. 

People committing this kind of fraud usually want to sell or borrow against the property before the real owner finds out. A recent transfer followed by pressure to close quickly is the pattern to watch for.

When you pull title on a property, look at the date of the most recent transfer. 

What you can do

Review the chain of title on every listing and flag any recent quitclaim deed. Confirm the seller’s identity on your own, using a phone number you found independently and, if possible, a video call or in-person meeting. Compare signatures on recent deeds with older recorded ones. If something feels wrong, bring in the title company or closing attorney early.

A quitclaim deed recorded in the last few months should make you slow down, particularly if any of the following is true:

• The property went into a trust or LLC for no obvious reason
• The new owner or trustee is a relative, caregiver, or acquaintance of the old owner
• The deed shows no sale price or consideration
• The property was listed or offered for sale soon after the deed was recorded

The presence of these should not be considered absolute proof of fraud. However, they should give you pause, particularly in the presence of two or more.

Buyers should make it a habit to check when the last transfer happened, and treat a fresh quitclaim deed as a reason to slow down and verify. An uncomfortable conversation with a seller is a small cost compared to being part of a fraudulent sale. If you have questions about quitclaims or other common kinds of real estate fraud, get in touch with your local Land Professional today!