According to a recent ABA Journal article, some Court clerks are developing methods to deal with quitclaim deed fraud. Specifically, the ABA notes that:
We believe this is a great idea as we have handled numerous cases involving forged deeds. Currently, in Los Angeles County, anyone can simply record a quitclaim deed as long as they can fool a notary into thinking the property owner is appearing to sign the deed. In Los Angeles County, in an effort to curtail real estate fraud, the Los Angeles County Recorder’s office typically mails a copy of any newly recorded document to the current/prior record title holder with some tips on what to do if the recording is fraudulent. We are very much in favor of expanding this practice.
Where there is ownership fraud or fraud in the execution of a quitclaim deed, typically the property owner must go to Court and seek the Court’s assistance in setting the forged deed aside. Unfortunately, property owners often remain in the dark for considerable periods of time before they realize that a fraudulent document has been recorded.
A quitclaim deed conveys title from a “grantor” to a “grantee.” Contrary to this, a grantor has no legal liability if the title is flawed in some way. If found guilty, the forger will suffer whatever penalty your state mandates for the crime.
We certainly encourage as many safeguards as possible to protect property owners. For more information or to inquire about regarding your real estate fraud issue, please contact our real estate lawyers in Los Angeles at (310) 954-1877 or [email protected].