Imagine waking up one day to learn that your property — maybe a vacant lot, cabin, or rental home — has been sold without your knowledge. The deed was forged. The sale closed. And a criminal, pretending to be you, walked away with the proceeds.
This is title fraud, also known as seller impersonation fraud — and it’s one of the fastest-growing real estate scams in the country. Minnesota homeowners are not immune.
How Title Fraud Works
According to recent alerts from the U.S. Secret Service and First American Title, criminals are targeting vacant and unencumbered properties — parcels that are free and clear of mortgages and often owned by someone who lives out of state or doesn’t regularly check on the property.
Here’s how the scam typically unfolds:
1. The Fraudster Finds a Target: Using public records, criminals identify properties that are vacant, rental, or investment properties.
2. They Impersonate the Owner: The scammer creates a fake ID or passport and contacts a real estate agent pretending to be the owner.
3. They List the Property Below Market Value: To generate fast interest, they ask for a cash sale and a quick closing.
4. They Avoid Face-to-Face Contact: The fraudster refuses to meet in person or via video call, claiming to be overseas or unavailable.
5. They Forge the Notarization: The “seller” arranges their own notary — often a fake one — to sign closing documents.
6. They Disappear After the Sale: Once the title transfers and funds are wired, the scammer vanishes.
The real owner usually discovers the fraud months or even years later, when they receive a tax bill or notice of transfer.
Could you be at risk?
Victims whose homes are targeted for these scams include:
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People whose homes are paid off and have no mortgages
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People whose properties are not owner-occupied, such as rentals, investment homes, etc. and who may not visit the property often
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People who are older and may not be perceived as tech-savvy by the scammers
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People receiving unsolicited contact from strangers asking about buying or selling property
How to Protect Yourself and Your Property
1. Homeowners can take steps to monitor their property:
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Enroll in your county’s property fraud alert system (available in many Minnesota counties).
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Check your property records annually through your county recorder’s website.
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Be cautious with unsolicited offers to buy or sell property.
If you find out your property has been targeted, contact a licensed real estate attorney to figure out your next steps.
2. Prevent and Deter
It costs nothing to be cautious and alert, but monitoring only alerts you of fraud when it’s already happening.
We can help you with a strategy to deter fraudsters from targeting your property.
Making your property an unappealing target may be more cost effective than paying for professional monitoring or insurance.
Always work with a reputable title company and attorney on all transactions — even small or “simple” ones.
Warning Signs of a Title Fraud Scheme from the Buyer’s side
If you’re interested in purchasing property, watch for these red flags during a sale or property inquiry:
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Property is vacant, non-owner occupied, or free of a mortgage
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Seller insists on a quick closing or cash-only buyer
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Seller communicates only by text or email and avoids video calls, phone calls, and meeting in-person
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Seller refuses identity verification or insists on using their own notary
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Sale price is below market value (too good to be true)
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Seller claims to be out of the country
If you see multiple warning signs, stop and verify before proceeding. You can also report suspected fraud with local law enforcement, the Internet Crime Complaint Center (IC3), and the Federal Trade Commission (FTC).
