Owning real estate is a proven way to build wealth, hedge against inflation and diversify assets. As more capital flows into property, transactions have become faster and more digital.
Technology has improved efficiency, but it has also created new avenues for fraud that many owners underestimate.
How Title Theft Works
Title theft is one such risk. In a typical scheme, a criminal forges the owner's signature on a deed and records it with the county register of deeds, transferring ownership on paper. Once the fraudster appears as the owner of record, they can sell the property to an unsuspecting buyer, take the proceeds and disappear, often before the true owner discovers the problem.
Why the Risk Has Grown
Historically in the Carolinas, closings were conducted in person at law offices before attorneys and notaries. Parties presented government-issued identification, signed documents face-to-face and were observed by multiple professionals. This process was not merely ceremonial — it served as a meaningful safeguard against impersonation.
In recent years, remote and hybrid closings have become commonplace. Borrowers may sign from different states, documents are mailed overnight and notaries increasingly operate virtually. These changes reflect modern expectations for convenience, but they also reduce the human touchpoints that traditionally helped detect fraud.
Does Title Insurance Cover It?
In most cases, a standard owner's title policy does not cover title theft that occurs after the policy is issued. Coverage varies by carrier and endorsement, so buyers and sellers should confirm protections with their closing attorney or title underwriter.
Recommendations for Industry Partners
Vigilance is essential. Lenders and Realtors should verify identity of prospective borrowers and property owners early in the transaction. Closing attorneys handling remote signings should consider additional safeguards such as live video verification or reputable traveling notaries.
Recommendations for Property Owners
Owners who have paid off their mortgages can be more vulnerable to title theft. Unencumbered properties are attractive targets because there is no existing lender monitoring the title. Maintaining a small, precautionary mortgage or home equity line of credit can add another layer of scrutiny before any transfer is recorded.
Protecting Your Investment
As remote real estate transactions increase, it's important to be an informed consumer. If you have questions about how to securely handle your next real estate purchase, contact any of the real estate attorneys at Morton and Gettys to help you navigate the ins and outs of closings, build wealth and protect your assets for the future.
This article was originally published in the March 2026 issue of Stroll Firethorne magazine. Written by Trent Womble, Partner at Morton and Gettys Attorneys at Law (mortongettys.com, 803-366-3388).