Harry’s title monitoring service does not provide any assistance in defending him against this illegal transfer. Harry’s title monitoring service catches it and notifies him of the fraudulent transfer. Later, Sam Scammer, purporting to be Harry, fraudulently sells Harry’s property to another person and forges Harry’s name on the deed. ![]() When Harry Homeowner bought his home, he decided to use a title monitoring service rather than purchase an owner’s title insurance. In a fraud scenario, title monitoring services notify a homeowner if the fraud occurs, while an owner’s title insurance policy protects and defends a homeowner against it. Owner’s title insurance is a one-time expense and protects a homeowner against others who may claim to have an interest in your property. Title monitoring is typically a monthly subscription-based service that monitors online records and databases for any mortgages placed or transfers of the title (i.e., the deed) to a homeowner’s property. The answer lies in the distinction between what these title monitoring services offer versus what coverages an owner’s title policy affords. But, of course, buyers should always seek to safeguard themselves and their most significant investment: their property. The misconception is so pervasive that in June 2022, the Office of the Maryland Attorney General issued a Consumer Advisory telling consumers that title lock is, basically, a waste of money (Maryland Office of the Attorney General, 2022). The scare tactics employed by these companies are seemingly effective because some buyers subscribe to a title monitoring service instead of purchasing an owner’s title insurance policy because they believe the title monitoring service affords them better protection than an owner’s title insurance policy. So, what is title fraud? Title fraud is when someone fraudulently conveys real property owned by someone else to a third party, thereby divesting the real property owner of their ownership interest in the property. Rather, these companies claim to protect you from title fraud. The first thing to know is that these companies do not “lock your title” such that a transfer could never occur. ![]() So, what’s the deal? Is this a quick title solution? If you have ever had a sleepless night or an early morning wake-up, then you have undoubtedly seen the ads on the TV for title protection and monitoring companies like Home Title Lock promising home fraud prevention.
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