Deed fraud increasingly affects landowners and buyers across the commonwealth and primarily targets unencumbered, vacant properties. Fraudsters use information available on the internet and digital tools to forge signatures and impersonate property owners, often advertising rushed, cash-only sales. Fraudulent sellers may bypass typical third parties in the transaction process, such as real estate agents and mortgage lenders, leaving victimized buyers especially at risk without this professional oversight. At the root, deed fraud occurs when a fraudulent seller’s identity is not accurately verified during the real estate transaction process.

Deed fraud, also referred to as title fraud, title theft, and seller impersonation fraud, occurs when a property title is fraudulently transferred by a bad actor impersonating the rightful property owner or otherwise fraudulently listing the property for sale. Deed fraud occurs all over the United States and is particularly prevalent in the Northeast, according to reported cases. (*1) In 2023, 28% of title insurers saw at least one seller impersonation fraud attempt, and in April 2024 alone, 19% of insurers saw at least one attempt. (*2) In 2023, 21% of the money spent by title insurers went toward fraud and forgery claims.(*3) Deed fraud most commonly involves vacant land and homes that are not regularly occupied (i.e., second homes or vacation homes), and targeted properties tend to have clear titles.(*4,*5,*6) Fraudsters may use publicly available records to identify vacant, unencumbered properties and information about true property owners. They may use unknowing real estate agents and title agents during the transaction process and may successfully bypass notarial identity verification. In instances of deed fraud, common indicators of fraudulent seller behavior include the request for a cash sale, the property being listed below market value, the request for signing and notarization to be conducted remotely, and urgent communication conducted via email or text only.

The technical advisory group convened by Virginia Housing in response to Senate Bill 1270 (and its companion House Bill 2396) included 25 members representing all aspects of the real estate transaction process, including real estate agents, mortgage lenders, mortgage insurers, land title and settlement agents, notaries, lawyers, and clerks of court. Members provided their own encounters with deed fraud, insight into vulnerabilities within the transaction process, and recommendations for how to best address these vulnerabilities based on their professional experience. For each recommendation compiled in this report, members of the technical advisory group were given the opportunity to comment, express their endorsement or dissent, and raise specific concerns and suggestions.

The research team and technical advisory group identified key vulnerabilities that introduce opportunities for deed fraud throughout the real estate transaction process. Often, multiple unknowing parties are used by fraudsters throughout the transaction process to carry out these fraudulent sales.

Key vulnerabilities that were identified include

• Publicly available land records allow fraudsters to identify vulnerable properties and collect information used to impersonate property owners.

• Many real estate agents are unprepared to identify and prevent deed fraud when approached by a fraudulent seller.

• No training or testing is required to be commissioned as a notary public or electronic notary public in Virginia, meaning that many notaries lack training in identifying potentially fraudulent signers.

• With advancements in deepfake technology and AI-generated material, it is easy for fraudsters to forge identification documents or create deepfake video impersonations allowing them to pass identity verification processes conducted by notaries and electronic notaries.

• Closing agents are often the last line of defense against a fraudulent sale, and many title insurers have incorporated advanced fraud detection techniques. However, more training and resources are needed to reduce risk and protect property owners.

• In Virginia, clerks of court are required to record all documents submitted for filing that appear to contain the necessary information, signatures, and proof of notarization, regardless of whether a document appears to be fraudulent or forged.

In collaboration with the technical advisory group, the research team compiled a list of 25 recommendations (and 14 sub-recommendations) for the prevention of deed fraud and for the protection of property owners. The recommendations address a wide range of issues related to deed fraud, covering identity verification, fraud detection, alert systems, security of land records, training and education, criminal enforcement, and victim remedies. Each recommendation includes a detailed description with relevant model legislation from other states, work from key advocacy bodies, and areas for further research. Input directly from the technical advisory group is included with each recommendation, and background information is provided to contextualize the issues each recommendation addresses and to describe any relevant current policies or solutions within Virginia.
_________________________________________________
(*1) National Association of REALTORS® (2025). Deed and Title Fraud Survey.
(*2) American Land Title Association (2024b). New Study Shows Increase in Seller Impersonation Fraud.
(*3) American Land Title Association (2024a). Analysis of Claims and Claims Related Losses in the Land Title Insurance Industry.
(*4) National Association of REALTORS® (2025). Deed and Title Fraud Survey.
(*5) American Land Title Association (2023). Wire Fraud Advisory: Vacant Property Fraud.
(*6) New York State Attorney General (2022). Attorney General James Announces Arrests in New York City Deed Theft Ring.