Do you know that identity thieves can also try to take your home?The scam involves taking your identity information and using it to file a new deed for your home.Purchase title insurance when you buy a new home to make sure you don't make the same mistakes as someone else.Monitoring your property deed is one of the steps you can take to protect yourself as a homeowner.There are companies who will help protect against title theft for a fee, but you can do it yourself for free.
Step 1: There are different title insurance companies that you can shop around for policies at.
If you shop around, you're likely to find a better rate because title insurance companies compete with one another.After your offer on a property has been accepted, ask your real estate agent or attorney who they would recommend, then branch out from there.The names of 3 title insurance companies are required by real estate agents.They usually work with companies they've worked with before, but they might not be the best for you.The premium rate in Texas is set by the state insurance department.If rates are set, you don't need to shop around, just use whoever your real estate agent or attorney recommends.
Step 2: Wait for the title search to be completed.
The title insurance company will conduct a title search to make sure that the title to the property you want to buy is clear.Before the company will sell you insurance, any issues or discrepancies have to be cleaned up.If someone else had a tax liens on the property, it would be the most common example of a problem.The seller's responsibility is to clear the issues before you can buy the property.A title search can uncover a discrepancy with the way the boundaries of the property are described from one deed to the next.You would usually talk to the owners of the neighboring properties to resolve the issue.
Step 3: Make sure you read your policy provisions carefully.
Make sure you understand what you're buying and how long your coverage will last before you buy title insurance.There are two basic types of title insurance, a loan policy and a lender's policy.The owner's policy protects you against losses that may arise from title problems that occurred before you bought the property.The owner's policy protects you against issues that come up after you've bought the property.
Step 4: You should pay your title insurance premium.
Title insurance premiums are usually included in the closing costs for the property.Title insurance is different from other insurance in that you don't pay a premium every month for coverage.You make one lump-sum payment when the insurance is issued and it protects you for the life of the policy.Premium rates are determined by what you pay for the property.As of 2020, you would pay a total premium of $875 for a $100,000 policy in Texas.You have to buy a lender's policy to be a mortgage lender.You can buy both policies at the same time.You could get a discount on the lender's policy if you buy both.In Texas, where title insurance premiums are regulated, you can get the lender's policy for only $100 if you also buy the owners policy.
Step 5: It's a good idea to keep your title insurance policy in a safe place.
You should keep your title insurance policy as long as you own the property.You will always have it if you keep it in a fireproof box.If you have an owner title insurance policy, you should keep it even after you sell your home.
Step 6: If your home increases in value, you should buy an endorsement.
The premium only covers the amount you paid for the property.If your property increases in value over time, you can buy an endorsement to cover the difference.The price of the endorsement depends on the value of your property.If you only bought a lender's policy when you bought the property, you can upgrade to an owners policy at any time.If you buy them both when you first purchase the property, you'll probably save money because the owner's policy is usually the full price.
Step 7: Keeping sensitive information private and secure is the best way to protect it.
By protecting your identity information, you can help protect your property title.Only carry essential identification with you, keep personal and identifying information at home in a lockbox, and don't sign the back of your credit or debit cards.
Step 8: If you see signs of identity theft, monitor your credit report.
There are many credit monitoring services that you can choose from.You'll get an alert when there's a change if you sign up for notifications.You can spot attempted identity theft more quickly if you review the change immediately.Some of the services are free, while others charge a fee.You can compare the different services.A subscription service might be better for you, but make sure anything offered above and beyond what you would get from a free service is something you'd actually use and benefit from.
Step 9: When you are supposed to get property bills, set reminders.
You don't have to worry about not getting your property tax bill.If you don't, your bill could be diverted to another address.This can be a sign of attempted deed fraud.Make sure you know when you're supposed to pay your property tax bill.If you set a reminder on your phone, you'll know when to expect it.
Step 10: You can check for new property records at the recorder's office.
Call or stop by the recorder's office to find out if any new documents have been recorded for you.If you want to get a copy of a document, you might have to pay a small fee.You can check property records online if your office has a digitized system.More information about this can be found on the website for your recorder's office.
Step 11: You should keep your address up to date with your state's property tax office.
If you own property that you don't live at, it's a good idea to update your address when you move.The owner of a second or vacation home is less likely to pay attention to identity thieves.Tenants should be aware of rent payments if you're renting out a property.Identity thieves might send a letter to your tenants, posing as you, and tell them to mail their payments to another address.
Step 12: Do you know if your state has free deed fraud protection?
If you want to check with the recorder's office on your own, many cities and states offer deed monitoring services.Call the recorder's office if you want to find out.If the program is free, you should sign up for it.If you own property in Philadelphia, you can sign up for the "Deed Fraud Guard" for free on the city's website.When a document is recorded with your name on it, the service notifies you by email.New York City has a similar service.
Step 13: The recorder's office can give you a certified copy of your deed.
If you don't already have a certified copy of the deed in your records, contact the recorder's office in the city or county where the property is located.You need this to prove that you are the rightful owner of the property.A fee is likely to be charged by the recorder's office to have the copy certified.When you call the recorder's office, inquire about the total charge and payment methods.It could take a few days for your copy to be ready.The person at the recorder's office will let you know when you can pick up your copy.It's possible to get it mailed to you, but you'll have to pay for shipping.
Step 14: Inform the recorder's office of the suspected fraud.
If you suspect deed fraud while you're getting a certified copy of your deed, you should tell the recorder.If you've received notification of a recent document on your property, you can point them to it.While recorder's offices don't have any law enforcement capabilities, they can make a note in the property record that you reported deed fraud, which might prevent the identity thief from taking out a mortgage on it.
Step 15: You can file a police report with the local police.
If you want to file a deed fraud report, you need to take your deed and any other evidence you have to the nearest police precinct.An officer will take your report and evidence.If you want to add more information to your report, you should get the officer's name and contact information.It might take a few days for the report to be written.The officer will let you know when you can pick it up.The official report from the local police is a valuable record for you.Along with your deed, title insurance policy, and other documents, keep it.
Step 16: You can report the fraud by contacting the state attorney general's office.
Identity theft and fraud are handled by your state attorney general.Look up contact information and file a report.They will attempt to identify the perpetrators.You can call the state attorney general's office to file a report.To speak with a staff attorney, you may need to go to the office.They should get copies of your police report and deed.If you inform the state attorney general's office, they will alert other homeowners and help protect others.