A property title search is a comprehensive process that verifies the legal ownership of a property by reviewing public records, land deeds, and other relevant documents.
This is typically done to identify the rightful owners of a property and also helps new buyers uncover any claims, liens, or encumbrances that can affect the title.
The Australian title insurance industry was expected to grow at a compound annual growth rate (CAGR) of 13.7%, reaching $683.89 million by 2024.
However, conducting a property title search isn’t always straightforward.
There are several red flags to be aware of. If you’re not cautious, you may end up facing serious trouble. But before diving into these red flags, let’s take a closer look at what land fraud means.
What is Land Fraud in a Property Title Search?
In a property title search, land fraud or property title fraud refers to one of the many types of real estate fraud, where unauthorised or fraudulent transfers in property ownership occur.
Here, the actual or legitimate property owner might not even be aware that their property rights have been compromised. Fraudsters typically carry out these activities to sell or mortgage the property without the owner’s knowledge.
There are several types of land fraud associated with property title searches, including document manipulation, unauthorised transfers of ownership, and impersonation fraud.
Homeowners need to be aware of the different types of fraudulent activities that can occur during property title searches to prevent any mishaps. Let’s know some of them here.
Types of Real Estate Frauds Related to Land
1. Mismatched Seller and Owner Names
One of the biggest red flags to be aware of during a property title search is when the name of the seller differs from that of the legal property owner.
As a buyer, verify if the legitimate property owner is the one selling the house or property to you by checking the land registry records. Get a copy of the deed to know more.
In Australia, for example, each state and territory will have a Land Titles Office from which you can confirm ownership.
If you see that the seller is not willing to provide you with the necessary proof of ownership, it might indicate that they’re hiding something important.
2. Forged or Altered Documents
Document forgery is another concern. Fraudulent documents may look convincing at first glance, but often contain inconsistencies. Many scammers forge documents and make them seem almost identical to the authentic papers.
Fake documents are often printed on low-quality paper with unauthorised or poor fonts. Check for unusual printing styles, irregular details of the property name and ownership, and missing details.
Authentic property title search documents will always contain registration numbers, stamp duty information, and the registrar’s signature.
Counterfeit documents may contain poor-quality stamps, and they will likely lack official registration marks or signatures.
3. Unclear Communication
Another major red flag is when the seller only wants to communicate via email or text messages, or repeatedly requests your identity documents via personal email addresses or phone numbers.
Remember, genuine real estate agents or property sellers will always prefer face-to-face communication over emails and text messages. Moreover, fraudsters also find it easier to ask clients for their identity documents via email because they’re easier to replicate and misuse.
Therefore, never send personal documents like your identity cards, bank account details, or any other sensitive information without first meeting and verifying the seller’s identity.
Also, check whether the agent representing the property is legally registered under the relevant state or territory.
4. Unrealistically Low Property Prices
Remember, if the prices seem too good to be true, they probably are. Scammers and fraudsters will often price the land at very low rates to ensure they get it sold fast. This is especially true for vacant lands or properties where the owners are not living.
You need to check the listings posted on different websites, as well as on official records, to ensure that there’s no discrepancy in pricing.
If you ask the real estate agent why the price is this low and they give vague, unclear answers, it’s a big red flag.
Many scammers might also use photos and videos from other properties and pass them off as the ones you wish to buy. In this case, use reverse image searching and visit the site yourself before making any promises to the real estate agent.
How to Conduct a Property Title Search
Conducting a thorough property title search is time-consuming, but it’s worth it. Here are the basic steps:
Collect Property Information
Gather as much information as possible about the property you wish to see or buy. Get its address, pin code, plot number, and the owner’s name. This will help you locate the correct title on your own.
Choose Your Search Method
Next, pick a method of conducting the property title search. You can either search online on the web, visit the local land title office, or even hire a property lawyer to do the work on your behalf. This will depend on the time and budget that you’re willing to spend.
Search Through Official Channels
Every territory will have its land title office site from which you’ll get the information needed. For example, New South Wales has a land title office named NSW Land Registry Services.
Using the property information, especially the plot number that you’ve gathered, search the registry. Pay any fees if needed.
Review the Title Report
Once you have the land title document, it’s time to check the current owner’s details to make sure they match exactly with those of the seller.
Look for any encumbrances, liens, or mortgages. If there are any encumbrances, easements, or liens, conduct additional searches with the help of a property lawyer or real estate firm.
Document Everything
No matter what you find, make sure to document everything neatly and keep it stored in a folder. Make official copies of the title search and all other relevant papers. These will be important during the property transfer process.
Conclusion
If you suspect any sort of fraud while conducting a property title search, immediately stop all financial transactions and re-verify the identities of the seller and the owner. Don’t hesitate to report the incident or get in touch with a lawyer as soon as possible.
Wondering how to get started? Contact us at Title Check, and we’ll guide you through.
