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Title Theft in Nevada. What Nevada Homeowners Need to Know.

Writer's picture: Joseph DragonJoseph Dragon

Updated: Jan 23

Believe it or not, someone can steal (or at least attempt to steal) your home. Huh? Car theft is easy to understand because a car has wheels, so a thief can move it. But your house is bolted to a foundation; how can someone steal it?


It is possible due to two legal doctrines: Race Notice and Bona Fide Purchaser. Let's break it down.


You may remember that when you purchased your home, it proceeded to escrow, which usually takes 30-60 days from the time you agreed to purchase to the time you received the keys. Although escrow serves many purposes, the primary purpose is to ensure the person you purchased your home from actually owns the home (i.e., the seller has good title to the home).


During escrow, the escrow company reviews the home’s property records. These records are filed or recorded with the county recorder’s office for the county where the home is located. You can find more information from the Clark County Recorder’s office or the Washoe County Recorder’s office.


The escrow company makes sure that the seller is in the correct chain of title. Here’s how it works: Suppose you bought your house from Mr. Smith. The recorder’s office should show that the home is deeded to Mr. Smith. Then the escrow company needs to determine when Mr. Smith bought it. Suppose Mr. Smith bought it from Ms. Anderson in 1998, and Ms. Anderson bought it from Farmer Joe in 1968. Farmer Joe inherited it from his father in 1965, who inherited it from his father in 1929, who was the original purchaser of the home/land from the U.S. government in 1889. Thus, the chain of title shows who owned the property traced all the way back to when the first deed was issued to the date of your purchase. If everything checks out, the escrow company will ensure that Mr. Smith does have clean title and close escrow, transferring title to you.


But here’s the thing: A “title” is nothing more than a piece of paper stating that Mr. Smith is transferring ownership to you with both Mr. Smith’s and your signatures on it. When we create titles for our clients, we simply draft them in Word and ensure the formalities are present. The two parties then sign the title, and it is recorded on the property. The recorder’s office’s only job is to accept these recordations. While the recorder’s office does look for signs of fraud, that is not their responsibility.


Thus, many times fraudulent titles can be recorded. Suppose you bought your house five years ago. Then, Thief Bob reviews your property records online. Thief Bob then forges your signature on a fraudulent deed that says you agreed to sell your property to Bob, and you are completely unaware that Bob has done this. According to the public documents, it now appears that Bob, not you, owns the property.


Then some time passes, and Thief Bob offers to sell your home to innocent Julie. Julie pays Thief Bob market price for the house. Thief Bob then provides the title to Julie, who shows up at your house claiming to own it and asks you to leave, leaving both Julie and you confused.


This is where things can get messy. Julie believes she owns the house and then sues you for quiet title (a court order that Julie owns the house). While the issue is not black and white, Julie could invoke the legal doctrine of Bona Fide Purchaser. In simple terms, Julie may be able to obtain a court order that she owns the house if she can prove (1) that she did not know that you, not Bob, owned the house and (2) that she paid value for the property without knowledge of the fraud.


To protect yourself from title fraud, it’s essential to monitor your property records regularly. Services like TitleLock can help you keep an eye on any changes to your property records. Additionally, consider purchasing title insurance, which can provide a layer of protection against potential title defects or fraud. For more i



nformation on title insurance, visit the American Land Title Association.

 

By staying vigilant and understanding the legal doctrines at play, you can better protect your home from potential theft and fraud.

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