“Owning a home is part of the American Dream for many people,” Kennedy said. “And we’re trying to protect that. We’re constantly thinking about safeguards we can put in place.”
Kennedy, who is in her first term in the recorder’s office, said she entered into her new role this year with the recorder’s office having 50 active complaints related to deed fraud.
Deeds must be notarized and filed with a county auditor’s office and recorder’s office to record the transfer of property. Quitclaim deeds transfer property from one entity to another without a sale taking place. This kind of deed is typically used by relatives or spouses to transfer property.
Oftentimes, no money is involved in the transaction, no title search is completed to verify ownership of the property and no title insurance is issued. But quitclaim deeds need to be notarized by an active, legitimate notary and filed with county offices to log the transfer of property.
The Montgomery County Auditor’s Office is on pace to authorize roughly 20,000 property transfers by the end of this year. Since the recorder’s office implemented its pre-check program, nearly 2,000 quitclaim deeds have come into the auditor’s office.
“What we’re trying to do with the recorder’s office is be proactive and try to take some steps to prevent this,” said Montgomery County Auditor Karl Keith.
Under the fraud pre-check policy, all quitclaim deeds must be submitted to the recorder’s office for an official review before a property can be transferred by the auditor’s office. The quitclaim deed will then be returned to the recorder’s office for official recording.
As a part of this pre-check, the recorder’s office confirms that all parties involved with the property have signed the deed and ensures the deed has been notarized by an active notary who is in good standing with the Ohio Secretary of State, Kennedy said.
Her office this year has forwarded the names of nine notaries who didn’t meet this criteria to the Ohio Secretary of State’s Office.
Recorders also confirm that no outstanding fraud complaints are linked to the properties, Kennedy said. Her office also employs four in-house notaries who are available during business hours.
Nationally, divisions of the FBI have warned citizens of property theft that has occurred through the filing of fraudulent quitclaim deeds.
Quitclaim deed fraud has led to criminal convictions in Montgomery County this year. Two Huber Heights residents linked to the limited liability corporation Love Has Homes were sentenced in June on charges related to a quitclaim deed fraud scheme.
Kennedy said property owners can sign up for the Fraud Alert Notification System (FANS). FANS allows residents to receive an email, a letter or both whenever a deed, a mortgage or a lien is filed on parcels enrolled in the service. Residents can enroll on the county recorder’s website or at its office.
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