Landlords: How Safe are your Property Deeds?

If you are a regular consumer of the news, you likely have seen stories of increasing deed theft in Brooklyn and parts of Queens, particularly in gentrifying areas. As a landlord, how can you prevent this, and what is causing this sudden wave? (Estimates show increases of up to 240% since Covid in NYC) If you aren’t a New Yorker, is this still a concern? Do you need to own multiple rental assets for this to be a worry? Learn more below about this increasing epidemic in the real estate community and how to protect your rental portfolio:

What Exactly is Deed Theft?

Deed theft occurs when someone transfers ownership of your property without your knowledge or consent. Seems like something from a movie, but legally, some loopholes do allow for this to happen. While bureacracy catches up with criminal enterprise (and new laws are being implemented) you will need to stay across these changes to remain informed. As a landlord, your deed is your most fundamental asset. Lose it, and you could lose the property, the rental income, and years of equity.

Under New York Penal Law (amended in July 2024), deed theft is now classified as Grand Larceny, a felony. Country-wide protections vary. Is NYC an exception to the rule? It remains to be seen. Here is a breakdown of how deed theft happens, what to look for, and how to protect your assets:

How Deed Theft Happens

Forgery. Because the City Register's office processes enormous volumes of documents, forged paperwork can slip through. In one well-documented case, a Queens widow on hospice care had her deed stolen through forged documents.
Fraudulent conditions for signature. Some victims sign their own fate, without realizing. A scammer presents documents under the guise of a mortgage refinance, a loan modification, etc, and the property owner unknowingly signs over the deed. Always have any documentation reviewed by a skilled attorney before signing.
Deceased Estates: One of the fastest-growing tactics involves properties where the owner has died. Thieves identify homes with absent or dispersed heirs, forge deeds on behalf of the deceased, and transfer title to shell companies before families even know what has happened.
Shell company purchases. This is a legal gray zone that legislators are currently investigating. They identify properties with multiple partial owners. Once inside the deed, they can use legal mechanisms like partition actions to force a sale of the entire property, displacing long-term residents. These laws are very state-dependent, and title insurance can be a good barrier to entry if you are in a multi-owner title situation.
Equity stripping. By filing a lien against a property they don't own, using forged documents, scammers can effectively steal the equity and leave the original owner saddled with debt they never incurred.
Notary fraud. Increasingly common, although easier to catch.

Who Should be on the Alert?

While any property owner can be victimized, thieves tend to look for:

Properties in gentrifying neighborhoods, where values have surged
Vacant or seemingly abandoned rental properties, especially those with delinquent taxes, utility liens, or lapsed mortgage payments. Some companies can even search for delinquencies and offer steps for acquisition.
Estates of deceased owners where the title has not been promptly transferred.
Elderly or isolated property owners.
Absentee landlords, who are not regularly present, out of state or not in regular touch with tenants.

As a landlord, especially one with multiple properties or properties, you may be at elevated risk precisely because of the distance between you and the day-to-day status of your assets.

How to Protect Your Rentals from Deed Theft

In NYC: Register for free ACRIS alerts— Register all of your NYC properties with the Automated City Register Information System (ACRIS) at nyc.gov/acris. This free program sends you an email or text notification any time a deed, mortgage, or related document is recorded against your property. Most states have free alert systems; make sure to find yours and register. Some can even be county-specific. Simply search “property fraud alert system” and your state name. This will be a free service.
Check your deed at least once a year.
Maintain your property, even if vacant. Idle or neglected properties are prime targets. Unpaid utilities and taxes are an entry for this type of scam.
Keep your mailing address current and make sure the IRS has your latest mailing contact information.
Obtain title insurance. Title insurance is a one-time premium that protects against ownership disputes arising from defects in the title.
Have estate documents in order. Upon death, assets can be passed along smoothly if structured properly; this planning can prevent the interception of the transfer of property. For example, the state of Florida allows for a ladybird deed that passes probate and goes directly to heirs.
Always have an attorney review an offer. If you receive unexpected calls, letters, or visits from individuals or companies offering mortgage help, foreclosure relief, or cash purchases, be aware. Never sign anything related to your property without independent legal review.
If your property is held in an LLC, protect those corporate documents carefully.
Act immediately if you suspect there is an issue. Your state’s attorney general’s office is a great resource to start with.

Some Further General Knowledge for Landlords Regaring Deed Theft

If a fraudulent buyer attempts to evict a tenant based on a forged deed, you have the right under Real Property Actions and Proceedings Law 756-A to ask a housing court judge to pause the eviction for 90 days while you pursue an ownership challenge.

Have tenants pay you directly, this can protect your records and shows consistent ownership. Avoid quitclaim deeds, they require little verification and can be processed quickly. Finally, if you run your properties through an LLC, protect that entity as much as your property titles. Have an attorney review the structure and ensure that your assets are guarded.

Landlords who stay informed, monitor their records, maintain their properties, and keep their legal documents in order are far harder targets. A paid-off asset, in particular, is worth paying extra attention to. Each state has varying laws and protections in place. As a landlord, be sure to know your local laws and take advantage of programs to protect your greatest asset, a home.