Combating Deed Fraud

Many Michiganders have heard stories about homeowners receiving sudden news that someone recorded a deed falsely claiming ownership of their beloved home. Historically, this crime has especially affected older homeowners or prospective buyers not using conventional financing and foregoing title insurance. The problem’s persistence has led the Michigan legislature to introduce new penalties for wrongdoers. There are also proactive steps you can take to limit the chance that you may fall victim next.

As of April 2025, there are increased penalties for those found guilty of deed fraud in Michigan. Individuals falsifying real estate conveyances may pay a fine of up to $5,000 and face up to three years’ imprisonment. A stiffer punishment of up to ten years’ imprisonment is also possible for those who record a fraudulent deed with a Register of Deeds in Michigan.

If the expanded penalties are not enough to ward off future perpetrators, the statute also permits a Register of Deeds in Michigan to share written evidence of wrongdoing with its local county prosecutor. If you suspect deed fraud, reaching out to your Register of Deeds may be a productive first step towards regaining clear ownership before resorting to more costly approaches.

For prospective buyers in Michigan worried about acquiring a property that may be subject to a falsified recording, securing title insurance will help ensure you take clear title. The expense of title insurance may go a long way to easing concerns, even if you are pursuing a non-traditional purchase that does not require title insurance.

If you already own a home, you should know that most counties in Michigan provide a free alert service that will automatically notify you if a document affecting your title is recorded with the county. You can check this website to see if your county provides an alert service.

Have questions about protecting your property or navigating a real estate transaction? Wright Beamer can help. Give us a call at 248.477.6300.