Minnesota Land and Title Fraud: How to Protect Your Home

You’ve probably seen the TV ads for “title lock” services. Land and title fraud is real, it’s financially devastating, and we’ve seen attempts at our own brokerage. I sat down with Lisa McKenzie of Stone Arch Title to talk about how it works, the red flags, and how to protect yourself, mostly for free.

How common is it?

Lisa cited industry figures that about half of real estate professionals were affected by some form of fraud attempt in 2024 (hacked email, intercepted wires and more), and that about 28% of title companies saw seller-impersonation attempts. The good news: it’s very preventable.

How seller-impersonation fraud works

Here’s a typical story:

1. Someone wants to list a property, often vacant land or an empty home, but you’ve never met them.
2. They’ll only communicate by email, text or WhatsApp, saying they’re out of the country for a few weeks.
3. They want to list it below market and close fast, ideally with a cash buyer.
4. They push to use their own “title company”, which may be fake, in on the scheme, or just lax about verifying identities.

Each of those is a red flag, and together they’re a siren. Reputable title companies verify identity before closing; Stone Arch uses a service called CertifID that can confirm someone’s identity in 5 to 10 minutes and also delivers wire instructions securely.

Even famous properties get targeted. In 2024, someone tried to use forged documents to claim Graceland, Elvis Presley’s home, and the Spelling Manor in Los Angeles had a pending sale derailed by a fraud claim. Both were eventually sorted out, but it took courts a long time. That’s why prevention matters.

Protect yourself for free

• Sign up for your county’s property fraud alert. Many Minnesota counties let you register with the recorder’s office to be notified if any document is recorded against your name or property ID (PID). You don’t need to pay $19.95 a month for a “title lock” service.
• Keep your contact information current with the county, using a personal email you’ll keep (not a work address) without heavy filters.
• Watch vacant land and empty rentals closely. Fraudsters target them more than occupied homes.
• Vet the people you work with. Check that your agent is licensed, and use ALTA’s tools to confirm a title company, escrow officer and underwriter are legitimate. Get referrals.

Why owner’s title insurance matters

When you buy with a mortgage, the lender’s title policy is required. The owner’s policy is optional, and we encourage every buyer, cash or financed, to get one. It’s a one-time fee that protects you as long as you own the home, and for the value it protects, it’s one of the least expensive insurance policies you’ll ever buy.

Real examples Lisa shared:

• A wrong legal description that would have taken a costly quiet-title action was fixed by the title company at no cost to the owner.
• An owner discovered about $7,000 in tax liens from the prior owners that were filed during the sale; the owner’s policy covered it.
• Judgments, bankruptcies and mechanic’s liens (from unpaid contractors) can surface after closing, and the owner’s policy covers many of these.

You’ll probably never use it, but if a fraudulent deed or large lien shows up, it can be the difference between a phone call and losing the property.

Wire fraud

Minnesota purchase agreements include wire fraud warnings for a reason. Lisa had seen about four attempts in six months among the companies she works with. Fraudsters get into an email account, wait, then send fake wire instructions with a number or two changed, and once the money’s gone, it usually can’t be recovered.

• A good title company sends wire instructions once, through a secure link, and tells you they’re the only ones you’ll get. They never email wire instructions.
• Always call your title company at a number you already know to confirm before wiring.
• Turn on two-factor authentication everywhere, lock your phone, set a PIN on your SIM card, and use a password manager with unique passwords for every account.

If something sounds too good to be true, it probably is. Questions about a sale or purchase? Reach out to our team, and see what to know when selling in Minnesota.