In recent news, a nefarious company attempted to foreclose on Elvis Presley's former Graceland home in Memphis, Tennessee. The fraudulent investment and private lending company claimed that Lisa Marie Presley, Elvis’s only daughter, used Graceland as collateral to borrow money and failed to repay the loan. The fraudulent company forged her signature on legal documents, and eventually claimed the title to Graceland. After filing suit alleging fraud, the court halted the foreclosure, but not all attempts to defraud a landowner are as easily noticed and litigated.
These cases are not unique to only the rich and famous; it can, and does occur in communities such as Washtenaw County. Information about family members can be easily accessible online, especially when sources of personal information such as obituaries are published. So-called "obituary pirates" collect information to fraudulently file a deed for a decedent or apply for a new bank account. Properties of recently deceased or out-of-town individuals are particularly vulnerable, especially if the real estate must go through the probate process, which could take 6-10 weeks to obtain authority over your decedent's estate.
When recording deeds in Michigan, MCL 565.201 provides the register of deeds with recording provisions (e.g. margin size, paper size, color of ink, notary requirement, font size, page size, address information, drafting information, etc.). Michigan statutes don’t require any register of deeds to be an arbiter of fact. MCL 556.201 specifically provides that “[a]n instrument that complies with the provisions of the act and any other act relating to the recording of instruments shall not be rejected for recording because of the content of the instrument.” Consequently, it is not a duty of the register of deeds to compare signatures or confirm/verify the notary information or signature. Even though MCL 565.201 requires that certain provisions be met including that deeds are notarized, and the sole purpose of a notary is to prevent fraud, it’s no different than any other statute. It can be violated by fraudulent actions.
Fraudulent deeds can only be handled and resolved by a court order which can take several months and be costly for the property owner to re-gain its lawful title. Usually there’s not coverage available through a homeowner’s insurance policy that applies to this type of fraud.
Washtenaw County does have a monitoring program, with information available here: https://ssclerk.ewashtenaw.org/web/fraudGuard/disclaimerPage.
If you’re a victim of a fake deed, real estate attorneys in Ann Arbor at Pear Sperling Eggan & Daniels, P.C. are experienced in recovering real estate to the rightful owners using handwriting experts and other evidentiary means to prove ownership.
It can be very complicated and tricky if you don’t know how to navigate these types of situations. Our competent Real Estate attorneys in Ann Arbor at Pear Sperling Eggan & Daniels, PC, can help you understand this process and file your case. Contact us today! 734-665-4441
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