As a real estate broker, your clients look to you for guidance during one of the biggest financial transactions of their lives. In today’s digital world, concerns about title fraud are on the rise, and one question we hear often is: “Should I recommend Title Lock or similar products to my clients?”
Before advising your clients, it’s important to understand what those products actually do—and, just as importantly, what they don’t do.
What Title Lock Subscription Products Are — And Are Not
Title Lock and similar products are marketed as a safeguard against property title fraud. They are not the same as title insurance, and it does not actually prevent fraud.
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Title Insurance: A one-time purchase that protects buyers and lenders from legitimate ownership claims or problems with the property’s title that existed before the purchase date.
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Title Lock: A subscription-based monitoring service. It alerts property owners after a deed has been recorded transferring the property out of their name.
In other words, Title Lock is a “lag measure”. By the time the notification comes, the damage has already been done.
Things You Should Know
How Title Fraud Happens
- A scammer forges the homeowner’s signature and files a deed transferring ownership.
- They use the property to take out loans or even sell it without the owner’s knowledge.
- Homeowners often don’t discover the problem until foreclosure notices or unpaid tax bills show up.
The scary part? Title Lock and similar products don’t prevent any of this—it just sends an alert after the fraudulent transfer is recorded. At that point, your clients are already in a legal battle to prove ownership.
Better Ways to Protect Your Clients
Instead of relying on subscription-based monitoring services, encourage your clients to take proactive measures:
1. Rely on Title Insurance
Title insurance is the best first line of defense. It protects your client’s ownership rights from issues tied to the property’s past and provides legal and financial support if a dispute arises.
2. Call Your Title Company
If your clients are worried about title fraud, they don’t need to pay for Title Lock. Encourage them to call us directly. We can:
- Check the current status of their property title.
- Confirm that no unauthorized transfers have occurred.
- Provide guidance and resources for added protection.
3. Verify with the County Recorder
Homeowners can regularly check county records to ensure no unexpected transfers have taken place. Your title company can walk them through this process if needed.
4. Protect Personal Information
Most fraud starts with stolen personal data. Remind your clients to:
- Shred sensitive documents.
- Safeguard Social Security numbers and financial statements.
- Monitor credit reports for suspicious activity.
Immediate Steps if Fraud Is Suspected
If a client believes they’ve been targeted:
- Contact their title company immediately.
- Report the issue to the county recorder’s office.
- File a complaint with the Federal Trade Commission (FTC).
- Place a fraud alert or credit freeze with major credit bureaus.
Final Thoughts
While Title Lock and other products may sound reassuring, they are not a preventative tool—it’s a notification service that arrives too late to stop fraud. As a real estate professional, the best suggestion you can give your clients is to:
- Invest in title insurance at closing.
- Be careful with personal and financial information.
- Call your trusted title company for real-time answers and support.
By guiding clients toward proactive solutions and connecting them with experts, you reinforce your value as their trusted broker and help safeguard their property rights for the long term.
Questions? Give us a call!
References
- Federal Trade Commission (FTC) https://consumer.ftc.gov
- Maryland Attorney General https://www.marylandattorneygeneral.gov
- EWJ Law https://ewjjlaw.com
- Tressler Associates https://tresslerassociates.com
- Kiplinger https://www.kiplinger.com
- New York Post https://nypost.com