EquityProtect report shows expanding deed theft protections, room for improvement

EquityProtect has released the second edition of its quarterly Property Protection Scorecard, finding that more states adopted deed theft legislation during the second quarter of 2026, although most U.S. homeowners still lack state-specific legal protections against the crime.

According to the report, Virginia, California and Alabama enacted new deed theft laws during the quarter, bringing the total number of states with dedicated deed theft statutes to 10.

EquityProtect said 29 states still do not have laws specifically addressing deed theft, leaving property owners to rely on broader fraud and forgery statutes after a fraudulent deed has been recorded.

“The good news is that more states are taking deed theft seriously, and this quarter proves it,” said Ryan Marshall, CEO of EquityProtect. “But our findings reinforce a critical truth: Legislation is an important step, but it is not protection. Most laws punish deed theft after it happens, they do not prevent it. Property owners need preventative safeguards, not just legal remedies after the damage is done.”

Fraud losses continue to mount

Findings cite FBI data showing more than 58,000 victims reported real estate fraud between 2019 and 2023, resulting in more than $1.3 billion in losses. In 2024, the FBI received 9,359 real estate fraud complaints totaling $173.6 million in losses.

EquityProtect also reported that seniors accounted for 44% of reported financial losses despite representing 19% of victims.

The company said victims often spend between $50,000 and $150,000 in legal fees to restore ownership after a fraudulent deed is recorded, while one in three title companies experienced at least one seller impersonation fraud attempt in 2024.

States adopt new safeguards

Among the legislative developments highlighted in the report, Alabama enacted the Property Protection Act of 2026 while Virginia adopted seller identity verification requirements for settlement agents and strengthened notary safeguards.

California approved SB 255 requiring statewide recorder notification by 2027 and Maryland established criminal penalties for fraudulent property conveyances as well as a Deed Fraud Prevention Grant Fund.

The report also found that several states are shifting toward preventive measures, including identity verification requirements and reviews of suspicious filings before deeds are recorded.

Protection gaps remain

Despite those developments, EquityProtect said stronger criminal penalties alone are unlikely to prevent deed theft because county recorders generally are required to record documents that meet statutory filing requirements without verifying identities in real time.

According to the report, 15 states remain in study or monitoring phases without dedicated deed theft statutes, while Alaska, Delaware, the District of Columbia, Mississippi, Montana, New Mexico, Vermont and Wyoming have not taken legislative action on deed theft.

The company also said property alert programs notify homeowners only after documents have been recorded and cannot prevent fraudulent filings.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.