I’m dealing with a title fraud situation on a property I purchased in Cleveland. It turns out there was a forged deed in the chain of title prior to my purchase (seller impersonation).
I filed a claim with my title insurance, and they’ve offered to pay the full policy amount (~$37K). However, they’re not giving clear answers about what happens to the title if I accept the payout—specifically whether the defect remains or gets resolved.
The property itself needs work, and ideally I’d like to resell it, but I’m concerned about marketability if the title isn’t properly cleared.
I also paid a $12K wholesaling fee as part of the purchase, which is not currently being addressed.
Questions:
Should I accept the payout or push them to cure the title?
Has anyone dealt with a similar forged deed situation?
Is a quiet title action worth pursuing in parallel?
Any chance of recovering additional costs like assignment fees?
Would really appreciate any guidance or experiences.
1. Your title insurance coverage is what it is. I assume they are giving you a payout for the "loss of value", NOT to cover expenses you have paid. So, I don't think listing expenses is part of a valid argument about how much they should compensate you.
2. I don't think a quiet title could cure a forged deed in the way you believe. I think a quiet title would be used for the real owner to remove the fraudulent deed and every deed after that including your deed to restore clear marketable title FOR THEM!
3. Have you considered doing the leg work to address this title issue yourself with support from your real estate lawyer?
4. Who forged the deed? Why did they do it? How long ago was it done? How did you find out? Is the true owner still alive and what is their position?
5. Have the police been notified?
6. I will give an example I experienced as an agent and then shift it to fit your situation to show how situations like this can sometimes be resolved:
Years ago, I was representing the buyer in a sale when an issue came up on the title search. 40 years prior, a brother and 2 sisters were selling the property, BUT only the brother signed the deed with the sale! So, nobody knew whether the sisters actually intended to sell the property.
Fortunately, the buyers actually realized that they attended church with the sisters who were in their 80s. When contacted, the sister's said they absolutely intended to sell the property 40 years ago and received their proceeds.
So, the sister's simply signed a quit claim deed to cure the defect in the title chain.
If the brother signed his sister's names on the deed, that would be a similar situation as yours AND could have the SAME RESOLUTION if you are lucky!
7. Another thing to look at is what kind of deed you received? If for example, you received a "General Warranty" deed then the person who sold it to you is ALSO responsible for clearing up this defect or compensating you even if the issue existed prior to their ownership.
However, in my experience most deeds I see are "Special Warranty" deeds which only cover defects arising during their ownership not before, but its worth checking your deed to see if you can get compensation from anyone else.
I’m dealing with a title fraud situation on a property I purchased in Cleveland. It turns out there was a forged deed in the chain of title prior to my purchase (seller impersonation).
I filed a claim with my title insurance, and they’ve offered to pay the full policy amount (~$37K). However, they’re not giving clear answers about what happens to the title if I accept the payout—specifically whether the defect remains or gets resolved.
The property itself needs work, and ideally I’d like to resell it, but I’m concerned about marketability if the title isn’t properly cleared.
I also paid a $12K wholesaling fee as part of the purchase, which is not currently being addressed.
Questions:
Should I accept the payout or push them to cure the title?
Has anyone dealt with a similar forged deed situation?
Is a quiet title action worth pursuing in parallel?
Any chance of recovering additional costs like assignment fees?
Would really appreciate any guidance or experiences.
Thanks in advance!
They are paying you off vs. clearing title - so title will not be clear - ie. you will not be able to sell the property. The $12k wholesaling fee is your problem not there problem as they only insure up to the policy amount you provided. So you are not gonna get assignment fees.
I am not an attorney but I do not see how quiet title would help, as this is not an error of incorrect docs etc - if it was fraud I do not see the lawsuit (which quiet title is) granting you the property free and clear since the actual owner got no money for it and you got a title claim payout.
I’m dealing with a title fraud situation on a property I purchased in Cleveland. It turns out there was a forged deed in the chain of title prior to my purchase (seller impersonation).
I filed a claim with my title insurance, and they’ve offered to pay the full policy amount (~$37K). However, they’re not giving clear answers about what happens to the title if I accept the payout—specifically whether the defect remains or gets resolved.
The property itself needs work, and ideally I’d like to resell it, but I’m concerned about marketability if the title isn’t properly cleared.
I also paid a $12K wholesaling fee as part of the purchase, which is not currently being addressed.
Questions:
Should I accept the payout or push them to cure the title?
Has anyone dealt with a similar forged deed situation?
Is a quiet title action worth pursuing in parallel?
Any chance of recovering additional costs like assignment fees?
Would really appreciate any guidance or experiences.
Thanks in advance!
They are paying you off vs. clearing title - so title will not be clear - ie. you will not be able to sell the property. The $12k wholesaling fee is your problem not there problem as they only insure up to the policy amount you provided. So you are not gonna get assignment fees.
I am not an attorney but I do not see how quiet title would help, as this is not an error of incorrect docs etc - if it was fraud I do not see the lawsuit (which quiet title is) granting you the property free and clear since the actual owner got no money for it and you got a title claim payout.
this is the biggest issue i see with folks using wholesalers they have no clue how title insurance works and that the wholesale fee is not covered. When I fund a deal or buy a deal that has a wholesaler fee I PAY for extra coverage to cover the wholesaler fee. Most title companies will tell you they cant or wont do it. you simply have to find one that does there are a few in Ohio that will do it and thats where I close my deals if there is a wholesaler fee greater than 5k I will risk 5k but no more.. I see deals were folks pay 10 20 30k in wholesaler fees and get NO title insurance they simply do not know what they dont know and you only find out when something like this happens.
as for title I believe you will have to get your 37k and then quiet title it to clear the deed I have done that before it works .. Or if its a long term hold and your not borrowing againts it .. just rent it and forgo title and when you go to sell sell it with No warrant of title to the next cash buyer that just wants a long term rental.
One of our members here on BP buys tax foreclosures in SC and it is hard to get title insurance on those he does not care he just pays cash and rents them.
1. Your title insurance coverage is what it is. I assume they are giving you a payout for the "loss of value", NOT to cover expenses you have paid. So, I don't think listing expenses is part of a valid argument about how much they should compensate you.
2. I don't think a quiet title could cure a forged deed in the way you believe. I think a quiet title would be used for the real owner to remove the fraudulent deed and every deed after that including your deed to restore clear marketable title FOR THEM!
3. Have you considered doing the leg work to address this title issue yourself with support from your real estate lawyer?
4. Who forged the deed? Why did they do it? How long ago was it done? How did you find out? Is the true owner still alive and what is their position?
5. Have the police been notified?
6. I will give an example I experienced as an agent and then shift it to fit your situation to show how situations like this can sometimes be resolved:
Years ago, I was representing the buyer in a sale when an issue came up on the title search. 40 years prior, a brother and 2 sisters were selling the property, BUT only the brother signed the deed with the sale! So, nobody knew whether the sisters actually intended to sell the property.
Fortunately, the buyers actually realized that they attended church with the sisters who were in their 80s. When contacted, the sister's said they absolutely intended to sell the property 40 years ago and received their proceeds.
So, the sister's simply signed a quit claim deed to cure the defect in the title chain.
If the brother signed his sister's names on the deed, that would be a similar situation as yours AND could have the SAME RESOLUTION if you are lucky!
7. Another thing to look at is what kind of deed you received? If for example, you received a "General Warranty" deed then the person who sold it to you is ALSO responsible for clearing up this defect or compensating you even if the issue existed prior to their ownership.
However, in my experience most deeds I see are "Special Warranty" deeds which only cover defects arising during their ownership not before, but its worth checking your deed to see if you can get compensation from anyone else.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5mo
further just to explain the wholesaler fee. Title insurance company only offers title insurance on the contract from the sellers sell number not the sellers sell number PLUS wholesaler fee.. Unless buyer specifically ask for and pays for additional title insurance to cover wholesaler fee. its nominal amount for the added insurance.. but again because few know this many escrow companies are not even aware this can happen and when asked just default to NO we cant do it.. But they can you just have to find one that will do it.. there is a larger title/escrow company in Ohio that one wholesaler likes to use and they wont insure their fee so I wont close with them.. wholesaler does not like it but its my risk not theirs once the deal is done wholesaler is not EVER going to give his/her fee back to you because of bad title. Unless you sue and win.
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
5mo
Sue your wholesaler and report them to the state for participating in fraud, this is why need licensed professionals who hold proper insurance dealing with transactions. No the title will not be clear and it likely will not be your property (it is the actual owners property still).
Sue your wholesaler and report them to the state for participating in fraud, this is why need licensed professionals who hold proper insurance dealing with transactions. No the title will not be clear and it likely will not be your property (it is the actual owners property still).
If you read the post, there was nothing to suggest that was the case.
I’m dealing with a title fraud situation on a property I purchased in Cleveland. It turns out there was a forged deed in the chain of title prior to my purchase (seller impersonation).
I filed a claim with my title insurance, and they’ve offered to pay the full policy amount (~$37K). However, they’re not giving clear answers about what happens to the title if I accept the payout—specifically whether the defect remains or gets resolved.
The property itself needs work, and ideally I’d like to resell it, but I’m concerned about marketability if the title isn’t properly cleared.
I also paid a $12K wholesaling fee as part of the purchase, which is not currently being addressed.
Questions:
Should I accept the payout or push them to cure the title?
Has anyone dealt with a similar forged deed situation?
Is a quiet title action worth pursuing in parallel?
Any chance of recovering additional costs like assignment fees?
Would really appreciate any guidance or experiences.
Thanks in advance!
Hi Valeria, sorry you’re dealing with that because forged deed situations are honestly one of the more stressful title issues out there. In general, when a title company offers the policy limits, that usually means they’re choosing to indemnify you rather than fully curing the defect, so the underlying issue in the chain of title can still remain unless they specifically step in to litigate or clear it through a quiet title process themselves. That’s why they’re being a bit vague, because paying out often shifts the resolution burden away from them unless the policy or claim handling explicitly includes cure efforts. Whether you accept or push back usually comes down to your end goal—if you want to resell cleanly, a cleared title is often more valuable than just the payout, even if it takes longer, and that’s where a quiet title action or insurer-led resolution can matter. On the other hand, accepting the payout can make sense if the number adequately compensates you for the risk and delay, but you’d want clarity that you’re still able to pursue additional recovery if there are other covered losses, since assignment fees and ancillary costs are often treated differently under policy language. These cases are very fact and policy specific, so it may also be worth having a real estate attorney review the claim letter and policy so you fully understand what rights you’re giving up before you accept anything.
I’m dealing with a title fraud situation on a property I purchased in Cleveland. It turns out there was a forged deed in the chain of title prior to my purchase (seller impersonation).
I filed a claim with my title insurance, and they’ve offered to pay the full policy amount (~$37K). However, they’re not giving clear answers about what happens to the title if I accept the payout—specifically whether the defect remains or gets resolved.
The property itself needs work, and ideally I’d like to resell it, but I’m concerned about marketability if the title isn’t properly cleared.
I also paid a $12K wholesaling fee as part of the purchase, which is not currently being addressed.
Questions:
Should I accept the payout or push them to cure the title?
Has anyone dealt with a similar forged deed situation?
Is a quiet title action worth pursuing in parallel?
Any chance of recovering additional costs like assignment fees?
Would really appreciate any guidance or experiences.
Thanks in advance!
Hi Valeria, sorry you’re dealing with that because forged deed situations are honestly one of the more stressful title issues out there. In general, when a title company offers the policy limits, that usually means they’re choosing to indemnify you rather than fully curing the defect, so the underlying issue in the chain of title can still remain unless they specifically step in to litigate or clear it through a quiet title process themselves. That’s why they’re being a bit vague, because paying out often shifts the resolution burden away from them unless the policy or claim handling explicitly includes cure efforts. Whether you accept or push back usually comes down to your end goal—if you want to resell cleanly, a cleared title is often more valuable than just the payout, even if it takes longer, and that’s where a quiet title action or insurer-led resolution can matter. On the other hand, accepting the payout can make sense if the number adequately compensates you for the risk and delay, but you’d want clarity that you’re still able to pursue additional recovery if there are other covered losses, since assignment fees and ancillary costs are often treated differently under policy language. These cases are very fact and policy specific, so it may also be worth having a real estate attorney review the claim letter and policy so you fully understand what rights you’re giving up before you accept anything.
U cant force the title insurer to quiet the title.. they have a choice they pick the eaiser and cheaper one for them.. in this case pay the claim
