The New Hampshire Attorney General’s Office has issued a consumer alert warning residents about fraudulent schemes targeting property owners through deceptive quitclaim deed practices. This alert highlights the importance of understanding legitimate quitclaim deed uses versus fraudulent schemes designed to steal property or money from unsuspecting homeowners.
As property transfer experts, we believe it’s crucial that property owners understand both the legitimate uses of quitclaim deeds and how to protect themselves from fraudulent schemes that exploit these legal documents.
“We’ve seen a significant increase in consumers contacting us after being approached by scammers claiming to offer property transfer services,” said a spokesperson for Deeds.com, a leading provider of legal document services. “Legitimate quitclaim deed transfers involve careful preparation, proper legal review, and transparency about all terms and consequences. When someone pressures you to sign immediately or promises unrealistic benefits, those are major red flags that indicate potential fraud.”
New Hampshire Attorney General’s Warning
The New Hampshire Department of Justice Consumer Protection Bureau has reported an increase in fraudulent schemes involving quitclaim deeds. According to the alert, scammers are targeting vulnerable property owners with deceptive practices that can result in property loss or financial harm.
The Attorney General’s office specifically warns consumers to be diligent when anyone approaches them about quitclaim deed transfers, particularly unsolicited offers or high-pressure tactics involving property ownership changes.
Common Quitclaim Deed Scams to Avoid
Foreclosure “Rescue” Schemes
How it works: Scammers approach homeowners facing foreclosure, offering to “help” by having the homeowner sign a quitclaim deed to transfer the property temporarily. They promise to transfer it back after resolving the foreclosure.
The reality: Once the property is transferred via quitclaim deed, the homeowner loses all ownership rights. Scammers often sell the property or take out loans against it, leaving the original owner homeless and still responsible for the original mortgage.
Warning signs:
- Promises to “save” your home from foreclosure
- Requests to sign documents immediately without review
- Claims that transferring the deed is temporary or reversible
- Pressure to act quickly without consulting professionals
Equity Skimming Scams
How it works: Fraudsters target elderly or financially distressed homeowners, offering to pay off debts or provide cash in exchange for signing a quitclaim deed. They may promise the homeowner can continue living in the property.
The reality: After obtaining the quitclaim deed, scammers typically evict the former owner, sell the property, or use it as collateral for loans, leaving the victim without their home and often still responsible for original debts.
Warning signs:
- Unsolicited offers to buy your property quickly
- Promises of cash payments for signing over property rights
- Claims you can remain in the home after signing
- Targeting of elderly or financially vulnerable individuals
Title Washing Schemes
How it works: Criminals use fraudulent quitclaim deeds to “wash” stolen or illegally obtained properties by creating false paper trails that make properties appear legitimately owned.
The reality: Property owners may unknowingly become involved in criminal activity or lose legitimate property rights through forged or deceptive quitclaim deeds.
Warning signs:
- Documents that don’t match your property records
- Requests to sign blank or partially completed forms
- Pressure from unknown parties claiming property rights
- Official-looking documents with suspicious origins
False Government Programs
How it works: Scammers create fake government programs claiming to help homeowners reduce property taxes, eliminate mortgages, or qualify for special benefits by signing quitclaim deeds.
The reality: No legitimate government programs require homeowners to sign over property rights through quitclaim deeds to receive benefits.
Warning signs:
- Claims of secret government programs
- Requests for upfront fees to participate in programs
- Official-sounding names that mimic real government agencies
- Promises of too-good-to-be-true benefits
Red Flags: When to Be Suspicious
High-Pressure Tactics
- Demands to sign documents immediately
- Claims that offers expire quickly
- Refusal to allow time for review or consultation
- Threats or intimidation if you don’t comply
Unsolicited Contact
- Door-to-door solicitors offering property deals
- Cold calls about your property
- Mailings that look official but request property transfers
- Social media messages about property opportunities
Suspicious Documentation
- Blank forms or documents with missing information
- Poor quality printing or obvious copying
- Misspelled names or incorrect property descriptions
- Documents without proper notarization requirements
Financial Demands
- Requests for upfront fees or payments
- Demands for personal financial information
- Claims that you must pay to receive benefits
- Requests for banking or credit information
Legitimate Quitclaim Deed Uses vs. Scams
Legitimate Uses Include:
- Family transfers between trusted relatives
- Divorce settlements per court orders
- Adding spouses to property titles
- Trust transfers for estate planning
- Correcting title errors with known parties
Scam Characteristics:
- Strangers approaching with unsolicited offers
- Promises of financial benefits for signing
- Claims of temporary or reversible transfers
- Pressure tactics and immediate deadlines
- Requests for money in exchange for property help
How to Protect Yourself
Before Signing Any Quitclaim Deed
Take time to think: Never sign property transfer documents under pressure. Legitimate transactions allow time for consideration and review.
Consult professionals: Speak with real estate attorneys, tax professionals, or trusted advisors before transferring property rights.
Verify identities: Confirm the legitimacy of anyone requesting property transfers through official channels and independent research.
Research claims: Independently verify any claims about government programs, legal requirements, or financial benefits.
Due Diligence Steps
Review all documents carefully: Understand exactly what you’re signing and what rights you’re transferring.
Get independent legal advice: Consult with attorneys who represent your interests, not those recommended by the other party.
Verify property records: Check current ownership and lien information through official county records.
Understand consequences: Recognize that quitclaim deeds permanently transfer property rights without warranties or protections.
Documentation and Records
Keep detailed records: Maintain copies of all documents, communications, and transactions related to your property.
Document interactions: Record names, dates, and details of anyone approaching you about property transfers.
Secure personal information: Protect Social Security numbers, banking information, and property details from unauthorized access.
Report suspicious activity: Contact authorities if you encounter suspicious property transfer schemes.
What to Do If You’ve Been Targeted
Immediate Steps
Don’t sign anything: Stop all interactions and refuse to sign any documents until you’ve obtained independent legal advice.
Document everything: Save all materials, communications, and contact information from the suspicious parties.
Secure your property: Ensure your property records are accurate and monitor for any unauthorized changes.
Seek professional help: Consult with real estate attorneys who can evaluate your situation and protect your rights.
Reporting Fraud
Contact local authorities: Report suspicious activity to local police and district attorney’s offices.
File complaints: Submit complaints to your state attorney general’s consumer protection division.
Notify federal agencies: Report interstate schemes to the FBI’s Internet Crime Complaint Center or Federal Trade Commission.
Alert credit agencies: Monitor credit reports for unauthorized activity and place fraud alerts if necessary.
State-Specific Protections and Resources
New Hampshire Resources
Attorney General Consumer Protection: The New Hampshire Department of Justice provides consumer protection services and fraud reporting mechanisms.
Legal Aid: New Hampshire Legal Aid offers assistance to qualifying individuals facing property-related legal issues.
Elder Protection: Special programs exist to protect elderly residents from financial exploitation and property fraud.
National Resources
AARP Fraud Watch: Provides education and reporting mechanisms for schemes targeting older adults.
Federal Trade Commission: Offers consumer protection information and fraud reporting services.
FBI Internet Crime Complaint Center: Accepts reports of internet-based property fraud schemes.
Professional Verification Before Property Transfers
When Quitclaim Deeds Are Appropriate
Legitimate quitclaim deed situations typically involve:
- Known, trusted parties with existing relationships
- Clear understanding of all terms and consequences
- Professional guidance from attorneys or title companies
- Time for consideration without pressure or deadlines
- Transparent documentation with complete information
Professional Services to Consider
Real Estate Attorneys: Provide legal advice about property transfers and can identify potential fraud schemes.
Title Companies: Offer title searches, insurance, and professional document preparation services.
Tax Professionals: Advise about tax implications of property transfers and help identify suspicious schemes.
Financial Advisors: Provide guidance about the financial implications of property ownership changes.
Protecting Vulnerable Populations
Elderly Property Owners
Seniors are often targeted for property fraud due to:
- Significant home equity accumulated over decades
- Potential social isolation making them more susceptible to manipulation
- Possible cognitive changes affecting decision-making abilities
- Trusting nature and willingness to help others
Financial Distress Situations
Property owners facing financial difficulties may be vulnerable to:
- Foreclosure rescue scams promising impossible solutions
- Equity skimming schemes offering quick cash
- False refinancing programs requiring property transfers
- Debt elimination scams claiming to remove mortgage obligations
Education and Awareness
Community Protection
Share information: Educate friends, family, and neighbors about quitclaim deed scams and warning signs.
Support vulnerable community members: Check on elderly neighbors and relatives who may be targeted by scammers.
Report suspicious activity: Alert authorities about door-to-door solicitors or suspicious property-related schemes in your area.
Promote professional consultation: Encourage others to seek professional advice before making property transfer decisions.
Ongoing Vigilance
Monitor property records: Regularly check property ownership records for unauthorized changes.
Stay informed: Keep current on common fraud schemes and consumer protection alerts from authorities.
Maintain professional relationships: Develop relationships with trusted real estate professionals before you need their services.
Educate family members: Ensure family members understand property ownership and transfer procedures.
Conclusion
The New Hampshire Attorney General’s consumer alert serves as an important reminder that while quitclaim deeds are legitimate legal tools with appropriate uses, they can also be exploited by criminals seeking to defraud property owners.
Understanding the difference between legitimate quitclaim deed uses and fraudulent schemes is essential for protecting your property and financial interests. Legitimate property transfers involve trusted parties, professional guidance, and adequate time for consideration and review.
If you’re considering any property transfer, whether through a quitclaim deed or other method, take time to understand the implications, consult with qualified professionals, and ensure you’re making informed decisions that protect your interests.
Remember that property ownership is often your most valuable asset. Protecting it requires vigilance, education, and professional guidance when navigating complex legal and financial decisions.
For legitimate property transfer needs, always work with qualified real estate professionals who can ensure proper procedures, legal compliance, and protection of your property rights.
Sources:
- New Hampshire Department of Justice. “Consumer Alert: Attorney General Warns Public to be Diligent Amidst Reports of Quit Claim Deed Scams.” DOJ.nh.gov
- Federal Trade Commission. “Avoiding Foreclosure Scams.” FTC.gov
- AARP Fraud Watch Network. “Property Deed Fraud.” AARP.org
This alert provides general information about property fraud prevention and should not be considered legal advice. If you believe you have been targeted by property fraud or have questions about property transfers, consult with qualified legal professionals in your state.
