BIC TIP #1237: Do Not Trust the Deed

It sounds backwards, but it is true: it is surprisingly easy to record a fraudulent deed. Stephen Long wants North Carolina brokers to understand that the public record is not a guarantee, and that fraud in our industry is running rampant.

The Register of Deeds Is Not the Fraud Police

Most people assume that if a deed made it into the public record, somebody checked it. Not quite. According to Stephen, registers of deeds across North Carolina generally must record a document as long as it meets their standard requirements, such as margins, signatures, and the other formatting items they need to see.

Their job is to record what is presented for recording, not to judge whether it should be recorded. Even if a document looks suspicious, the office is generally not in a position to refuse it on that basis.

Why This Matters to You

Fraudsters know how the system works. A fake deed can quietly sit in the public record and make a scammer look like the rightful owner on paper. If you pull up the record, see their name, and stop there, you may be helping a criminal sell a property that does not belong to them.

It seems like the industry should be able to get ahead of this problem. In practice, it is still on brokers, attorneys, and title professionals to stay alert and ask questions.

Double Check, Then Check Again

Always review the public record, but do not rely on it alone. Look at the chain of title for anything unusual, like a recent transfer that does not make sense or a deed that seems out of place. Verify identity when you are dealing with an owner you have never met.

If anything raises an eyebrow, bring in your broker-in-charge and the closing attorney early. It is far easier to pause a transaction than to unwind one.

The Practical Takeaway

A recorded deed is a piece of information, not a stamp of approval. The register of deeds records documents that meet its requirements, fraudulent or not. Be diligent, verify ownership through more than one source, and never treat the public record as the final word on who really owns a property.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.