Property transactions in Texas can be exciting, but they also come with risks. One serious issue that property owners, investors, and real estate professionals must watch for is forged property deeds. A person who falsifies property documents can effectively steal someone’s land or home. Texas law provides strong protections against this type of fraud, but understanding how forgery works in real estate transactions is crucial to safeguarding your investments. Whether you are buying, selling, or managing a property, knowing the legal implications and your options can help you avoid major financial losses.
In This Article:
The Legal Definition of Forgery in Texas Real Estate
What Texas Law Says About Forged Property Deeds
Forgery in real estate is defined under Texas Penal Code § 32.21. It occurs when someone intentionally alters, makes, or signs a document with the goal of deceiving others. In property transactions, this can include:
- Creating a fake deed to fraudulently transfer ownership to another person.
- Faking a property owner’s signature on a legal document.
- Altering an existing deed to remove or add names without consent.
- Submitting a fraudulent deed to the county recorder’s office.
If a deed has been forged, it is legally invalid, and the rightful property owner has the right to challenge it in court. However, undoing a fraudulent real estate transaction can take time and legal intervention.
Consequences of Property Title Fraud in Texas
Criminal Penalties for Forged Deeds
In Texas, property forgery is considered a felony offense. The severity of the punishment depends on the circumstances, but consequences can include:
- Prison sentences of up to 10 years.
- Fines of up to $10,000.
- Increased penalties if the victim is elderly or disabled.
Under Texas Penal Code § 32.46, fraudulent real estate transactions that target vulnerable individuals carry even harsher penalties. The law aims to protect homeowners from scams that can leave them without legal ownership of their property.
Civil Remedies for Victims of Forgery
Aside from criminal penalties, victims of real estate fraud have legal options under the Texas Civil Practices and Remedies Code. If a forged deed is discovered, property owners can:
- File a lawsuit to declare the forged deed invalid.
- Seek a court order restoring legal ownership.
- Demand financial compensation for losses caused by the fraud.
If a fraudulent lien or forged property deed is filed with the county, Texas Property Code § 12.002 allows victims to take civil action against the responsible party. Courts can impose harsh penalties, including fines and damages.
The Role of Notary Fraud in Real Estate Scams
How Notary Publics Can Be Involved
Property transactions require notarized signatures to verify their validity. However, corrupt notaries may assist in fraudulent activities, which is covered under Texas Government Code § 406.009. Notary fraud can include:
- Signing or stamping documents without witnessing the signature.
- Knowingly verifying a forged deed.
- Falsifying records to assist in fraudulent transfers.
Since notaries play a key role in property sales, a fraudulent notary can help fraudulent transactions appear legitimate. Texas law treats these acts as criminal offenses with serious consequences.
How to Protect Yourself from Forged Property Deeds
Texas’s Notice-Based Recording System
One of the best ways to prevent property fraud is to ensure all real estate documents are recorded with the county. Texas follows a notice-based system, which means:
- A properly recorded deed legally takes priority over unrecorded documents.
- Forged or fraudulent deeds can be challenged in court.
- Property owners can track ownership changes to detect suspicious activity.
Recording property transactions as soon as they occur provides an added layer of protection against fraud.
Steps to Report Real Estate Forgery
If you suspect property title fraud in Texas, taking quick action is crucial. You should:
- Report the forged deed to your county’s deed records office.
- Notify local law enforcement and file a criminal complaint.
- Contact the Texas Attorney General’s office for legal assistance.
- Reach out to the Texas Real Estate Commission if a fraudulent deal involves a licensed professional.
The faster a fraudulent transaction is reported, the easier it is to reverse.
Legal Actions Available to Victims
Quiet Title Lawsuits to Remove a Fake Deed
A quiet title lawsuit is a legal method of resolving real estate title disputes in Texas. It allows a court to:
- Confirm the rightful property owner.
- Invalidate a fraudulent deed.
- Prevent further fraudulent transfers.
These lawsuits clear up ownership confusion and establish legal property rights.
Injunctive Relief to Stop Fraudulent Property Transfers
Courts have the power to issue an injunction. This is a strong legal tool that can stop a fraudulent sale. It also helps prevent further harm to the rightful owner of the property. This legal tool is important for protecting victims. It stops fraudsters from selling or mortgaging stolen property. This helps keep the rightful owner’s rights and assets safe.
Conclusion
Forgery in real estate is a serious issue, but Texas law provides multiple tools to combat it. Whether you are a homeowner, investor, or buyer, understanding how to detect and prevent property title fraud can protect your assets. If you believe someone has filed a forged property deed in Texas involving your land, taking legal action quickly is the best step.
Navigating property fraud cases requires a strong understanding of real estate laws. The experienced team at Daughtrey Law Firm has guided many Texans through complex real estate disputes and ownership issues. If you need help addressing a fraudulent property transaction, consulting with knowledgeable legal professionals can make all the difference.
