Protection against title fraud?

Hello,

I have the original certificate of title with my solicitor and a copy has been circulating.

Say if someone has possession of this high resolution copy of the certificate of title what could they do?

To change ownership / transfer, can they basically forge the signatures of each person on title on the appropriate paperwork and submit this with the copy of certificate of title.

What would be the best way to protect my property? Can the titles office provide some sort of alert system for owners when dealings are lodged with them?

Is there any insurance or service out there, similar to how identity theft alerting systems work that can keep you immediately informed of any change in title?

Most people will think I'm nuts, but there's a bit of history i won't get into, I'm just a little concerned and need to cover myself from all angles.

thx
 
I was advised by someone who investigates this type of fraud that the safest way is to place a caveat on your property and have a small mortgage against it rather than full paid out as it becomes a lot harder to sell when a bank is involved.
 
I was advised by someone who investigates this type of fraud that the safest way is to place a caveat on your property and have a small mortgage against it rather than full paid out as it becomes a lot harder to sell when a bank is involved.
Yes exactly

  1. take out a small mortgage on the property (so bank holds the deeds) - bank will have to alert you if someone is trying to discharge the mortgage.
  2. put a caveat on the property (or have someone like your solicitor do it)
  3. Consider title insurance
 
Title insurance costs in the order of about $600 and covers you against this type of loss. There's a few companies that offer it, the one that comes to mind is Stewart Title Limited

http://www.stewartau.com

This won't prevent this type of fraud, but at least you'd get compensated. It also covers a lot of other title related issues (boundary in the wrong place, unauthorised construction, etc). These problems are actually far more common that title fraud.

A caveat can be overcome but is probably enough to act as a deterrent; a mortgage is better. With very clever fraud, both of these can be overcome if the bad guys are determined enough.
 
Thats some fantastic help, thanks guys.

Yes i tried to lodge a caveat, but the titles office rejected it because they failed to understand why anyone would lodge a caveat over there own property. That was their exact response.

I don't want to take out a mortgage because i hate them and don't need it. The annual fees for one would prob be better spent on title insurance, ill have a closer look into that.

Also one of the persons on title has a very bad credit history and I've approached one bank about a small mortgage and they basically verbally didn't approve it. This is unfair, even if i take full ownership of the mortgage, someone else on title that has nothing to do with maintaining the mortgage can apparently ruin it.
 
This is what the titles office has to say about a title alert service


Dear Mr,

I refer to your enquiry below.

I confirm that Queensland?s titles registry offers a "Titles Alert" notification service to customers, which allows a customer (following payment of the associated fee) to receive email notification (to an email address chosen by the customer) when a change of ownership is registered over a nominated title during a nominated period. Customers can request a Titles Alert notification for any number of titles and to cover a minimum period of three months up to one full year.

A dealing search fee (currently $2.85) applies for each title for each three month period or part thereof.
If you would like to place a Titles Alert over your property, you will need to complete the attached form and return it to the titles registry with payment of the prescribed fee. The form can be submitted and the fee paid either:
in person at a titles registry business centre (a full list is available online at https://www.dnrm.qld.gov.au/our-department/contact-us/titles-registry-contacts); or
by post to Brisbane Titles Registry, Department of Natural Resources and Mines, GPO Box 1401, Brisbane QLD 4001 (with payment by cheque or money order made payable to Department of Natural Resources and Mines).
 
If you are concerned about a high resolution copy of the existing certificate of title, you can cancel the existing CT and request a new one. The new CT will have a different number, meaning the high resolution copy cannot be used.

You have correctly identified the other measures that can be taken. These are:

1. lodge a caveat as owner;
2. lodge a mortgage; and
3. subscribe to the Titles Registry update service.

You should speak with the Titles Registry further about the rejection of your caveat to determine the reason for this. Section 122(1)(c) of the Land Title Act 1994 (Qld) allows the registered owner to lodge a non-lapsing caveat over their property. See http://www5.austlii.edu.au/au/legis/qld/consol_act/lta1994109/s122.html.
 
Looking at that site I'm not feeling very confident.

Its incredibly poorly formatted / developed and they don't even quote an ABN / ACN.

I can assure you they're not a micro business operating out of the spare bedroom. I've met with their Melbourne staff (they have multiple offices) and dealt with people in Perth. Most conveyancers will have heard of them.

If you want a poorly formatted and unusable website, try www.asic.gov.au or www.ato.gov.au. Microsoft Australia's website doesn't have an ABN or ACN on it either.

I'm not advocating them because they give me a referral fee (they don't give me anything). I do think their product is worth considering.
 
I am not sure if there is any legal basis for a registered owner and equitable owner lodging a caveat. A caveat just notifies the world that the caveator has an interest in the property. Title does this too!.

It shoudnt be possible and even if you could lodge one why would you want to? If someone is going to forge transfer documents then they coulld surely forget a discharge of caveat document too.

T0ne - a mortgage could be lodged by a non bank too. e.g. a related party.
 
Interesting. What do you mean a related party exactly? Simply any random small lender thats a business?

A spouse, sibling, trustee of a family trust etc.

ps i note JDM has pointed out that an owner can lodge a caveat over their own property in Qld.
 
Hello,

I have the original certificate of title with my solicitor and a copy has been circulating.

Say if someone has possession of this high resolution copy of the certificate of title what could they do?

To change ownership / transfer, can they basically forge the signatures of each person on title on the appropriate paperwork and submit this with the copy of certificate of title.

What would be the best way to protect my property? Can the titles office provide some sort of alert system for owners when dealings are lodged with them?

Is there any insurance or service out there, similar to how identity theft alerting systems work that can keep you immediately informed of any change in title?

Most people will think I'm nuts, but there's a bit of history i won't get into, I'm just a little concerned and need to cover myself from all angles.

thx
I think you are worrying a bit too much. Original deeds have a watermark which is hard to replicate.
Caveat with consent so it doesn't lapse is the way to go IMHO. Not a big fan of giving banks security disproportionate to their loan.

Can you tell us about the "history" involved?
 
I think you are worrying a bit too much. Original deeds have a watermark which is hard to replicate.
Caveat with consent so it doesn't lapse is the way to go IMHO. Not a big fan of giving banks security disproportionate to their loan.

Can you tell us about the "history" involved?

Does this watermark distort at all when the CT is copied?

Let me assure you that I'm not worrying too much.

A particular individual has targeted my property/assets previously and has forged transfer documents in the past which have been approved by the titles office.

Can you understand why I'm being paranoid now?
 
The argument that a caveat can be removed through fraud also applies to a mortgage. There is nothing stopping the same party fraudulenty executing a Form 3 Release of Mortgage.

A caveat lodged by the registered owner does not require consent and does not lapse in Queensland.

The best protection would be to:

1. Cancel and request a new certificate of title;
2. Register a caveat as the registered owner; and
3. Subscribe to the titles update service (to inform you if the caveat is farudulently removed).

Note that fraud is an exception to indefensibility. This means that you can usually have the property transferred back into your name if fraud has occured (exceptions apply, such as if the property has been sold to an innocent third party for valuable consideration). This is why the title alerts are very important so that you can have the fraud remedied before there is an innocent third party mortgagee or buyer involved.
 
Does this watermark distort at all when the CT is copied?

Let me assure you that I'm not worrying too much.

A particular individual has targeted my property/assets previously and has forged transfer documents in the past which have been approved by the titles office.

Can you understand why I'm being paranoid now?

Nothing wrong with paranoia - as a solicitor I eat and breathe it daily. If this person has done it before have you had the police involved?

Watermark may come up on a good scanner/printer but will be obvious (and indeed proof of fraud) once discovered.

If someone is legally "stalking" and you knew who it was I would go on the offensive.
I've dealt with one hardcore professional fraudster in my career but with persistence they can be shut down. He did stir after I pointed the coppers in the right direction.
 
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