Deed Scams: A Growing Threat to California Business Owners

If you own commercial property in California, deed scams are a risk you can’t afford to ignore. These schemes involve fraudsters forging signatures and filing fake deeds with county recorder offices, effectively stealing ownership of your property. For business owners, the impact can mean loss of equity, disruption of operations, and costly legal battles.

Why Businesses Are Targets

Commercial properties often have high value and may sit vacant during renovations or seasonal closures, making them prime targets for scammers. Criminals exploit California’s open recording system, where any document meeting basic requirements must be accepted by the county recorder. Once a fraudulent deed is recorded, the scammer can sell the property or take out loans against it, leaving the rightful owner to fight for recovery.

Warning Signs for Business Owners

You stop receiving property tax bills or notices.
Unexpected liens or loans appear on your property.
You receive foreclosure or eviction notices for loans you never authorized.
Title searches reveal unfamiliar names on your deed.

California Legal Framework

Under California Penal Code §115, filing a false or forged document with a public office is a felony punishable by up to three years in prison and fines up to $10,000. Victims can also pursue civil remedies to “quiet title” and restore ownership.

How to Protect Your Business

Enroll in County Alert Programs: Many California counties—including Los Angeles, Riverside, and Fresno—offer free notification services when documents are recorded against your property. Sign up to receive immediate alerts.
Monitor Public Records: Regularly check your property’s title through the county recorder’s office or hire a title monitoring service.
Use Title Insurance: Ensure your policy covers fraud-related claims.
Secure Vacant Properties: Scammers often target empty lots or buildings. Maintain visibility and security.
Verify All Transactions: Never bypass official channels like escrow or title companies, even for seemingly simple transfers.

What to Do If You Suspect Fraud

Act fast. Contact local law enforcement, the District Attorney’s Real Estate Fraud Unit, and the California Department of Real Estate. You may need to file a civil action to clear your title and prevent further damage.