PORTLAND (WGME) — Maine has spent the past two years grappling with a rise in deed fraud schemes.
The CBS13 I-Team first began investigating after an elderly man didn’t receive his tax bill and learned someone had transferred his property without his knowledge.
Since then, multiple landowners have come forward saying something similar almost happened to them. Our reporting has uncovered for-sale signs posted on land, fake driver’s licenses and signed agreements to transfer deeds; all tied to scam attempts.
Maine has spent the past two years grappling with a rise in deed fraud schemes. (The Nathanson family)
The growing pattern prompted a state commission to issue new recommendations aimed at stopping the fraud.
Landowners say scam nearly cost them their property
Two summers ago, Cheryl and Ralph Nathanson learned their land on Little Sebago Lake had been put up for sale online.
“We could have lost our property,” Cheryl Nathanson said.
The Nathansons, who live in Connecticut, were stunned when they discovered a fraudulent listing for their Maine plot.
“We notified the police and they said they can take a report on it but that there’s nothing they could really do,” Ralph Nathanson said.
Police told them it was a classic case of deed fraud: scammers posing as property owners, listing land they don’t own and disappearing with the cash.
The couple was advised to sign up for property alerts through the Cumberland County Registry of Deeds, but quickly learned those alerts offered little protection.
“You can register for the deed fraud but it only informs you, by email, after the deed has been transferred. So it’s basically worthless,” Ralph Nathanson said.
A realtor lists their property…. Again
The following summer, the Nathansons discovered a real estate sign had been placed on their land.
“I was notified by a neighbor that there was a for-sale sign, a realtor for-sale sign, on our land,” Ralph Nathanson said.
A realtor from Old Orchard Beach had unknowingly entered into an agreement with someone impersonating the couple.
“Some of the information was correct, some of it wasn’t. You can get anything off of Google,” Cheryl Nathanson said.
Ralph Nathanson remembers confronting the agent.
“You are selling my property and I’m not selling the property,” Ralph Nathanson said. “The phone went silent.”
Despite the ordeal, the couple believes they were lucky to have seen the sign, knowing how bad these schemes can get.
State commission concludes work on deed fraud
“Currently, you all might be landowners and your land might be at risk, and you might not know right now that somebody has sold your land,” Jane Towle with the Real Estate Commission said, during the final meeting of the Deed Fraud Commission.
This fall, a state commission of stakeholders convened to examine ways to prevent deed fraud in Maine.
The Nathansons urged the commission to go beyond awareness campaigns.
CBS13 I-Team Reporter Stephanie Grindley: “You think the state should act beyond just awareness?”
Cheryl Nathanson: “100%.”
Ralph Nathanson: “Absolutely. I think the state of Maine has a responsibility to protect landowners.
But not everyone in the meeting agreed on the scope of the problem.
Attorney General calls deed fraud a low-priority scam
In the final meeting, Attorney General Aaron Frey remained staunch in his skepticism, saying complaints of deed fraud are still relatively rare.
“What we’re seeing for people getting hurt and losing money, this would probably not be the thing I want to highlight over other scams that are happening right now that are actually costing people their retirement savings,” Frey said.
Sen. Henry Ingwersen of York, who spearheaded the commission, sat down with the I-Team following the final meeting.
Grindley: “During the meeting, I did hear the Attorney General essentially call this a non-issue. His office isn’t getting complaints. He doesn’t see a bunch of consumers loosing money to this. Has that changed your stance?”
Ingwersen: “We’ve had three that have really been highlighted just in southern Maine. We haven’t heard a lot from around the rest of the state, but there has been some, so I think that even though it’s rare, we really need to address it.”
“I was pleased that we did come up with a couple of recommendations that we’re going to put in the report,” Ingwersen said.
Key Recommendation: Verify the seller’s identity
The first area of agreement among most, not all, stakeholders would legally require listing agents to verify a seller’s identity.
“The way it is now, it’s best practice. And a lot of professionals are doing best practice,” Ingwersen said. “The red flags in deed fraud are cash sale, land only, a quick sale at below-market value If we had realtors really paying attention to those red flags but also a policy that would require them to check the identity of the fraudulent seller, or of the seller, thoroughly, I think it would prevent, even if it prevented one instance of deed fraud, I think it would be very helpful.”
The commission did not outline exactly how identification should be verified.
“We didn’t really specify what that identification process was going to be. We’re leaving that up to rule making,” Ingwersen said.
Second Recommendation: Easier path to undo a fraudulent deed
Currently, the only way to reverse a fraudulent deed in Maine is to go to court.
The commission proposes allowing an attorney to file an affidavit with the registry.
“Allow an attorney to file an affidavit with the deed recorder that would allow the deed to be, the fraudulent deed, to be nullified in a way that is a little bit quicker than we currently have,” Ingwersen said.
The recommendations will now head to the Legislature’s Judiciary Committee. Any legislative change likely wouldn’t take effect until 2027, if the proposals make it into a bill and then survive a vote.
“I think we made some good progress, but I don’t think this is going to go away. I think this will continue,” Ingwersen said.
Landowners fear fraud will try until it succeeds
“We were thinking, do we take a loan out on it just to secure it?” Ralph Nathanson said.
As the legislative process begins, the Nathansons say Maine cannot wait. They fear it’s only a matter of time before a sale of their land goes through.
“To lose land like this or to find out that their land is now gone, I just can’t imagine that,” Ralph Nathanson said.
Ideas Left on the Table: Title Freeze and National Guidance
Several proposals failed to gain traction, including a “title freeze.” a concept similar to a credit freeze that would allow a landowner to lock their deed from unauthorized transfers. Maine could have been the first state to pilot it, but members said they lacked enough information.
Instead, they pointed to national group studying deed fraud. The Uniform Law Commission is drafting model legislation that states, including Maine, could adopt to better protect landowners.
