Deed Fraud Prevention

Deed Fraud Prevention
Credit: Photo by Victoria Wylde

Sedona Monthly Column November 2026 Issue  – Roy E. Grimm, PhD

For many of us, owning property in Sedona has been an enduring dream realized. Unfortunately, it also runs the risk of becoming a nightmare without prudent precautions to prevent deed fraud. Our mix of expensive real estate with a plethora of out-of-town owners, investment properties, second-homes, – particularly those that are unoccupied for long periods of time -, and vacant land make Sedona especially vulnerable to  property identity theft. Deed fraud is one of the fastest‑growing crimes in Arizona where criminals count on owners being distant, distracted, or simply not vigilant. And, we are now seeing more of it in Sedona.

It occurs when someone unlawfully transfers ownership of a property, forges signatures, or uses stolen personal information to impersonate the rightful owner. Often, a criminal falsifies a deed and records it with the county, creating the appearance of a legitimate transfer. Once that fraudulent deed is in the public record, the fraudster can take out loans against the property, or encumber it with liens, or attempt to sell it.

The first line of defense is registering one’s properties with Yavapai or Coconino County’s Recording Alert System. These alerts notify owners whenever a document is recorded under an owner’s name or parcel number. County recorders do not verify the legitimacy of documents; they simply record what is submitted. But owners have to register in order to receive those alerts. That alert can be the difference between catching a forgery early versus discovering it only after a fraudster has done further damage.

Title companies provide another essential layer of protection. Sedona owners and buyers should ask their title officers about the possibilities of enhanced title‑insurance coverage. Standard title insurance protects against issues that existed before closing, but upgraded endorsements, if available, can protect against fraud that occurs after closing and help clean up the legal mess caused by that. In some cases those endorsements may be added to existing policies.

Beyond this, property owners are urged to add a recently created tool by registering with the Arizona Department of Real Estate’s Early Real Estate Sales Alert System (ERAS) at EarlyAlert.azre.gov. The state-wide system is designed to catch fraud in pending sales before close of escrow. When an escrow officer enters an owner’s name, parcel number, or property address, ERAS sends an immediate alert to the owner. This early warning can help stop a fraudulent sale before the deed is sent to the county for recordation, thus protecting both buyers and sellers. Property owners must register for the program themselves and not expect a title company or a real estate agent to do it for them.

For their part, it is imperative that Buyers work with experienced real estate brokers who know many of the tell-tale signs of fraudulent sellers and do their best to avoid them in the first place.

Registering with the county, consulting title agencies, and enrolling in the ERAS create a layered defense that can protect Sedona properties from serious fraudulent harm.