Imagine waking up to a foreclosure notice on your home—only to learn that, on paper, it isn’t yours anymore. A forged deed, a phony notary stamp, and someone you’ve never met has used your title to borrow tens of thousands against your house. You didn’t sign anything. You didn’t sell. You didn’t even know it happened.
Now you’re expected to hire a lawyer, go to court, and fight to reclaim something that was never really lost—except in the eyes of the system.
This is the bureaucratic nightmare that title fraud victims can face in Vermont. And while such cases are rare, the laws on the books do little to protect homeowners from the legal and financial fallout of someone else’s crime.
Vermont Law: It Punishes Fraudsters—But Doesn’t Protect Victims
Vermont already criminalizes forged property transfers. Under 13 V.S.A. § 1801, it’s a felony to forge or counterfeit public records like deeds. 13 V.S.A. § 1802 makes it illegal to knowingly present such documents. 27 V.S.A. § 542 voids property transfers made with intent to defraud. And 13 V.S.A. § 1404 covers criminal conspiracy to commit any of these offenses.
But none of these statutes spares the victim from having to go to court and spend money to fix it. Even when the fraud is obvious—say, the notary doesn’t exist, the signature doesn’t match, or the homeowner has never even met the buyer—the burden of proof rests squarely on the rightful owner. Counties don’t investigate deed authenticity. They simply record what’s submitted.
Real-World Vermont Cases
While title theft cases are rare in Vermont, law firms have reported seller impersonation scams, where fraudsters pose as out-of-state property owners—typically of vacant land or seasonal homes—and attempt to sell properties they don’t own. In most reported cases, the fraud was caught before money changed hands, but the risk is growing.
Nationwide, the FBI has warned of a sharp increase in quitclaim deed fraud, especially in rural or slower-recording jurisdictions—making Vermont far from immune.
Who Bears the Risk?
If a forged deed results in a fraudulent mortgage or sale, someone will lose money—but under current law, the innocent homeowner bears the burden of untangling the mess. Even if they win in court (as they usually do), they may spend months and thousands of dollars clearing the title.
Banks and buyers who relied on the forged document can claim they acted in good faith. Title insurers may or may not cover the losses. The criminal often vanishes. And the homeowner, who never did anything wrong, is stuck proving a negative: “I didn’t sign this.”
A Legislative Fix? Shift the Burden to the Right Place
A growing number of legal observers and homeowners’ advocates believe Vermont should adopt a simple principle:
If you didn’t commit fraud, you shouldn’t have to clean it up.
To that end, the Vermont Legislature might consider the following statutory framework—modeled on existing fraud protections but with the homeowner’s rights placed front and center. A “Homeowner Title Fraud Relief Act” would hold innocent property owners harmless and shift the burden of proof and cost to those who relied on forged documents.
Proposed Legislation: Homeowner Title Fraud Relief Act
§ X. Protection of Innocent Property Owners in Cases of Fraudulent Conveyance
(a) A person listed as the record title owner of real property shall not be held liable for any legal or financial obligation, proceeding, or encumbrance arising from the recording of a forged, fraudulent, or otherwise unauthorized deed or conveyance, provided that the owner was not a party to or aware of such filing.
(b) Upon receipt of a sworn affidavit from the record owner asserting that a deed or conveyance was fraudulently recorded without their knowledge or consent, the county clerk or recorder shall:
- Flag the filing for administrative review;
- Temporarily suspend the recognition or enforcement of the challenged instrument; and
- Notify relevant parties, including any lenders or purchasers, of the disputed title.
(c) In any proceeding involving a contested property title due to an alleged forged or fraudulent instrument, the burden of proof shall rest with the party asserting a claim to title under the disputed instrument.
(d) A homeowner subject to such fraud shall be entitled to recover reasonable legal fees and costs incurred in restoring clear title, to be paid by:
- The perpetrator of the fraud if identified and prosecuted;
- A title insurance provider, where applicable; or
- The state’s Victims Compensation Fund if no other remedy is available.
(e) The Secretary of State shall establish and maintain a notary verification database accessible to county recorders to ensure validation of notarizations submitted in property transfers. No real property deed shall be recorded unless the notary seal and commission are validated through the database.
(f) Any person who knowingly submits a false affidavit under this section, or who participates in a fraudulent conveyance scheme as part of a coordinated effort, shall be subject to prosecution under existing Vermont statutes governing forgery, fraud, conspiracy, and false claims, including but not limited to 13 V.S.A. §§ 1801, 1802, 3016, and 1401.
Conclusion: The System Shouldn’t Punish Innocence
Title theft is not an epidemic in Vermont, but when it happens, the system currently punishes the victim twice: once when the fraud occurs, and again when the homeowner is forced to fight for their own property in court.
This bill wouldn’t stop every forgery—but it would ensure that Vermont homeowners aren’t treated like suspects in their own homes. And it would finally shift the cost and burden where it belongs: onto those who commit fraud—or fail to detect it.
Have you, a family member, or someone you know been the victim of title fraud in Vermont? Let us know in the comments. Your experience could help shape better protections for everyone.
Dave Soulia | FYIVT
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