You may have just learned that the previous owner forged the deed to the home you are buying. This can place your investment and closing timeline at risk.
In Florida, property transfers require valid deeds that are properly executed and recorded. A forged deed is generally void. This means the recording system usually does not protect later buyers from forgery. Lenders and title insurers therefore treat these issues very seriously.
How forged deeds affect property ownership in Florida
A forged deed can break the chain of title, which may stop your closing or create financial exposure. The impact may vary depending on whether the issue is true forgery or a signing or notarization defect.
Sellers generally must provide marketable title at closing. Credible evidence of forgery usually prevents title underwriters from issuing insurance until the defect is cured and lenders may not close without title insurance. However, discovering a forged deed can:
- Delay or halt your closing
- Create potential financial loss
- Lead to court proceedings to correct or quiet the title
If you discover forgery before closing, you likely will not receive a title policy until the defect is fixed. If discovered after closing, an owner’s policy may provide defense or coverage only if the claim falls within coverage and is not excluded.
Deciding your next steps
If you discover forgery before closing, you may be able to stop the transaction. However, your rights often depend on your purchase contract. This can mean you may not be able to cancel immediately.
Many contracts require the seller to deliver marketable or insurable title and allow time to cure defects after notice. If they cannot do this within the contract timeline, you may be able to cancel the sale or recover your deposit.
If you still want to proceed with the transaction, you may contact the closing agent or title company to report the issue. A real estate attorney may also help you review options, verify public records and confirm the chain of title. However, some situations may require legal action to fix the title.
Protecting your home and peace of mind
The best way to protect yourself is through careful due diligence and title insurance. Prompt professional guidance can also help resolve title issues efficiently and protect your investment. You can move forward with confidence knowing your home and your investment are secure.
