Protecting Your Home from Deed Theft: The Benefits of TIRSA Owners Extended Protection Policy

Over this past weekend you may have read news articles summarizing the conviction and criminal sentence handed out to convicted fraudster, Marcus Wilcher, for his role as the leader of a Queens deed theft ring, who together with co-conspirators (including a now disbarred attorney), targeted elderly or disabled Queens County residents to “steal” their homes using false identity documentation and imposter “Sellers.” 

A link to NYS Attorney General’s press release regarding this matter is included below.
ag.ny.gov/press-release/2024/attorney-general-james-announces-conviction-leader-queens-deed-theft-ring

While it is anticipated there will be more convictions and sentences imposed in connection with this particular case, the fact remains that Deed Fraud is on the rise nationwide and, unfortunately, your clients are always at risk to fall victim to such criminal efforts to steal what could be their most precious asset – their home!  While it is some comfort to know that the Attorney General is willing to prosecute these criminals after they complete their investigation and build a case, if your clients only purchased a standard Owner’s Title Policy at their closing, they would have no recourse or coverage under that standard ALTA Owner’s Policy to recover monetary damages suffered as a result of the post-closing, fraudulent deed transfer.  There is some good news, however.  For transactions where the Purchaser is a natural person and is purchasing to use the property as their primary residence, we would strongly recommend that you recommend  the purchase of a TIRSA Owners Extended Protection Policy (TOEPP) in lieu of a standard Owner’s Policy.  The TOEPP not only insures your clients against post-closing fraudulent deed transfers, but also provides coverage for a variety of other pre-closing and post-closing issues, including but not limited to, rights under unrecorded leases, post-policy encroachments (ie. a neighbor erects a fence on a portion of your property post-closing), post-policy Adverse Possession claims and post-policy Inflation of coverage of up to 150% of the Purchase Price for five (5) years post-closing (similar to a limited market value rider, except with the additional benefits included).  Below is a link itemizing all of available coverages you get with First American Title’s TOEPP (the “EAGLE Owner’s Policy”), as well as a comparison to the standard ALTA Owner’s policy which highlights the potential gaps in coverage that your clients face in the event they elect not to obtain the TOEPP when they acquire title.  While the TOEPP does incur a one-time additional premium, for those practitioners and property owners that wish to secure the best title policy protection available, the additional premium may likely be far less than the costs associated with litigating any number of the additional title issues covered by the TOEPP.

Click the below link to learn more about the TOEPP and all of its benefits:
Home_Eagle_Owners_Policy_vs_ALTA_Owners_Policy.01.pdf