Do you need title theft insurance?

Attorney Tom Olsen: -John, you're on WDBO. Go ahead.

John: Good morning, Mr. Olsen. I have a question. I've heard horror stories of title theft, whereby someone will obtain a copy of a title off the internet from the clerk's office. They'll put their name on it, sell it, and then the actual homeowner ends up getting evicted because they're on a hook for a loan that they had nothing to do with. Does that actually happen?

Attorney Tom Olsen: John, thank you for that great question. That horror story that you just heard-- I'm sure you heard it on a TV commercial somewhere. John, let me give you the lowdown about title theft and what's real and what's not real. First of all, when you hear these commercials for title theft, they're trying to sell you something, John. You need to understand they're going to give you the worst-case scenario. They're trying to get you to act out of fear.

John, I would say this. As far as a home you live in, do not be concerned about title theft, because if something was going on, you would know about it. There would be survey stakes. There would be inspectors. There would be appraisers coming around. You'd know about it. Where does title theft occur? It happens on vacant lots.

Speaking of which, in the last few months, we have had two clients that had a theft of title as to their vacant lots, and we're representing them. Why vacant lots? Because these vacant lots are in distant parts of town or cities or another state, and when these survey stakes are going up, they don't know they're going up. They don't know something's going on, and it's all done and over with before the real owner of the property knows what happens.

Attorney Chris Merrill: Exactly. The owners are not right there, and so it makes it easier to do this for vacant land.