American Land Title Association (ALTA) Practice Exam 2026 – Your Comprehensive All-in-One Guide to Success!

Title fraud refers specifically to the illegal act of impersonation to transfer ownership of property. This fraudulent activity often occurs when a criminal forges documents or uses stolen identities to trick others into believing they have the legal right to sell or transfer a property. This crime can result in significant financial losses for the real property owners, as they may find themselves facing legal challenges when trying to reclaim their rightful ownership or deal with the consequences of the fraudulent transaction.

The other options present concepts that do not accurately reflect title fraud. The legal transfer of ownership is a standard procedure in real estate transactions and is not considered fraud. A legitimate dispute over property ownership pertains to disagreements that can arise under lawful circumstances, not illegal acts. The tactic used in distressed property sales describes specific marketing or selling strategies that may involve inherent risks but does not involve the illegality associated with title fraud.