Forgery and impersonation present some of the most difficult risks in modern real estate transactions. Unlike traditional title defects, forged instruments often appear facially valid and may not be discovered until long after closing. To address these concerns, the American Land Title Association developed ALTA Endorsements 49 and 49.1, which provide enhanced protection against losses arising from forgery and impersonation affecting the insured's title. These endorsements have been approved for issuance in North Carolina by the North Carolina Department of Insurance for 1 -4 family residential property effective February 1, 2026. The coverage afforded is affordable. The premium approved by the Department of Insurance is 15% of the regular premium.

The ALTA 49 Forgery Endorsement is issued with a new policy and insures the owner against loss or damage sustained or incurred by the Insured because of a defect in the title caused by a forgery of a deed or Mortgage recorded in the public records after the date of the policy in which the Insured was impersonated as the grantor. This includes situations where a person signing the mortgage falsely purports to be the owner of the property or an authorized representative.

Importantly, the ALTA 49 goes beyond the standard Covered Risks in an owner's policy by affirmatively addressing forgery-related risks that may otherwise be disputed or subject to exclusions. The endorsement is particularly valuable in transactions involving powers of attorney, estates, trusts, business entities, or absentee owners - scenarios where identity verification is more complex and fraud risks are heightened.

The ALTA 49.1 Endorsement expands upon ALTA 49 by making the coverage available to an owner under an existing policy. It insures against loss or damage sustained or incurred by the Insured because of a defect in the title caused by a forgery of a deed or Mortgage in which the Insured was impersonated as the grantor recorded in the Public Records after the date of the endorsement.

For attorneys representing owners, ALTA 49 and 49.1 provide meaningful risk mitigation tools, but they are not substitutes for sound closing practices. Counsel should advise clients that these endorsements insure against legal invalidity caused by forgery or impersonation, not losses arising from market conditions, borrower default, or negligence in underwriting.

Given the rise in real estate fraud nationwide, the coverage these endorsements provide is increasingly being requested by residential property owners. Attorneys should understand the distinction between forgery and impersonation, the underwriting conditions imposed by title insurers, and the limits of coverage provided.

In sum, ALTA 49 and 49.1 offer important, affordable, targeted protection against some of today's most insidious title risks - when properly understood, documented, and deployed.