Don't such things need to be handled by a notary?
That will depend on state laws. A title transfer via deed may be valid without notarization, but may also be subject to legal challenges more easily and for longer periods of time. Same with evidences of encumbrance such as mortgages.
Even when notarial acknowledgement is obtained all that amounts to is a legal presumption of authenticity in the acts documented. False identification, forgeries, and fraudulent acts occur with or without the involvement of notaries.
In the matter of title theft (subject of this thread) falsified documents (deeds or mortgage encumbrances) are filed for public record. Overturning such a public record requires action in court to cancel the purported acts and "quiet the title" of the subject property. These actions are civil matters, generally beyond the limited knowledge and abilities of the layman, so attorney fees and court costs are to be expected. The time required to accomplish these actions may be months, perhaps a few years, and during that period there will remain a "cloud on title" that can seriously inconvenience the legitimate owners, estates, rightful heirs, or other persons of interest (such as earlier lien holders via mortgage, etc).
Like many other matters of law, there is no direct connection between criminal acts and civil torts, and there is no public official designated to advocate for the victims of civil torts. Even when a crime is proven and the perpetrators are prosecuted, there remains the necessity of undoing the civil damages involved. Conviction in criminal court is usually not even allowed in evidence in a civil lawsuit; the burden of proof is always on the plaintiff (in such cases the victim of the crime).
Home title insurance is just that, an insurance policy offered by a company that offers to step in and cover the costs of repairing the financial injuries suffered by the insured victim. I would expect that the companies and policies are under the supervision of each state's regulatory agencies like any other insurance plan.
Before purchasing such a policy my first step would be to discuss the matter with my homeowners insurance company and see if I might already have such coverage under a broad-form HO policy.
