As REALTORS®, the trust you build with your clients is priceless.
However, the increasing threat of seller impersonation fraud is putting this trust at risk. This type of fraud involves criminals posing as legitimate property owners to carry out unauthorized sales.
Recognizing the warning signs can help prevent significant financial losses and legal complications. Here are seven red flags to watch out for:
- Unusual Communication Methods: Take notice if a seller you’ve started working with opts for personal email or messaging apps over the established communication channels you provided. This shift may indicate an attempt to avoid detection.
- Urgency in Transactions: Caution is also needed when a seller insists on closing deals swiftly without transparent reasons. Such urgency can be a strategy to avoid verification. Real transactions typically follow a structured timeline, providing ample time for due diligence.
- Inconsistent Documentation: Another major red flag is incomplete or inconsistent documentation from the seller. Any discrepancies or missing details can signal fraudulent activities.
- Difficulty Verifying Ownership: It is crucial to confirm the seller’s ownership through public records or reliable verification services. Be wary of any documents that fail these verifications.
- Unusual Payment Requests: Pay attention to unusual payment requests, such as demands for payments to be made to third parties or through non-traditional methods. Legitimate sellers typically follow conventional payment procedures. Any deviation from standard practices should be scrutinized.
- Reluctance to Meet in Person: Fraudsters will shy away from face-to-face meetings. If a seller avoids meeting or consistently provides excuses not to meet, it’s advisable to pause moving forward. Authentic sellers are usually open to discussing transaction details in person.
- Last-Minute Changes in Wiring Instructions: Be extremely cautious if unexpected changes to wiring instructions occur. Always verify such changes directly through known and trusted contacts—never rely solely on email communications for such critical updates.
The Bottom Line
By staying alert and recognizing these red flags, you protect yourself and your clients from seller impersonation fraud. Always verify ownership, insist on face-to-face meetings and adhere to standard communication and payment protocols.
For more information on preventing real estate fraud, remember that you’re not alone. Visit the National Association of REALTORS® (NAR) and the American Land Title Association (ALTA) for valuable resources and support.
Allegiance Title is committed to supporting REALTORS® like you by providing secure, transparent and efficient services. We ensure that every transaction builds on the trust you’ve worked hard to establish. We look forward to working with you on your next transaction.
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