FRAUD ALERT: RED FLAGS FOR SELLER IMPERSONATION FRAUD

In recent years, there has been an increase in fraudulent transactions involving property with absentee owners. It is important for agents to recognize the red flags to protect themselves and their clients from seller impersonation fraud.

RED FLAGS:

• Listed property is non-owner occupied (aka absentee owners). Examples include vacant land, in-fill vacant lot, investment property, rental property, vacation homes, and short-term rental property.
• Property is not listed with an agent, but instead through a For Sale by Owner website that shares listing information on public listing platforms.
• Property is free and clear of liens.
• Property is listed well below market value.
• Seller will only communicate via text or email.
• No one knows the seller; agent has never spoken to the seller until a cash offer is made.
• Seller refuses or is unable to complete identity verification.
• Seller eagerly accepts all terms, showing no objections to fees, costs, or other terms.
• Seller will only take cash offers and insists on a quick close.
• Seller insists on their own notary.
• Seller refuses to attend closing and claims to be out of the state or country.
• Seller wire instructions are to a bank that is not geographically close to the property or mailing address on the tax bill.

BEST PRACTICE STEPS:

• Investigate the absentee seller and do not rely solely on information provided by them.
• Search for the actual seller using public sources like Google and the Secretary of State Corporate Records.
• Reach out to the mailing address listed on the county appraisal district website.
• Ask the seller to provide a government issued photo ID.
• Schedule a video conference call with the seller.
• Ask questions about the property that are not available in public records.
• Request copies of utility bills, tax bills, surveys, title policies, and other documents that only the seller would have.
• Work with a trusted Title Company, like Heritage Title Company, which has implemented fraud detection procedures.

IF YOU BELIEVE YOU ARE A VICTIM OF SELLER IMPERSONATION FRAUD:

• Cease all communications with the fraudulent seller.
• Contact local authorities to report the fraud attempt.

If you have any questions or notice any red flags, reach out to your Heritage Title Company escrow team.