Seller impersonation scams are the next kind of fraud to know
By Birthright Title
The Birthright Title team has used this space to talk about many types of fraud all of us in real estate need to know. But today, we’re spotlighting seller impersonation fraud – which is exactly what it sounds like. Fraudsters listing vacant lots, vacation homes and more for sale, hoping the action will go unnoticed until it’s too late.
We started to see warnings about this issue, including this one from Greater Nashville REALTORS, at the start of 2023, but the scam continues to be popular. It’s even prompted warnings from the U.S. Secret Service. The good news is that everyone is still talking about these incidents. In a recent HousingWire piece, ALTA CEO Diane Tomb encouraged all of us in real estate to talk more about this type of fraud, so that’s what we’re doing today. Here are some potential red flags we can use to identify a possible seller impersonation scheme.
A seller is quick to accept a below-market offer, especially if that’s in conjunction with a speedy closing and an all-cash offer. Other concerning signs include a seller insisting on picking a notary unknown to the rest of us or becoming nervous and more demanding as Closing Day approaches.
A seller isn’t willing to produce a government ID, or the name on the ID doesn’t match the property information. Pro-tip: If you’re suspicious, try comparing the ID’s signature with previously signed documents.
A seller only makes contact via email or text and refuses to talk on the phone or meet in person. If calls to the seller’s provided phone number are always sent to voicemail, and the person only responds via text, it’s OK to be wary.
A seller doesn’t appear to have ties to your network or area. All of us wish our Realtor friends more listings this season. But if it seems too easy, remember this. Often, scammers will send messages to multiple agents in an area using an internet search.
Current homeowners can also take steps to stay vigilant in this battle. Even if you don’t fit the profile of a likely target, these two steps are so simple we had to include them. That includes signing up for a property monitoring service offered by your county government and setting up a Google alert for the properties you own.
A general rule regarding fighting these scams and more: If something seems off, it probably is. The Birthright Title team is always here to guide our customers to your “home sweet home.” That includes doing everything to ensure your transactions stay safe and secure. Reach out to us anytime you need us!
