Seller Impersonation Fraud: Red Flags for Title Agencies

The fraudster finds a property that is easy to impersonate an owner of: vacant land, a rental, a second home or a house with no mortgage. They list it or find a cash buyer, then ask for a quick closing and avoid anyone who could confirm who they are. If the sale closes, the real owner and the buyer both discover the problem later.

Title and escrow teams are the last checkpoint before money moves, so a few consistent questions at intake can matter a great deal.

• The property has no mortgage or other loan to pay off, especially if it is vacant land or not owner-occupied
• The seller lives out of state or abroad, or gives a mailing address far from the property
• The seller will not meet in person or by video, or prefers to deal only by email and text
• A fast, all-cash closing is requested, often with pressure to move quickly
• The seller’s email address or phone number changes after the first contact, or does not match what the agent or listing gave you
• The same link is opened from several devices or places, or from outside the United States
• The price is well below market, or the seller declines to negotiate or to see the buyer’s contract details
• The seller asks for the proceeds to be sent somewhere other than a bank account in their own name

• Confirm the owner against public records, then contact them using a phone number you found yourself, not one supplied by the seller
• Ask for an in-person or live video meeting and check a government-issued photo ID against the person, following your underwriter’s guidance
• Use a notary or remote online notarization process that your underwriter accepts
• Check the property tax bill and any recent address changes with the county
• Hold wire disbursement until identity is confirmed, and pay proceeds only to an account in the seller’s name that you confirmed by phone
• Tell your underwriter and follow their escalation process if you remain concerned

On the Seller Information form, an optional “A few quick questions” section asks whether the seller lives in the United States, can meet, what closing timeline they want and whether a cash closing is expected. After the seller signs, a “Review these items” panel lists each common sign, marking whether it was seen, not seen or unknown, with the evidence.

A link-activity panel adds whether the Magic Link was opened from several devices or networks, from outside the United States, or whether the email or phone number changed from what your team entered when sending. The panel is a prompt for your own judgment. It does not decide whether anyone is committing fraud, and a flag has many innocent explanations, such as a traveler or someone switching from Wi-Fi to a phone network.