2. Shellie Carnal Business Consultant - Texas
North American Title Company

3. wrongful or criminal deception intended to result in financial or personal gain.

4. Vacant or non-owner occupied properties
Property free and clear
Uninsured deed to a third party in the chain of title
Release of lien filed quickly after the original loan without new financing
No personal contact with the customer

5. New customer without any connection or solicitation
Not available/willing to come to closing (and they have their own notary)
Pressure for a quick close
Seller requests to wire proceeds to a third party
Another title company will not close it

8. Vacant property
No liens on property
Buyer/Selling Agent has never met Seller or Listing Agent
Sales price is way below value listed on appraisal website

9. Seller can’t come to closing and requests closing documents be sent to him so he can sign before his own notary
Seller presents an ID to the notary
Documents sent back to title company and Seller is anxious for the proceeds
Buyer signs and is anxious for the keys
Seller is asking for proceeds to be wired to a business account

10. Never heard back from the fraudulent Seller!
Seller’s documents are received by the title company.
Thankfully, the title company reviewed the signed docs with diligence! …Check out these signatures
Never heard back from the fraudulent Seller!

11. What can a Real Estate Agent do to be on alert?

13. Property is free and clear
Seller lives in California and signs before a vetted notary
Seller directs title company to send a check to her in California
Deal funds on a Friday, and Buyers get the keys
Take a look at the fraudster’s timing…

14. MONDAY: Title company receives an from Listing Agent stating the Seller wants their proceeds sent via wire to their personal company’s account.

15. MONDAY: Multiple emails received from the agent asking about the wire.

16. TUESDAY: Fraudster creates a fake for the title company and informs the Real Estate Agent that the Seller’s funds are on the way.
Why would the Fraudster
do this?

17. WEDNESDAY: Sellers call title company asking the whereabouts of their CHECK? Is the money gone?
It depends….

18. What can a Real Estate Agent do to be on alert?

20. instructs Buyer to wire “purchasers funds” 10 days prior to closing to “avoid any delays on the day of closing.”

22. Buyer wires funds as instructed.
Buyer shows up at closing only to find out that the title company did not receive any funds
This can be prevented by:
Educating Buyers about the closing process, including when to send earnest money and purchase funds
Letting them know who will be contacting them
Advising them to verify instructions that seem odd or inconsistent with previous conversations

23. Know the parties to the transaction – beware the customer who is requesting financial arrangements outside the norm
Check out last-minute or unexplained powers of attorney or deeds
Be on alert for signs of coercion when properties are being handled by caretakers of the elderly
Question any situation where a client is requesting secrecy or rushing the transaction
Use the highest security measure available for your computer and accounts

24. Pick up the phone to verify new or last-minute instructions for transfer of funds
Investigate oddities – oddly worded requests, different addresses, anything that seems out of step with the transaction
Provide clients with useful resources that will educate them about the closing process  
Educate clients on the importance of protecting their nonpublic personal information required for closing
Urge clients to store their personal documents in a safe place or shred when no longer needed