Seller impersonation fraud is a growing concern in real estate, but being vigilant about key warning signs can protect you from significant losses.

Watch for these red flag warning signs:

🚩 Inconsistent Information

If the seller's details don’t match recorded documents, or they avoid identity verification methods like multi-factor authentication, it’s time to dig deeper. A lack of knowledge about the property or unwillingness to use a reputable notary are also strong indicators.

🚩 Avoiding Direct Contact

Sellers who avoid face-to-face meetings, prefer text over phone calls, or have inconsistent grammar in their communications should be treated with caution. A sudden desire for remote closings or asking for the closing to happen outside the state or country can signal fraud.

🚩 Price Below Market Value

Be wary of a seller who urges a quick sale or is willing to accept an offer significantly below market value. A rush for a cash buyer without a clear explanation is another common tactic used by fraudsters.

🚩 Suspicious Requests for Proceeds

If the seller insists on wiring the proceeds to an unknown or foreign bank account, or the wire account name doesn’t match the seller’s name on the documents, you’re likely dealing with a fraudulent seller.

Identifying and Preventing Impersonation

To protect yourself, always verify the seller’s identity by carefully checking their documents, using online searches, and requesting additional verification like utility bills. Engage with the owner of record and confirm details with the listing agent before proceeding.