The phone call was polite, professional and completely convincing: a seller offering a quick cash sale on a vacant lot, sight unseen. Everything was remote (the notary, the documents), and the deal closed fast. The agent was happy, the wire went out, and life continued as normal.
Six months later, the real owner showed up, and they knew nothing about the sale. The entire deal was a devastating fraud orchestrated by a “Title Pirate.”
This isn’t just a scary campfire story; it’s the reality of seller impersonation fraud, often carried out by sophisticated criminals sometimes called “Title Pirates.“
Why are Vacant Lots the Prime Target?
Seller impersonation happens when someone forges documents or uses a stolen identity to pose as the true property owner. And while it can impact many types of real estate, vacant land remains a favorite target.
We’ve discussed the danger of seller impersonation fraud (also known as vacant land fraud) before, but the warning is worth repeating. According to a recent NAR survey, 62% of reported seller impersonation fraud cases involved vacant land.
Why? Because empty properties are unmonitored. There are no neighbors checking the mail and no occupants to spot a suspicious person. Real estate owned by investment companies or the estates of the recently deceased are also high on the target list.
These scammers are good, too. They look through land records and create a fake identity to match the owner of their target properties before trying to trick an unsuspecting agent (that’s you!) into listing a property they don’t actually own.
Your First Line of Defense: The Red Flags
Real estate professionals play a critical role in spotting early warning signs. Be especially cautious when working with unknown sellers and watch for red flags such as:
- Remote-only communication with no willingness to meet in person or on video.
- Cash-only buyers pushing for speed and minimal verification.
- Below-market pricing designed to attract quick offers.
When something feels “off,” pause the process and dig deeper.
How Continental Title Helps Protect Your Clients
While no safeguard can eliminate every threat, Continental Title Company uses strong verification practices and secure technology to help identify and mitigate risk throughout the closing process.
- Secure Delivery of Wire Instructions (CertifID): When buyers notify us that they will be wiring funds, we use CertifID to send our wire instructions securely. CertifID provides an added layer of protection for qualifying transactions and helps ensure the information reaches the intended party safely.
- Confirmation of Seller Wire Instructions: If seller wire instructions are provided outside of an in-person closing, we take steps to confirm their accuracy through trusted methods.
- Identify Verification Tools: We partner with reputable third-party vendors to verify identities as appropriate. These tools help us flag inconsistencies that may warrant further review.
- Title Insurance: If a forgery or impersonation succeeds despite the best safeguards, the Owner’s Title Insurance Policy is the buyer’s financial protection – covering certain risks tied to title defects existing prior to the date of closing.
Your clients count on you to guide them through every threat, and you deserve a title company committed to the same goal. We stay vigilant and encourage you to reach out anytime something doesn’t feel right.
Have a suspicious seller situation or a concern about a property? We’re here to help. Contact Continental Title Company to partner on your next closing.