Shellie Carnal Business Consultant - Texas North American Title Company scarnal@nat.com

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

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

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

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

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

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!

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

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…

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

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

TUESDAY: Fraudster creates a fake email 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?

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

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

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

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

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 email accounts

Pick up the phone to verify new or last-minute instructions for transfer of funds Investigate oddities – oddly worded requests, different email 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