A few weeks ago, during a casual meeting, an attendee brought up a topic that caught my attention – Seller Impersonation Fraud. This type of fraud is also known as Title Theft or Title Fraud and concerns residential homes and properties. I decided to seek out an expert to shed light on this growing threat.

I had the privilege of speaking with Lindsey Rogers, a seasoned closing attorney at Campbell and Brannon. Lindsey graciously shared her insights and knowledge on how to protect your home. Our conversation was eye-opening and served as a wake-up call for anyone who values their home and property.

Understanding Title Fraud

So just how does this work? Lindsey says, “The fraudster calls a realtor and says they need to sell a property quickly. They often have very dramatic stories of why they need to list. They say they want a cash offer ASAP and are willing to sell lower to get a cash offer.” These fraudsters are convincing. They might have Googled or looked up the real homeowner to gather information. They work to be more believable to unsuspecting realtors.

In this type of scenario, the agent can easily find a buyer. The agent might not even meet the fraudulent seller because they are good with excuses. A quick cash closing is in the works. These fraudsters have dramatic stories of why they need to do a mail-away closing. Or, they might call at the last minute and claim they can’t attend the closing.

Who’s at Risk from Title Fraud?

What type of homeowner is most at risk? Owners of vacant homes and properties, as well as those with second homes are at greatest risk since the owners are away for long periods of time. In one case, a friend called an owner and said I see your For Sale sign – You didn’t tell me you were selling your land. The owner, who lives out of town, did not list her land for sale. She is at risk of having her title stolen and land sold without her knowledge. Thankfully, her friend tipped off the owner before anything happened.

If the closing attorney is not vigilant and hasn’t set up protocols, this type of fraud can and does happen. If a fraudster is successful, then you, as the homeowner, have to file an action and prove that you were not the seller. Usually, this has to go before a judge so the deed can be invalidated.

Protect Your Home

Now that we know how this fraud operates, what can homeowners do to protect their properties? Ask friends and neighbors to keep a lookout for vacant properties and report any activities. Also, one effective step is monitoring deed records. One such company, Title Lock, offers this service for a monthly fee.

However, there’s great news for Georgia homeowners! The Georgia Superior Court Clerks’ Cooperative Authority offers a monitoring service for free called FANS (Filing Activity Notification System). Property owners can create an account on their website. 

Additionally, some counties offer their own versions of this service. Fulton County has REAACT (Fulton County REAACT), and DeKalb County has its own fraud registry program (DeKalb County Fraud Registry).

Understand Title Insurance

Lindsey went on to offer some valuable information on title insurance. She says, “If you purchased your property from a fraudulent seller and you have owner’s title insurance, you will have coverage under your policy to protect your investment.  Additionally, if you have an enhanced owner’s title policy, that policy provides post-policy forgery coverage.  This means that the title insurance company will defend your ownership interest in your property if someone forges your signature on a deed.”

In conclusion, seller impersonation fraud – Title Fraud – is a growing concern that demands our attention and vigilance. It can happen to anyone, anywhere. By staying informed, implementing preventive measures, and fostering a sense of community vigilance, you can protect your home and properties from falling prey to these unscrupulous individuals.

Remember, it’s not just your home; it’s your sanctuary, your legacy. Let’s work together to keep it safe and secure.

If you have any questions or stories to share about seller impersonation fraud, please feel free to e-mail me or Lindsey.

Many thanks to Lindsey Rogers of Campbell and Brannon

Contact me today to start a conversation about your real estate dreams. 

Lee Ann Wynns Leeannwynns@dorseyalston.com 404-680-7850  Linktr.ee