You walk into what you think is a potential listing appointment. The property looks legit. The “seller” seems ready to go. Then, boom, you find out it’s already listed by another brokerage. Or worse, it was never for sale to begin with.
Welcome to the new frontier of real estate fraud.
If you’re an agent in today’s market, it’s not just about pricing strategy and lead generation anymore. It’s about spotting criminal schemes before they hijack your time, reputation, and client trust. From seller impersonation to wire fraud, fraudsters are getting smarter, and you need to be even smarter.
Let’s break down what’s really happening behind the scenes, how to protect yourself, and what title experts like Victoria Feather at Capital Title are doing to stop it.
Table of Contents
Seller Impersonation Fraud Is on the Rise
Not every seller is who they claim to be. One of the fastest-growing scams in the real estate industry is seller impersonation fraud. Criminals are finding ways to pose as property owners, especially when the land is vacant or the structure is abandoned. Technology has made it easier than ever to fake listings, forge IDs, and con agents into moving toward closing before anyone realizes it’s all a setup.
These scammers don’t just fake documents. They study public records, find vacant land or distressed properties, and concoct a story that sounds believable. Then they move fast. The goal? Trick an agent and title company into closing so they can disappear with the proceeds.
Here’s what’s common with seller impersonation fraud:
- The property is vacant land or has an uninhabitable structure
- The “seller” never agrees to meet in person or over video
- Communication is rushed or evasive
- The asking price is lower than market value to spark quick interest
- They claim to live far from the property’s location
These fraudsters are clever and persistent. Some are local. Some are part of larger rings operating across state lines or even internationally. Once funds are transferred, they hop from bank to bank until the money vanishes. And yes, some do get caught, but many don’t.
Why it matters: The damage doesn’t just fall on title companies or buyers. Agents risk their reputation, safety, and liability when they engage with fraudulent parties, even unknowingly.
Why Vacant Land Is a Fraud Magnet
Scammers go after what’s easy. And nothing screams “low risk” like a plot of vacant land.
Why It’s Targeted
There’s no house to inspect. No tenant to question. And often, no nosy neighbors. It’s the perfect setup for someone pretending to own property and wanting to stay anonymous.
Characteristics of High-Risk Listings:
- No physical structure or only dilapidated dwellings
- Owner mailing address doesn’t match property location
- High-pressure tactics to list and close quickly
- Unwillingness to appear on Zoom or FaceTime
- “Deals” that are under market value
What You Should Watch For
If a seller refuses all video contact or pushes for fast transactions during busy end-of-month or holiday timelines, stop. Slow down and verify. Scammers prey on chaos and speed.
Actionable Tips:
- Request a face-to-face video call
- Suggest certified mail to verify the seller’s identity
- Avoid engaging with leads that seem too polished or rehearsed
Trust your gut. If something feels off, it probably is.
Wire Fraud Is Still a Threat, But It’s Evolving
Remember when wire fraud warnings were popping up in every inbox and office meeting? It’s still happening, but fraudsters have adapted. Rather than intercepting wire instructions as frequently, scammers now spend months watching emails, looking for a high-dollar opportunity to strike.
The FBI confirms that most wire fraud begins with compromised email accounts. These bad actors spoof emails, swap out contact info, and reroute wire transfers just before closing.
Capital Title combats this with a proactive approach:
- Verifying wiring instructions independently, not via email
- Using identity verification tools for buyers and sellers
- Training agents and staff on red flag behavior
If your title partner isn’t doing this, it’s time to find one that does.
Real-Life Examples of Deed and Title Fraud
Victoria shared one of the most chilling real estate fraud stories from the frontlines. In this case, a fraudster drafted a series of fake deeds to transfer property ownership, from the original owner, to a made-up person, and then to themselves.
The scam went undetected because none of the deeds were recorded properly or insured. When the fraudster tried to sell the property to a new buyer, they asked for title insurance, which triggered the title exam that exposed everything.
This is why unrecorded conveyances and uninsured transactions are a massive risk. A reputable title company will stop these from progressing, but only if the transaction hits their desk in time.
Title Commitments: The ABCs You Should Actually Read
Title insurance can feel like a formality to some clients, and sometimes to agents. But as Victoria emphasized, it’s one of the most important tools in protecting everyone involved in a transaction. Without it, fraudulent deeds and seller impersonation schemes can fly under the radar until it’s too late.
Agents who understand how the title works can spot problems early. They’re also more likely to gain trust with clients who appreciate a partner who pays attention to the details.
The Four Schedules You Need to Know:
- Schedule A: Shows the legal owner, buyer, lender, and legal description of the property.
- Schedule B: Lists all the exclusions from the policy, like easements or rights-of-way, that won’t be covered.
- Schedule C: This is your roadmap for closing, identifying issues like probate, liens, or incorrect vesting.
- Schedule D: Discloses the underwriter and how premiums are split, along with affiliated business disclosures.
💡 A tip for agents: You don’t have to interpret everything, but you should be able to flag something that looks strange and point your client to the title company for answers. That’s how you build value.
How Agents Can Prevent Fraud and Stay Ahead
You’re the first line of defense in most real estate transactions. Fraud prevention starts with you.
Pro Tips:
- Get seller ID verification through Closing Lock or similar tools
- Always request a video call with the client
- Don’t fall for urgency tactics
- Ask questions, then ask again
- Partner with a trusted title company that knows what to look for
Real estate is moving fast. But you don’t have to. Slow down when something feels wrong, and always protect your client’s investment like it’s your own.
Trust Your Gut and Know Your Stuff
No amount of marketing or negotiation skills can protect you if you don’t know the risks lurking in the background. Title fraud, seller impersonation, and wire scams aren’t just headlines, they’re happening to agents across Texas right now.
The good news? You have tools, resources, and partners who are ready to help you fight back. Know what to look for, ask the right questions, and don’t be afraid to slow things down when something doesn’t add up.
This isn’t just about closing deals. It’s about protecting people, and being the kind of agent who’s impossible to fool.
🎧 Want to Learn More? Listen to the Full Podcast Episode
In this episode, you’ll hear:
- How title fraud happens (and how agents can catch it early)
- Why vacant land is a top target for scammers
- How Capital Title combats seller impersonation with tech and training
- Real stories from fraud attempts across Texas
- What you should really be looking at on a title commitment
🎙️ Tune in now to hear how agents can level up their fraud prevention game and protect every transaction with confidence.
To listen to more of our podcast episodes, visit The #RealtyHack Podcast Page. The #RealtyHack Podcast is also available to listen to on Spotify, Google Podcasts, Apple Music, and your other favorite podcast directories.
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