Protecting Yourself from Seller Impersonation Fraud in North Carolina
The North Carolina real estate market continues to thrive, attracting buyers and investors looking for opportunities in this dynamic state. However, with increased activity comes heightened risk, particularly when it comes to real estate fraud. One of the most alarming scams on the rise is seller impersonation fraud—a scheme where criminals pose as property owners to illegally sell real estate they do not own.
What is Seller Impersonation Fraud?
Seller impersonation fraud occurs when a scammer falsely claims to own a property and attempts to sell it without the knowledge or consent of the actual owner. These fraudulent transactions can involve vacant lots, rental properties, or even occupied homes, often targeting absentee owners or those with long-held, mortgage-free properties.
How Does This Scam Work?
- Identity Theft – Fraudsters obtain personal information about the rightful owner, such as their name and property details, often through public records or phishing scams.
- Fake Documents – They create counterfeit identification and forged property records to pose as the legitimate seller.
- Rushing the Sale – Scammers typically push for a fast, cash-only sale to avoid extensive verification.
- Title Transfer & Theft – If successful, the fraudster walks away with the buyer’s money, leaving the real owner and the buyer in a costly legal battle.
Warning Signs of Seller Impersonation Fraud
- Unusual urgency – The seller insists on a quick, cash transaction with little room for negotiation.
- Remote communications – The seller avoids in-person meetings and only communicates via email or phone.
- Inconsistent signatures – Documents show signatures that do not match past records.
- Errors in ownership details – Public property records don’t align with what the seller claims.
- Unwillingness to meet in person or show identification – The seller hesitates to provide proof of identity beyond digital copies.
How Buyers and Sellers Can Protect Themselves
Buyers:
- Verify ownership – Cross-check the seller’s identity with public records and official ID verification.
- Work with a reputable title company – Ensure a thorough title search and verification process.
- Use secure payment methods – Be cautious of sellers requesting wire transfers or cash-only transactions.
- Meet in person – Insist on face-to-face interactions and notarized closing documents.
Property Owners:
- Monitor your property records – Regularly check county records for any unauthorized transactions.
- Set up property alerts – Many counties offer fraud alert services to notify you of changes to your property title.
- Secure personal information – Be wary of phishing emails or scams that target your personal data.
- New buyers can request an Enhanced Owner Policy of Title Insurance that may provide protection against a post policy attempt.
What to Do If You Suspect Fraud
If you suspect seller impersonation fraud, act quickly:
- Contact local authorities – Report the incident to law enforcement and your county’s Register of Deeds.
- Notify your closing attorney and lender – They may be able to halt an unauthorized transaction.
- Consult a real estate attorney – Legal intervention can help protect your rights and property.
- Report to the North Carolina Real Estate Commission – They can provide guidance on preventing further fraudulent activity.
Stay Vigilant
Seller impersonation fraud is a growing threat in North Carolina, but awareness and due diligence can help protect buyers and legitimate property owners. Whether you’re looking to purchase real estate or safeguard your existing assets, taking proactive steps can prevent you from becoming a victim of this costly scam.