Heed this Iowa Realtor’s warning about fake sellers

One of the reasons scammers are so successful is because their targets never think fraud could happen to them. This blog is proof that the popular seller impersonation fraud scheme is alive and well, and it’s certainly happening in our backyard.

The fake seller scam has been around for the last couple of years. The Title Resource Network team even devoted our first blog on our new site to it. However, when we saw this article sharing the story of Adam Pretorius, we knew we had to write on the topic again. Adam is a successful, experienced Realtor from Iowa City, who thought he was vigilant against fraud. But he still had a close encounter with a fake seller – losing about $1,000 in marketing costs, though it could have been a lot worse.

In addition to vacant lots like in Adam’s case, scammers often target farmland, vacation homes and other paid-off properties that aren’t always occupied. Why? The people behind these scams want to push for a sale (often seeking an all-cash offer) quickly before anyone can notice. Here are two of the lessons we all can learn from this near-miss of a story:

These scammers do their research. The "seller" in this case was aware of the legitimate owner's occupation and shared numerous accurate details about the property. This wasn't just an agent getting excited about a new lead. Adam did his due diligence, but it wasn’t enough.

Criminals are undeterred by failure. Adam did list the property but quickly took it off the market once he was notified by the real owner hours later that the lot wasn’t for sale. How did the owner know the property was fraudulently listed? It had been put up for sale by scammers at least twice before.

As you can see, the fraudsters behind this scam continue to evolve based on what works – and what doesn't. That's why we need to keep sounding the alarm about this scam and all the other threats our real estate transactions face. As Adam's story shows, it doesn't matter how much you think you know about fraud; you can always be a target. In his words, it’s OK to stay paranoid until you know that you’re not talking with a catfish.  

That’s why we wanted to provide you with this list of red flags that could suggest you’re dealing with a “seller” who isn’t who they say they are. While tactics are evolving, many scams follow similar patterns. Real estate agents and others involved in the transaction should be on guard against:

·       A seller pushing for an unusually quick, all-cash closing.

·       Properties that are vacant, mortgage-free, or absentee-owned.

·       Sellers who refuse in-person meetings or insist on digital-only communication.

·       Identification or signatures that don’t align with public records.

·       Contact information that can't be verified with local tax or utility offices.

Looking for more resources to fight against seller impersonation fraud? Check out this page from the American Land Title Association. No matter how careful you think you’ve been, if you still have any doubt that someone isn't who they say they are, let your TRN closer know. We'll do whatever it takes to make sure your transaction is clear to close and worry-free.

Reach out to one of our offices anytime! The Title Resource Network teams are here to help in Iowa and South Dakota in any way you need.