Seller Impersonation (also called Deed Fraud) is on the rise in Arizona. If you own property in our great state, it is important to learn what deed fraud is and what tools are available for you to protect yourself. Pull up a chair (or bale of hay) and let’s get started.
What is Deed Fraud?
The criminal pretends to be an out-of-town property owner. They list the property, falsify all of the purchase/sales documents, impersonate a notary, and hit the trail with money once the property closes.
If you own property in Arizona, how can you protect yourself?
- County Recorder Alert Systems: By 2025 all counties in Arizona will be required to offer an owner notification system that alerts owners when a document is recorded that mentions the owner’s name. Owners must opt in.
- Learn the Red Flags:
☑️ The Property is non-owner-occupied (rented) or vacant
☑️ The Property is owned free and clear (no mortgage or liens)
☑️ The Seller claims to be out-of-state and will not meet in person
☑️ The Seller only communicates through email or text
☑️ The Seller has a different address than the property address or tax mailing address
☑️ The Seller wants a quick sale, price below market, and wants cash
☑️ The Seller insists using their own remote notary (BIG red flag)
☑️ The Seller wants the proceeds WIRED
- What additional precautions can you take to protect yourself?
☑️ Insist on contacting the Seller directly via phone
☑️ Mail the Seller at the property address or address on the tax records
☑️ Ask a real estate advisor if they know the Seller of the property (better yet, use a real estate advisor for your home purchase-I had to say it)
☑️ Require notarization be performed by vetted online notary or have the title company select a local notary
☑️ Verify the Seller through a third party service or verification program
☑️ Compare the Seller’s signature with those in public records
☑️ Use a wire verification service
☑️ Require a check for proceeds rather than a wire
Deed Fraud is here and it’s real. As your trusted global real estate advisor with a legal background, I am prepared to educate you and assist you in the steps you need to take to protect yourself and your Arizona property.