A
real estate inquiry started like many others, with a seller expressing interest in selling a piece of vacant land. However, licensed realtor Katie Hanner's intuition kicked in when the seller refused to meet in person or take phone calls. Upon visiting the property, she discovered that the land was owned by someone else and had been hijacked by title pirates - scammers who steal property ownership for quick, illegal sales.

    Title pirates often target investors buying up land, out-of-town buyers making sight-unseen purchases, or those looking to buy a lot for a new-build home. Vacant land, second homes, rental properties, or any home where the owner isn't actively present are prime targets. These scammers grab information from public records, fake signatures, pay off sketchy notaries, and file fake deeds.

    Title fraud is on the rise, with over 9,500 complaints in 2023, according to the FBI Internet Crime Report. Scammers use AI to generate fake documents that are harder to detect, making it essential for title insurers to stay educated on the latest techniques.

    Red flags of this property-selling scam include:

    * A seller who refuses to meet in person or provide details about the property

    * Unlicensed "agents" claiming to represent the seller

    * Low sale prices that seem too good to be true

    * Sellers who are unwilling to verify information or follow standard procedures

    To stop title pirates, real estate professionals must slow down and ask questions scammers don't want them to ask. This includes insisting on phone calls and video verification, verifying identities through multiple sources, comparing signatures with county records, and involving trusted title companies that know what to look for.

    If a seller pushes back or refuses to follow standard procedures, it's a deal-breaker. By being vigilant and asking the right questions, real estate professionals can prevent title pirates from stealing property ownership and protect buyers from financial losses.