Seller Impersonation Fraud: What Buyer Agents Need to Know

By: Dillian V. Hecht, Deputy Legal Counsel

Seller impersonation fraud continues to affect real estate transactions, particularly those involving vacant land, inherited property, abandoned homes, and remotely owned property. Scammers are becoming increasingly sophisticated, using forged identification, stolen owner information, fake notarizations, and even AI-generated video to impersonate legitimate property owners.

While listing agents are often on the front line of verifying a seller’s identity, buyer agents should not assume that a property is legitimate simply because it is listed in the MLS or because the listing agent represents that the seller has been verified.  Buyer agents have their own responsibility to exercise reasonable skill, care, and diligence in protecting their clients. When the circumstances of a transaction present warning signs of seller impersonation fraud, simply relying on assurances from the listing side may not be enough.  Here’s what buyer agents need to know:

1. Recognize the Red Flags

Seller impersonation scams frequently share common characteristics. No single circumstance necessarily establishes fraud.  Buyer agents should pay particular attention when a transaction involves:

• Vacant or unimproved land;
• An absentee or out-of-state owner;
• A property priced significantly below market value;
• An all-cash transaction;
• An unusually quick closing;
• A seller who communicates only electronically;
• An unusually large due diligence fee;
• Requests to wire due diligence funds directly to the seller;
• A seller who avoids receiving a check or other payment through traditional means; or
• Other unusual urgency surrounding the transaction.

2. Don’t Just Rely on the Listing Agent

A buyer agent should not ignore suspicious circumstances simply because the listing agent says the seller has been verified. Instead, ask how that verification occurred.

Questions may include:

• Have you met or spoken with the seller live on videoconferencing such as Zoom?
• How was the seller’s identity verified?
• Was the seller’s ID compared to public records?
• Has the seller signed documents in person before a notary or attorney?
• Has anyone physically visited the property in preparation for listing?
• Did the seller provide ownership documentation?
• Are there any concerns regarding impersonation or identity verification?
• Has the closing attorney raised any issues?
• Was the property recently listed or withdrawn under another brokerage?

The answers matter. For example, a statement that the seller’s name “matched the tax records” provides little protection when a scammer can obtain the same information from public records.  Likewise, the fact that the listing agent received a copy of an identification document does not necessarily resolve the issue. Identification can be stolen, altered, or fabricated.

3. Respond to What You See

Buyer agents are not expected to become identity-verification experts or independently prove that every seller owns the property. They are, however, expected to recognize and respond appropriately to information that would cause a reasonably prudent broker to question the legitimacy of a transaction.

Consider a vacant lot owned by someone who lives out of state. The property is offered below market value, the seller wants a quick cash closing, and the seller requests a substantial due diligence fee to be wired directly to them. Even if the listing agent states that the seller has been verified, those circumstances should prompt additional scrutiny before the buyer sends money.

Depending on the circumstances, the buyer agent may need to ask additional questions, involve the closing attorney, recommend further verification, or advise the buyer of the potential risk before the buyer proceeds.

4. Encourage Buyers to Use Reputable Closing Professionals

Early legal involvement can often uncover issues before funds are transferred.  Buyer’s agents should strongly encourage:

• Experienced real estate attorneys
• Reputable title companies
• Enhanced title review
• Wire fraud prevention procedures
• Verification of seller identity before closing

5. Final Thoughts

Seller impersonation fraud is no longer rare, and no single verification step is enough. Real estate professionals should regularly discuss fraud prevention in office meetings, onboarding programs, and continuing education. In today’s market, vigilance is no longer optional; it is part of competent representation.

In addition to this eBulletin, please review Preventing Seller Impersonation Fraud in Residential and Commercial Transactions, published in September 2025.