A New Kind of Real-Estate Fraud
After thirty years in law enforcement, I’ve seen every kind of fraud under the sun—from bad checks to exotic scams that would make a Nigerian prince blush. But the newest one making the rounds in real estate deserves its own category: seller impersonation fraud.
It’s clever, it’s quiet, and it can unravel a deal faster than you can say “title commitment.” In short, someone pretends to be the legitimate property owner, sells the land, collects the proceeds, and disappears before anyone realizes what happened.
A True Story That Hit Close to Home
A few weeks ago, a title company executive shared this story with me. She and her team were handling a simple vacant-lot sale when things started to feel… off.
“A person impersonated the owner of a vacant lot (had a fake ID), and tried to sell the property as his own. He stole a notary stamp from someone, and got the docs notarized independently. We said that we needed to schedule the notary ourselves, and the closing fell through because he refused to move forward with a new notary. A few weeks later, another title company reached out and said the property was sold, but the actual property owner called to complain because they hadn’t sold the property.”
That one decision—to control the notary—stopped the fraud in its tracks. The scammer moved on, but not before proving how close these schemes can come to succeeding.
How Seller Impersonation Works
Fraudsters love real estate because the data they need to commit seller impersonation fraud is sitting out there in the open”. County websites publish deeds, owner names, and legal descriptions—essentially a menu for criminals.
According to the FBI’s Newark Field Office, these crimes often begin when fraudsters contact realtors pretending to be out-of-state owners of vacant lots. They push for all-cash, quick closings and use fake IDs, forged notary seals, and convincing documents to look legitimate. The real owner usually discovers the fraud only after the land has been sold.
Here’s the playbook they’re running:
Pick the target. Usually vacant land or mortgage-free property owned by someone living far away.
Create the identity. Fake driver’s license, stolen notary stamp, or both.
List and push the sale. Below-market price, cash buyer, and an urgent timeline.
Bypass verification. They insist on using their “own” notary or skip ID checks.
Get the payout. Check or new account, then vanish.
The clever part? They avoid legitimate Remote Online Notarization (RON) because they know they’ll fail the credential analysis and biometric checks. Our systems catch what a forged plastic ID can’t hide.
A Second Real Example Worth Noting
In 2024, the FBI’s Newark field office warned of a wave of nearly identical scams. Fraudsters were “selling land out from under owners” by listing properties as if they were the owners, producing fake IDs, and moving to close quickly before anyone asked questions. These weren’t luxury homes—they were vacant lots and out-of-state parcels, exactly the kind of property most people don’t watch closely.
The takeaway: this isn’t theoretical. It’s happening nationwide, and it’s hitting the exact type of property that slips under everyone’s radar.
Why Proper RON Is the Best Defense
When done right, RON isn’t a convenience—it’s armor. On a vetted platform like the one we use at Florida Document Specialists, every signer must:
Pass credential analysis of their government ID.
Complete biometric and liveness verification to prove they’re physically present.
Appear on a recorded video session that produces a permanent, tamper-evident audit trail.
Work with a vetted notary, verified in real time.
That’s exactly why seller impersonation fraud fails when proper verification systems are in place.
The Bureau’s warning shouldn’t be confused with legitimate Remote Online Notarization. Proper RON, when conducted with credential analysis, biometric checks, and a recorded session, is precisely the kind of verification the FBI encourages—because it forces a would-be impersonator to prove who they really are.
What “Proper RON” Is — And What It Isn’t
Proper RON is a controlled workflow, not a gig-economy free-for-all. It means you know exactly who the notary is, how the identity checks are performed, and where the recording and audit trail live. It’s credential analysis, biometrics, a recorded session, and a vetted notary you can actually call by name. In other words, it’s a process you can defend when something smells off.
What it isn’t: a national “call-center” model where a platform spends a fortune on ads to rank high, then farms your signing to whichever subcontract notary happens to click “accept.” In that world, many notaries are chasing a queue, not stewarding a transaction. The going rate can be a handful of dollars per job—think five to seven bucks—so the incentive is speed, not scrutiny.
Another issue these conglomerate platforms don’t mention: their “notary pool” spans every state that allows RON, each with radically different statutes and rules. Because assignments are essentially pot-luck, you might not even know which state’s law governs your notarization until you’re face-to-face on camera with the remote notary. That means a Florida real-estate document could end up governed by notarial law from Texas, Virginia, or Arizona—each with its own standards for ID, recordkeeping, and certificate wording. It’s inconsistent, unpredictable, and risky.
That is not a proper notary in the context of preventing impersonation. When the pay model rewards volume, you get volume. When the workflow rewards verification, you get verification. If you’re serious about blocking seller impersonation, insist on a platform-vetted RON session with an identified, accountable notary operating under the jurisdiction you expect, with a full audit trail you can keep. Middlemen who can’t (or won’t) tell you who’s actually performing the notarization aren’t selling security—they’re selling convenience with a side of risk.
Red Flags You Can’t Afford to Miss
- Seller lives out of state or “can’t appear on video.”
- Seller insists on using their notary.
- Seller requests proceeds by check instead of the escrow method already in place.
- Seller claims to be abroad, hospitalized, or otherwise unable to appear in person—an excuse the FBI says is one of the most common used by impersonators.
- Property is vacant or long-abandoned.
- The deal is “too good to be true” and “must close this week.”
- Seller dodges video calls or live questions about the property.
When two or more of these line up, it’s time to slow down and dig deeper. You’ll never regret the deal you didn’t rush.
Checklist for Title Agents — Stopping the Impersonator Before They Strike
Verification Steps
☐ Independently verify the seller’s identity using a trusted source.
☐ Use a vetted RON provider for ID analysis, biometrics, and recording.
☐ Match verified ID details against property records (name, mailing address, tax info).
☐ Compare the photo ID to previous file records, if available.
Transaction Behavior to Review
☐ Watch for last-minute requests to change the notary or signing method.
☐ Treat “check disbursements” as suspicious unless fully justified.
☐ Ask basic ownership questions—real owners can easily confirm details about their parcel.
☐ Require a live conversation or video session before funding.
☐ Verify notary credentials directly through the state database if anything looks off.
Internal Safeguards
☐ Maintain an incident log of attempted impersonations (helps spot patterns).
☐ Flag any “seller-provided” notarizations for supervisory review.
☐ Partner with your RON provider to ensure reports, IDs, and recordings are archived for future reference.
☐ Train your staff regularly; this scam evolves every few months.
A five-minute call or a properly executed RON session can save months of litigation and thousands of dollars in losses.
How Florida Document Specialists Helps Keep the System Honest
At Florida Document Specialists, our Remote Online Notarization process includes real-time credential analysis, biometric verification, and a recorded session—handled by trusted, Florida-commissioned notaries. Every session generates a detailed audit trail that title companies can retain as part of their closing file.
When combined with our eRecording services, that chain of custody continues all the way through to the county’s official records. Nothing is left to chance—or to “somebody’s cousin who happens to be a notary.”
The Last Laugh Belongs to the Careful
Fraudsters are resourceful, but they’re also lazy. They look for weak links—unverified notaries, rushed closings, and professionals too polite to question a sketchy situation. The good news? Tight procedures, careful ID checks, and proper RON make their job miserable.
As someone who’s chased more con artists than I can count, I’ll tell you this: you don’t need to be paranoid—you just need to be alert. The next time a “seller” bristles at verification, smile politely and remember: the honest ones never mind proving who they are.
If You Think You’re a Victim
If you discover that your property may have been sold or transferred without your knowledge, contact law enforcement immediately. Start with your local police department and then reach out to the nearest FBI Field Office or file a report at www.ic3.gov.
If a title company was involved in the fraudulent transaction, notify them right away so they can coordinate with investigators and flag any related insurance or escrow records. Quick action can make all the difference in preventing further loss.
John Bayne
Co-Founder & CEO | Florida Document Specialists
📞 (386) 218-2523
📧 john@floridadocument.com
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