“Whether Compensation is Paid to Buyer’s Broker”

​In this section, the Seller selects how they would like their agent to respond when a Buyer’s agent asks about Compensation.

This new format provides Seller the option to be open to receiving offers where Seller pays Compensation to Buyer’s Broker or to not market Compensation at all.

Value of Services Provided

The language in the Buyer Brokerage Agreements has been amended to emphasize the value of the services provided. The value of your services shouldn’t change depending on who is paying the Compensation, so the Buyer’s agent cannot accept any Compensation greater than the amount the Buyer is obligated to pay.

This form allows you to open the door for a potential Buyer and remain compliant with the NAR Settlement, which requires an agreement before you show a home.
Warning! This new form does not provide for Compensation!

HOW TO RECOGNIZE AND AVOID VACANT LAND FRAUD!
FRAUDSTERS are impersonating property owners to illegally sell commercial or residential property. Sophisticated fraudsters are using the real property owner’s Social Security and driver’s license numbers in the transaction, as well as legitimate notary credentials, which may be applied without the notary’s knowledge.
Fraudsters prefer to use email and text messages to communicate, allowing them to mask themselves and commit crime from anywhere.
Due to the types of property being targeted, it can take months or years for the actual property owner to discover the fraud. Property monitoring services offered by county recorder’s offices are helpful, especially if the fraud is discovered prior to the transfer of money.
Where approved by state regulators, consumers can purchase the American Land Title Association (ALTA) Homeowner’s Policy of Title Insurance for additional fraud protection.
WATCH FOR RED FLAGS!!
■ Lack of a Physical Structure - Is vacant or non-owner occupied, such as investment property, vacation property, or rental property?
■ Owner Address – Does the property have a different address than the owner’s address or tax mailing address?
■ Properties Without Mortgages – Does the property have an outstanding mortgage or lien?
■ Sold Below Market Value – Is the property selling below market value?
CONSIDER HEIGHTENED SCRUTINY OR HALT A TRANSACTION WHEN A SELLER:
■ Wants a quick sale, generally in less than three weeks, and may not negotiate fees
■ Wants a cash buyer
■ Is refusing to attend the signing and claims to be out of state or country
■ Is difficult to reach via phone and only wants to communicate by text or email, or refuses to meet via video call
■ Demands proceeds be wired
■ Refuses or is unable to complete multifactor authentication or identity verification
■ Wants to use their own notary
CLOSING ATTORNEYS TAKE PRECAUTIONS DUE TO SELLER FRAUD ISSUES INCLUDING SOME OR ALL OF THE FOLLOWING:
 
CONTACT SELLER USING INDEPENDENT SOURCES
■ Contact the seller directly at an independently discovered and validated phone number
■ Mail the seller at the address on tax records, property address, and grantee address (if different)
■ Ask the real estate agent if they have personal or verified knowledge of the seller’s identity
MANAGE THE NOTARIZATION
■ Require the notarization be performed by a vetted and approved remote online notary, if authorized in your state
■ If remote online notarization is not available, the title company should select the notary. Examples include arranging for the seller to go to an attorney’s office, title agency, or bank that utilizes a credential scanner or multifactor authentication to execute documents
VERIFY THE SELLER’S IDENTITY
■ Send the seller a link to go through identity verification using a third-party service provider (credential analysis, KBA, etc.)
■ Run the seller’s email and phone number through a verification program
■ Ask conversational questions to ascertain seller’s knowledge of property information not readily available in public records
■ Conduct additional due diligence as needed
USE THE PUBLIC RECORD
■ Compare the seller’s signature to previously recorded documents
■ Compare the sales price to the appraisal, historical sales price, or tax appraisal value
CONTROL THE DISBURSEMENT
■ Use a wire verification service or confirm wire instructions match account details on seller’s disbursement authorization form
■ Require a copy of a voided check with a disbursement authorization form
■ Require that a check be sent for seller proceeds rather than a wire
Info from www.alta.org
Now more than ever, consumers need to be aware of potential scams and how to best protect themselves. Real estate agents and attorneys must also play a key role in educating both homebuyers and homeowners about the need to remain vigilant. If the closing attorney is asking for extra precautions to verify a home seller, it is the duty of the agents involved to educate their clients about why this is necessary.
Attorneys are agents of the title insurance company, so they are required to act within their underwriting requirements. For sellers, if they are given any indication that a seller might not be the actual owner of the property, or if their identity cannot be verified, they are not permitted to do a mail-away closing until the legitimacy is verified. That could require an in-person closing.
Since attorneys are agents of the title insurance company, they are required to act within their underwriting requirements and if they stray from those, they are liable for the fallout.
For sellers, if they are given any indication that the seller might not be the actual owner of the property then they are not permitted to do a mail-away closing until they verify the legitimacy of their identification.
How can Real Estate Agents Identify and Prevent Vacant Land Fraud?

1. Look the owner up online and include obituary searches. Almost everyone has some online presence, particularly if they have passed away. The fraudster may not know the record title holder is deceased since title rarely changes until there is a refinance or sale of the property.
2. Ask the “seller” to meet you at the property to get a lay of the land and ask for photo ID pursuant to your company policies but do NOT go to the property alone.
3. Be alert to the warning signs above. Ask why the seller is looking to close so quickly. Agents must remain calm and encourage their clients to undertake proper due diligence before committing to any purchase. Any discrepancies or red flags should be investigated further.
4. Use a closing attorney that you know and trust. Share any concerns you have with the closing attorney.

Vacant land real estate fraud poses significant risks to both agents and potential buyers. It’s crucial for agents to stay vigilant and be aware of the warning signs associated with such fraudulent activities. By conducting thorough research, verifying property details, and involving legal professionals, when necessary, agents can protect themselves and their clients from falling victim to vacant land real estate fraud. Ultimately, the key lies in being diligent, knowledgeable, and relying on trustworthy sources throughout the entire real estate transaction process.
Info from Cheryl King w/Thomas & Brown
For Additional Info:
https://www.alta.org/news/news.cfm?20230124-Wire-Fraud-Advisory-Vacant-Property-Fraud
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