For some, buying a home is the ultimate goal in life that represents stability. While the process can be fun and exciting, it comes with some challenges. The final step to ensure your rights to a property is to sign a document and make it legally binding.
Notaries and Signing Agents help buyers to complete such purchases by guiding them through the signing process. Without the advice, it’s easy to fall into the wrong hands. Unfortunately, not all buyers have good intentions.
The greatest issue remains that criminals find new ways to impersonate everyone who’s involved in a real estate transaction, including buyers and sellers. For this reason, verifying the identity of the signer is absolutely essential.
The role of a notary
Notaries act as impartial witnesses to a transaction. They are public officials commissioned by their state governor to verify a signer’s identity. Notaries are also responsible for administering oaths, taking acknowledgments of legal documents, and performing certification duties.
To avoid legal trouble and guarantee the property owner’s rights, the notary and the professionals involved in the real estate transaction must execute these documents very carefully. A notary stamp is added as well to assure validity. During a real estate closing, critical loan documents are signed, notarized, and safely recorded in the system.
Fake deeds
Many fraudulent documents contain one or more falsified details. The authorized representative must sign all real estate deeds to ensure security. Criminals forge signatures, use a made-up name, or pose as the owner’s personal representative. Some use fake identities and try to pose as the real estate owner to sign the deed in front of the notary.
Criminals attempt to steal properties by falsifying and recording fake deeds. While this type of real estate fraud is the perfect crime for fraudsters, it’s terrifying for the victims. Filing a fake deed can result in victims fighting to keep their own homes. That’s why notarizing documents helps prevent identity theft and deter fraud.
Scammers target wisely
Typically, fraudsters choose their victims and target specific people. For instance, scammers select senior citizens who own their homes or second properties that show some signs of neglect with the goal to complete a blank feed showing the property owner is transferring the home to someone else. Sometimes, criminals live in the house, rent the property or even flip the house and sell it.
Usually, the fraud occurs when the property owner moves into an elderly care facility, dies or when the house remains unoccupied for a longer period. For this reason, vacation homes, unoccupied houses, and homes that are left behind mortgage payments or taxes are the best targets for criminals who want to steal a house via a false deed.
The main warnings
Each country or state has its own rules for real estate transactions. For example, some states need to have an attorney be present, limiting who can handle types of loan products for security reasons. That’s why it’s essential to prepare for the process of verifying the signer.
There are some red flags that expose higher chances of money laundering and property fraud. If the only details a party lists are their phone and email address, or there are changes made to the client’s details during the process, you should be alert to the possibility of fraud.
There are some suspicious clients out there as well. If the property has been owned for a long period, but the client who’s selling is a lot younger than you would expect, or if they ask you to register a different address, that’s suspicious behavior that might be leading to property fraud.
Secure signing process
To eliminate money laundering or property fraud suspicions, and prevent all sorts of criminal activity, the signing process needs to be secured with identity verification.
In a traditional scenario, identity verification forms are used to verify the identity of an individual. Notaries compare the photo identification to the name on the document to confirm that the person who’s signing is the same person on the ID document.
Digital ID verification
The pandemic accelerated the trend for businesses to move to the digital sphere. More people choose to handle their business transactions online. Notaries were quick to adapt and offer their services online. This change requires some alterations process-wise, including the signers’ identity verification.
More e-notary institutes choose to implement digital ID verification solutions that use artificial intelligence to scan and verify identities quickly. The fully automated ID verification minimizes human error and allows companies to treat their customers with confidence.
Find out more about the innovative biometric confirmation and identity verification that’s crucial to perform online notarization via idenfy.com.
