Fake Title Company Websites Fuel Real Estate Scam

ORLANDO, Fla. — Those who engage in fraudulent practices do so knowingly trying to trick or deceive an unsuspecting party. Fraud is not a new legal concept; it has been happening for eons but how it is being perpetuated is happening in new ways in the real estate market. Knowing what is happening in the industry will keep you from possibly being the next unsuspecting victim or representing the next victim.  

The latest fraudulent scheme involves creating a website that looks nearly identical to a legitimate title company’s site. With the website is established, the fraudster then opens a bank account in the company’s name using its Employment Identification Number (EIN) obtained from the Florida Division of Corporations. This forms the foundation of the scam even before any victims are contacted.

The fraudster then impersonates a property seller and contacts a Realtor® by text message or email. The scheme usually targets properties that are vacant, non-homesteaded or owned by someone absent from Florida. The Realtor helps find a buyer and negotiates and executes a sales contract. At this stage the fraudsters will insert their fraudulent title company with their banking information on the contract as the escrow and closing agent. The buyer then makes the escrow payment to a company they believe to be legitimate, but the funds end up in the fraudster’s account. The funds are gone, as are the seller and their title company.

This method of fraud is methodical and devious. It appears that the fraudster has a firm understanding of how title companies operate within the realm of real estate transactions and is exploiting it. This scheme is intentionally entrapping buyers. Ultimately the money is stolen, and with no real title company to turn to for help, the brokers in the transaction are the ones left taking the heat.  

What can you do to avoid being the next victim to this fraudulent scheme?

1. Be alert and watch for red flags. If a dream seller contacts you out of the blue looking to sell their property with terms that seem too good to be true, they probably are. Be wary of things like quick closings or if a seller has their own title company. Before taking such a listing talk to your broker and work with them to strategize next steps.
2. Slow down and communicate. If a seller is pushing to communicate via text or email only, it would be wise to vet the seller further to ensure you are dealing with the real seller. You could ask to meet via Facetime or in person to finish the paperwork. If the seller refuses, then you may want to walk away from this deal. If your brokerage has internal policies they prefer you to follow to avoid liability, defer to your company’s guidance.

If you have been a victim of fraud, what should you do?

Fraud is a crime. It is best to contact local law enforcement to report the fraud so it may be investigated.

In addition, Florida Realtors® is interested in tracking instances of this scheme. Please call the Florida Realtors Legal Hotline at 407-438-1409 to report instances you have encountered.

Wire fraud and email scams are not new, but this latest fraudulent scheme takes those schemes to a new level. Awareness is key in these situations. Be aware that this is out there so you can avoid it. Know what your brokerage policies are and report to local authorities when appropriate. Know that the industry is aware and wants to ensure this doesn’t continue to happen.

Heather Rhodes is Associate General Counsel.

Note: Information deemed accurate on date of publication.

© 2025 Florida Realtors®