WIRE FRAUD- Warning, a new scam on investors

Buying & Selling Real Estate
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WIRE FRAUD- Warning, a new scam on investors

Kelly N.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes

Hello BP-

We are currently under contract to buy a house, and I received an e mail Friday that appeared to come from my realtor stating that the Title Company needed me to wire funds that day to make sure the closing went smoothly.  My realtor shouldn't have anything to do with the deposit, and the wording didn't sound like my realtor, so I quickly confirmed that this was a scam.  He had hacked into my realtor's e mail where he was able to get information on our recent sales agreement and who knows what else.  He then created a similar e mail address to my realtor's and used that to contact me- I didn't even realize it wasn't one of his usual addresses until today.  He had reasons for everything- the wire transfer had to be early b/c the title company was undergoing an audit and wouldn't be able to clear a check for closings from April 15-May 1, not to call him since he was attending a closing, and he even gave a plausible answer when I asked him where the closing would be- he happened to pick the only title company we have used in that city, maybe by finding it in the e mails from past dealings or maybe since it is the closest one to my realtor's address.  The amount requested seemed off at first, then I realize it was the 25% down on the property less the earnest money I had dropped off that day at the realtor's office.  

I told him I wired the money Friday (of course, I didn't) and he has been bugging me for a picture of a receipt since then and wanting to know when the funds would be deposited.  I told him that it takes 24 hours, or one full business day, so he is on pins and needles likely stalking his account balance today, and I have so far ignored his requests for a receipt "for his records".


I have talked to the local police (here) who can't do anything since I didn't transfer funds.  I talked to the bank they are using, who may have flagged their account for fraud but of course can't tell me anything.  My realtor reported the security breach to google since it was a gmail account created to appear to be him, along with the service provided for the account that got hacked.  Lastly, I talked to the local county sheriff's department who is going to go talk to the business owner for the address given in the wiring instructions.   If anyone else has any ideas of who else this can be reported to, please let me know!

So, mainly a warning to all that if it doesn't seem right, it probably isn't.  We were just a a closing last week and that title company mentioned that they don't deal with wires anymore due to the vast amount or fraud going on.   

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Jeff S.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
7y

It’s sad that this crap happens, @Kelly N., but it’s not new. Once you realize you’re being pursued by a scammer, it’s best not to communicate with them. Wire fraud, which is often an interstate or international crime, is something that the FBI would be more interested in than your local police or sheriff, who likely have neither the resources nor expertise to investigate.

I am confused about where you were told to wire the funds. No matter, you should never wire to anyplace other than a verified title company. Not to an agent, escrow, attorney, or anyone else. And, on its face, never believe anything you see in an email -- not even a phone number. I think you just figured that out.

We always look the local phone number up online and call title to verbally confirm the written wire instructions. We use escrow companies in CA and I call them for verbal confirmation too. All phone numbers and all wire instructions have to match, among multiple sources. If there are any discrepancies between what I am told verbally and what I read, then I STOP. There’s the occasional confusion, usually spawned by my paranoia, but fortunately we have never had a problem.

When I wire money in person at Wells Fargo, they always ask me if I confirmed the wire instructions. Strangely, they never ask how and have never offered any advice. I wish they would.

It’s interesting that a title company told you they don’t deal with wires anymore. Can’t say I’m surprised, but what are their alternatives? Short of delivering a pile of greenbacks, cashier’s checks can be forged, and it can take days to realize this. Are they holding up closings to wait?

Many title and escrow companies are now using secured email to cut down on this nonsense. Realtors should start doing the same. As someone who regularly wires large sums, one option I have it to simply refuse to do business with anyone who uses bad practices. Unfortunately, this only stays a step ahead of the crooks and there no great solutions that are obvious (to me at least).

Good that you dodged a bullet Kelly.

I’m curious what others are doing here to protect themselves from wire fraud???

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  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    7y

    It’s sad that this crap happens, @Kelly N., but it’s not new. Once you realize you’re being pursued by a scammer, it’s best not to communicate with them. Wire fraud, which is often an interstate or international crime, is something that the FBI would be more interested in than your local police or sheriff, who likely have neither the resources nor expertise to investigate.

    I am confused about where you were told to wire the funds. No matter, you should never wire to anyplace other than a verified title company. Not to an agent, escrow, attorney, or anyone else. And, on its face, never believe anything you see in an email -- not even a phone number. I think you just figured that out.

    We always look the local phone number up online and call title to verbally confirm the written wire instructions. We use escrow companies in CA and I call them for verbal confirmation too. All phone numbers and all wire instructions have to match, among multiple sources. If there are any discrepancies between what I am told verbally and what I read, then I STOP. There’s the occasional confusion, usually spawned by my paranoia, but fortunately we have never had a problem.

    When I wire money in person at Wells Fargo, they always ask me if I confirmed the wire instructions. Strangely, they never ask how and have never offered any advice. I wish they would.

    It’s interesting that a title company told you they don’t deal with wires anymore. Can’t say I’m surprised, but what are their alternatives? Short of delivering a pile of greenbacks, cashier’s checks can be forged, and it can take days to realize this. Are they holding up closings to wait?

    Many title and escrow companies are now using secured email to cut down on this nonsense. Realtors should start doing the same. As someone who regularly wires large sums, one option I have it to simply refuse to do business with anyone who uses bad practices. Unfortunately, this only stays a step ahead of the crooks and there no great solutions that are obvious (to me at least).

    Good that you dodged a bullet Kelly.

    I’m curious what others are doing here to protect themselves from wire fraud???

    5Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    7y

    Kelly, you could not have handled this better.  

    And, thank you for sharing your story. Unfortunately, it's a common occurrence.  I tell my clients on the first day we meet that wire instructions will only come from the title/closing agent as encrypted documents and that they will need to look-up the phone number for the title company before calling to confirm the instructions were sent and are accurate.  Once a wire is sent, there's no getting it back.  In 2017 alone, $1 Billion in real estate transactions were a target of wire fraud according to the FBI.  The best route to report these incidents is to the local FBI office.  

    Again, great job, Kelly and congratulations on your new home.

    2Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    7y

    This type of fraud is quite common nowadays.  I actually know of someone that was buying a house and was personally victimized by a scam like this.  It's so common that the California Association of Realtors actually created a separate disclosure form for it (Wire Fraud and Electronic Funds Transfer Advisory).

    Usually when I hear of this scam it's the escrow/title officer's email that's being hacked since that's where the wiring instructions would normally come from.  I've been the lender on deals, and whenever I receive wiring instructions emailed to me those emails always come encrypted from the escrow officer.  However, I STILL call the known phone number I have for the escrow officer and personally speak to him/her and confirm the account number.  Can't be too careful.

    1Reply
  • Kelly N.
    OP
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    @Jeff S.- I was told to wire the funds to a trucking company in Cloverdale, CA.  The wire details he provided had the company/account holder name, address, routing and account numbers.  He said it was the title company.

    We were closing on a refinance loan last week, and the agent at the title company had asked if we were expecting the funds in a check or if we were expecting a wire.  I said I expected a check, I hadn't realized wiring it was an option but I preferred a check anyways, and he said they don't deal with wires anymore- maybe he only meant for when clients are receiving funds from a refi?  I am not sure, I wasn't interested at the time so I didn't ask.  I am interested to see how the closing companies are handling things now- we haven't purchased since 2015, never used the same title company twice but they have always asked for Certified Funds and I have always brought a Cashier's check.  Maybe they call the bank to verify before they close?  

    Every other closing I have been at, we have been told by the title company directly how much we owe and who to make the cashier's check out to.  I am not sure if they have ever offered to allow me to do a wire transfer instead, a cashiers check is easy, fast, and free.  I don't remember if they used secured e mails all the time, but I suppose that's likely, just not a detail I would recall.  I hope they still allow that, I wouldn't be comfortable hauling around a large amount of cash!

    @Patricia Steiner- thanks, but it's not a done deal yet- we found a discrepancy in the square footage of the house so we will see if they are willing to reduce the price or not.  I reported it to the FBI online, so thanks, I had not thought to look up who wire fraud (or attempted wire fraud) should be reported to.

    1Reply
  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    7y

    “I was told to wire the funds to a trucking company in Cloverdale, CA.”

    So, what was your first clue that this might not be legit, @Kelly N.?

    Yes, we fund majority of our deals through trucking companies. Pretty common. Ha. This would actually be hysterical if it weren’t for what this idiot was trying to do to you.

    @Kyle J. wrote – “… whenever I receive wiring instructions emailed to me those emails always come encrypted from the escrow officer. However, I STILL call the known phone number I have for the escrow officer and personally speak to him/her and confirm the account number.”

    We do the same, but only as a backup.  Escrow receives this info from the title company and not everyone uses encrypted email. If anyone between title and escrow was hacked, then escrow will unknowingly be confirming bogus information to you.  We always go to the source, title, and verbally confirm everything with them.  Then we pray.

    “Can't be too careful.”

    Indeed, Kyle.

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  • Kelly N.
    OP
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    @Jeff S.- the first few e mails almost sounded legit.  Almost.  My realtor isn't the one who should be sending me wiring instructions, and I know my realtor well and the tone of the e mails just wasn't right.  He sent the wire instructions later in a separate e mail (I told him to hurry, I had to get to the bank before I picked my kids up from school), the company name associated with the account was pretty non specific- for example "XYZ Sales"- could MAYBE, possibly, by some stretch be a title company, or something else associated with real estate.  I googled the company name and came up with a company that charters, sells, and repairs semis, and from a google earth image of the address that appears accurate.

    Some dude in California is currently awaiting his payday, which isn't coming.  I am hoping a knock on the door from the sheriff or the FBI comes first.  I am tempted to send him a picture of my middle finger next time he asks for a picture of the wire receipt.  After the last one, I told him to not contact me until the title company said they had the funds- I am on vacation.  

    1Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    7y
    Originally posted by @Jeff S.:

    We do the same, but only as a backup.  Escrow receives this info from the title company and not everyone uses encrypted email. If anyone between title and escrow was hacked, then escrow will unknowingly be confirming bogus information to you.  We always go to the source, title, and verbally confirm everything with them.  Then we pray.

    Jeff S. – Private Lender in Los Angeles

    In Northern California escrow and title are actually handled in the same office so it's just one call for me to the escrow officer since that person handles the entire transaction.  I understand the process is different in Southern California though and you guys have separate escrow and title offices, so what you're saying sounds like the way to go down there. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kelly N.:

    @Jeff S.- I was told to wire the funds to a trucking company in Cloverdale, CA.  The wire details he provided had the company/account holder name, address, routing and account numbers.  He said it was the title company.

    We were closing on a refinance loan last week, and the agent at the title company had asked if we were expecting the funds in a check or if we were expecting a wire.  I said I expected a check, I hadn't realized wiring it was an option but I preferred a check anyways, and he said they don't deal with wires anymore- maybe he only meant for when clients are receiving funds from a refi?  I am not sure, I wasn't interested at the time so I didn't ask.  I am interested to see how the closing companies are handling things now- we haven't purchased since 2015, never used the same title company twice but they have always asked for Certified Funds and I have always brought a Cashier's check.  Maybe they call the bank to verify before they close?  

    Every other closing I have been at, we have been told by the title company directly how much we owe and who to make the cashier's check out to.  I am not sure if they have ever offered to allow me to do a wire transfer instead, a cashiers check is easy, fast, and free.  I don't remember if they used secured e mails all the time, but I suppose that's likely, just not a detail I would recall.  I hope they still allow that, I wouldn't be comfortable hauling around a large amount of cash!

    @Patricia Steiner- thanks, but it's not a done deal yet- we found a discrepancy in the square footage of the house so we will see if they are willing to reduce the price or not.  I reported it to the FBI online, so thanks, I had not thought to look up who wire fraud (or attempted wire fraud) should be reported to.

    Well at least he picked a pretty part of sonoma county Cloverdale is a nice little town north of Santa Rosa.. its were 101 freeway just about stops.. 

    we wire 1 to 5 wires a day.. we have a process..  I take it a step further if its a closer we have never worked with..  I will call or one of my staff will call.. we will google earth it.. and say  HEY is that a Mcdonalds on the corner by your office.. ( when i know its a taco bell) once i get by that strange request ( many times its the secretary or escrow assistant ) I make them go grab the file and read off Line 1250 of the hud so on and so forth..  We have been phished twice and caught them both times.. for us it was rehab draws and our borrowers e mail stating they changed accounts.. that is a HUGE red flag. 

    It may just come back to buyers have to use personal checks and get them into escrow a few weeks in advance so they clear the bank. 

    as stated above escrow stopped taking cashiers checks because of forgery..  but closeing standards are quite lose in some jurisdictions I have been at a closing were a buyer used a personal check the attorney then cut checks right on the spot out of his trust account.. I am like DUDE what if that guys checks bounced you will be out of Trust you seriously accept a check and then settle and escrow on the spot.. I was amazed. 

    Great job hounding this down.. more we bring it to light the safer the public will be.. but think about the avearge buyers of RESI homes maybe they buy a home once every 10 years .. they are not investors so easy to fool. Its up to real estate agents and Brokers to forcefully inform their buyers and sellers of these issues.. its starts with the MLS and Board of realtors and then the managing brokers need to get on their agents.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kelly N.:

    @Jeff S.- the first few e mails almost sounded legit.  Almost.  My realtor isn't the one who should be sending me wiring instructions, and I know my realtor well and the tone of the e mails just wasn't right.  He sent the wire instructions later in a separate e mail (I told him to hurry, I had to get to the bank before I picked my kids up from school), the company name associated with the account was pretty non specific- for example "XYZ Sales"- could MAYBE, possibly, by some stretch be a title company, or something else associated with real estate.  I googled the company name and came up with a company that charters, sells, and repairs semis, and from a google earth image of the address that appears accurate.

    Some dude in California is currently awaiting his payday, which isn't coming.  I am hoping a knock on the door from the sheriff or the FBI comes first.  I am tempted to send him a picture of my middle finger next time he asks for a picture of the wire receipt.  After the last one, I told him to not contact me until the title company said they had the funds- I am on vacation.  

    The guy is either in the Eastern block the Caribbean  middle east or AFrica.. those stolen wires bounce into those accounts and are off shore in a matter of minutes..  GREAT JOB protecting yourself.. the broken english is a dead give away

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  • Kelly N.
    OP
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    @Jay Hinrichs- to be clear, his English is fine.  He (I am assuming it's a he) used words you would expect to hear, maybe a little hurried but if he were truly at a closing and typing this on his phone it could be plausible.  Here's the first e mail:

    "I got an update from Title company concerning the balance closing funds, they want you to wire the balance funds of $XX,XXX today to enhance a smooth transaction and to avoid any form of delay at closing.

    If there is cancellation of contract your funds will be wired back to you, This is just to enhance a smooth transaction and to avoid any form of delay at closing.

    I'm presently at closing now please let me know if you can get the funds wired today so that I can forward you their company trust account details .

    Please send me an email if you have any question am at closing.

    Thank You!"

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    7y
    Originally posted by @Kelly N.:

    Hello BP-

    We are currently under contract to buy a house, and I received an e mail Friday that appeared to come from my realtor stating that the Title Company needed me to wire funds that day to make sure the closing went smoothly.  My realtor shouldn't have anything to do with the deposit, and the wording didn't sound like my realtor, so I quickly confirmed that this was a scam.  He had hacked into my realtor's e mail where he was able to get information on our recent sales agreement and who knows what else.  He then created a similar e mail address to my realtor's and used that to contact me- I didn't even realize it wasn't one of his usual addresses until today.  He had reasons for everything- the wire transfer had to be early b/c the title company was undergoing an audit and wouldn't be able to clear a check for closings from April 15-May 1, not to call him since he was attending a closing, and he even gave a plausible answer when I asked him where the closing would be- he happened to pick the only title company we have used in that city, maybe by finding it in the e mails from past dealings or maybe since it is the closest one to my realtor's address.  The amount requested seemed off at first, then I realize it was the 25% down on the property less the earnest money I had dropped off that day at the realtor's office.  

    I told him I wired the money Friday (of course, I didn't) and he has been bugging me for a picture of a receipt since then and wanting to know when the funds would be deposited.  I told him that it takes 24 hours, or one full business day, so he is on pins and needles likely stalking his account balance today, and I have so far ignored his requests for a receipt "for his records".


    I have talked to the local police (here) who can't do anything since I didn't transfer funds.  I talked to the bank they are using, who may have flagged their account for fraud but of course can't tell me anything.  My realtor reported the security breach to google since it was a gmail account created to appear to be him, along with the service provided for the account that got hacked.  Lastly, I talked to the local county sheriff's department who is going to go talk to the business owner for the address given in the wiring instructions.   If anyone else has any ideas of who else this can be reported to, please let me know!

    So, mainly a warning to all that if it doesn't seem right, it probably isn't.  We were just a a closing last week and that title company mentioned that they don't deal with wires anymore due to the vast amount or fraud going on.   

    Yes, there IS a LOT of fraud going on.

    The key lesson is actually to NEVER do wire transfer instructions by ANY medium other than in person with someone you know is part of the transaction, such as your title agent. Second choice would be by telephone (voice, not text!) to a known contact number.

    My $0.02 ...

    I'd also encourage everyone to avoid using Gmail, etc. and instead only use <agent/broker name> @ <brokerage name>.<tld> or something similar where the person would have been verified as being associated with some entity playing a role in the scenario.

    Remember that e-mail headers can be spoofed or forged such that the spam traps may not detect the inconsistencies.

    The "information age" has its issues ...

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kelly N.:

    @Jay Hinrichs- to be clear, his English is fine.  He (I am assuming it's a he) used words you would expect to hear, maybe a little hurried but if he were truly at a closing and typing this on his phone it could be plausible.  Here's the first e mail:

    "I got an update from Title company concerning the balance closing funds, they want you to wire the balance funds of $XX,XXX today to enhance a smooth transaction and to avoid any form of delay at closing.

    If there is cancellation of contract your funds will be wired back to you, This is just to enhance a smooth transaction and to avoid any form of delay at closing.

    I'm presently at closing now please let me know if you can get the funds wired today so that I can forward you their company trust account details .

    Please send me an email if you have any question am at closing.

    Thank You!"

    NOPE this English is way off  ( balance funds  that's totally wrong)   ( to enhance a smooth transaction) totally wrong. And sellers don't go to closings and wait for their funds in CA.. they get them wired to them.  

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  • Kelly N.
    OP
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    To someone that doesn't deal with this stuff every day, it sounded hurried.

    The guy is still e mailing me, asking me to confirm that I wired the money to the right account.  I told him to give me the title company's direct phone number and a contact, so now I have a name (Dave) and what appears to be a Delaware cell number...

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kelly N.:

    To someone that doesn't deal with this stuff every day, it sounded hurried.

    The guy is still e mailing me, asking me to confirm that I wired the money to the right account.  I told him to give me the title company's direct phone number and a contact, so now I have a name (Dave) and what appears to be a Delaware cell number...

    where is the property is it in Cloverdale CA or there in MI. ?

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  • Albert Ng
    Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
    7y

    @Kelly N.

    Just be glad that you cause it in time and didn’t wire any money. Police or sheriffs are quite useless most of the time, and they won’t be doing anything whether you have wired the money or not. Once you wire the money, it is gone, and if you are lucky, they will give you a police report. Else, “it’s civil matter”.

    The guys or gang are somewhere oversea, and unfortunately, won’t get any knock on their doors.

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  • Kelly N.
    OP
    Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
    7y

    @Jay Hinrichs- the property is in Michigan.  When I asked why the wire was going to California, he claimed that was their trust account at the head office.  I asked if we were still closing locally, and where, and he gave me the name of a local title agency.   He must have pulled the name from a previous e mail from my realtor- it is one we have used before, but it has either moved or closed since we were last there (4-6 years ago).  

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kelly N.:

    @Jay Hinrichs- the property is in Michigan.  When I asked why the wire was going to California, he claimed that was their trust account at the head office.  I asked if we were still closing locally, and where, and he gave me the name of a local title agency.   He must have pulled the name from a previous e mail from my realtor- it is one we have used before, but it has either moved or closed since we were last there (4-6 years ago).  

    there are title companies that do national work .. Mainly in the REO space.. But if its a local company the funds will always go to the local branch.. and then the bank could be in another state but the account is for the local title company.

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  • Michael A.
    Investor · Richmond, VA · Member since 2016 · 164 posts · 114 votes
    6y

    Any chance that an insurance policy (umbrella or otherwise) can help cover this fraudulent activity? 

    0Reply
  • Jeff S.
    Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    6y

    Title companies insure against defects in title, not wire fraud, @Michael A. They would have no liability anymore more than your homeowner insurance would have, which is none.

    HOWEVER, every escrow and title company email I receive now has a warning about the frequency of wire fraud, yet very few of them are taking even the obvious precaution of using encrypted email. I am not a lawyer but, separate from any insurance liability, it seems to me that at some point one will be accused of negligence for acknowledging there is a problem and doing nothing about it. I would include brokers and agents in this, because they know their emails are being spoofed too. Read here.

    Since this post, someone has been spoofing our company with a fake website and using my name when he answers the phone. I’ve written about that in this thread.

    I received emails from some who were scammed into the tens of thousands of dollars. These emails included the wire instructions the scammer provided to his victim. In all cases, no wire instruction reflected an account name that even remotely looked like the name of our company. One was to a bank that had no branches in California!!! Yet, some cheerfully wired the money. One sent Bitcoin.

    Don’t be a motivated borrower.  Use some common sense. Some of these scammers are very slick. Don’t respond to anonymous loan offers from out of town strangers at to-good-to-be-true rates. Meet your lenders face-to-face at real estate clubs. Take heed when a red flag appears, like being asked to wire money to a bank that doesn’t even have a branch in the state of your lender.

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  • Michael A.
    Investor · Richmond, VA · Member since 2016 · 164 posts · 114 votes
    6y

    @Jeff S. Sound advice. Much appreciated. While I try to take these precautions this is a sobering reminder for me. I am trying to explore options with the buyer who was supposed to close on a property in selling them this week. They are a close friend and unfortunately just became the victim of the wire fraud described by everyone on this site. They have some identity theft insurance, which surprised me. They are looking into what protection if any this might offer.

    It’s funny that you mention negligence. I thought of that too. If someone lost everything in a scam like this and was desperate to get at least something back couldn’t they go after the title company whose email was hacked? I imagined you could argue negligence or something. This is just a hypothetical, and I am not advocating. Was just an interesting thought.

    I’m really hoping for the best for my friend.

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    6y

    @Jeff S. The claims against title companies for losses due to misdirected funds are based in tort law and yes, title companies can be held liable under certain circumstances. The insurance industry now offers products in this arena to title companies... and unless you are a complete fool, you purchase some level of coverage. 

    Parties to real estate transactions seem more likely to ignore Big Red Flags as the settlement day gets closer and closer.

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