It has been found that criminal networks, including international crime rings, have been actively engaging in seller impersonation fraud and the FBI recently reported that since 2020, total losses from real estate fraud exceeds $50 Billion Dollars!
Millions of dollars change hands, and dreams of homeownership hang in the balance. Everyone often focuses on the real estate agents, lawyers and lenders; however, there’s often a crucial needed figure often overlooked in the fight against real estate fraud: the notary public. Notaries play a vital role in safeguarding the integrity of property transactions.
Notaries are more than just “stamp-pushers”. Their responsibilities extend far beyond witnessing signatures and stamping the document. In the real estate world, the notary’s crucial role lies in verifying the identity of the signer. This is a simple, yet, extremely important function as it acts as a significant deterrent to various fraudulent activities.
Did you know that:
- Notaries are trained to verify identities using multiple forms of identification? This prevents fraudsters from impersonating homeowners or buyers forging signatures on crucial documents like deeds and mortgages. The notary’s identification process significantly reduces the risk of identity theft.
- Notaries witnessing a signature adds a layer of legal accountability. When witnessing the signer’s identity and willingness to sign, notaries significantly reduce the chances of fraudulent documents being executed.
- There are times when vulnerable individuals might be coerced into signing documents they don’t fully understand. A vigilant notary knows how to identify those potential situations and take the appropriate steps to protect the signer.
- The most significant contribution of a notary lies in the prevention of title fraud. The notary’s verification process is a critical barrier against such fraudulent situations.
The National Notary Association (NNA) representatives recently joined federal and state officials and key trade organizations at a summit in Washington D.C. to discuss a critical reality: Notaries are more important than ever in protecting the public from FRAUD.
NNA representatives met with FBI’s Economic Crimes Unit and a coalition of real estate trade organizations to discuss ways to strengthen the role of Notaries in protecting consumers amid the rise of Notary impersonation fraud and seller impersonation deed fraud.
NNA has collaborated with AARP, the American Land Title Association (ALTA), the Mortgage Bankers Association (MBA), National Association of Realtors (NAR), and Property Records Industry Association (PRIA) to develop comprehensive legislative policy recommendations aimed at combating deed fraud.
Choosing a reputable and experienced notary is a proactive measure, ensuring peace of mind and creating trust in today’s real estate market.
