Bulletin: SLS2022004

Dear Associates:

This bulletin is a reminder and supplement to Stewart’s Bulletin SLS2021007 - Claims Avoidance - Fraudulent Land Sale Scheme.

We have encountered an increasing number of attempts by fraudsters posing as purported sellers of vacant parcels, notwithstanding the publication of Bulletin SLS2021007 and the efforts of our agents to prevent these fraudulent transactions.

As is customary in a pattern of fraudulent schemes, the usual scenario has changed somewhat. Previously, the owners of the vacant parcels were overwhelmingly foreign nationals. Recent trends now include more incidences targeting domestic owners. In addition, the technology employed by the fraudsters has become more sophisticated so that it has become increasingly more difficult to detect the existence of an imposter solely through document/credential review.

As noted in SLS2021007, one of the most effective methods to combat this scheme is through the use of a confirmation/thank you letter sent by regular mail directly from the title agent to the seller at the address shown for the seller in the county tax records to confirm the true owner’s intent to sell. Most sellers who have not placed their property for sale are diligent about responding to the confirmation letter. Accordingly, due to the increased incidences of this scheme and the difficulty in discovering the scheme through customary document review, we strongly recommend that you send a confirmation/thank you letter on every file fitting the profile.

The letter should be sent by first class US mail or by overnight courier (do not use mailing methods where signatures or ID are required) with sufficient time between the mailing of the letter and closing to allow the seller to respond. If the seller responds and confirms they are the selling party, a copy of the letter and the seller’s response should be retained in your closing file. If you receive no response to the letter, you should seek an alternative form of confirmation, which could include verbal confirmation with the true seller, confirmation from another known and trusted party in the transaction, or other circumstances as approved by an STG underwriter. We have found that requesting documentation from the original purchase of the property may be effective in proving that you are dealing with the true seller, as fraudsters do not generally have access to settlement statements and policies issued at the time of purchase.

Attached is a sample form of confirmation/thank you letter for your use, or you may use your own form.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.