when there are deceased people that have an interest in the property. They may have passed away without a will or probate done, or there may be missing heirs that were unaccounted for. All of these scenarios would be a defect on title that will pass on to the new owner if not cleared up prior to closing. Why is it advisable for a property buyer to consult a title expert prior to completing their purchase? Ideally, a buyer would not try to purchase a property alone without involving a professional. But, again, if a new mortgage is applied for, it would not be an option to not have representation since the lender would require it. As long as a professional was involved, so would a title company, as we are a part of almost all real estaterelated transactions. A buyer that does not consult with us or does not perform due diligence before purchasing a home could run into one of the many serious issues I described earlier. What is the most notable growing threat in the title services industry? In the past few years, real estate cyber scams have become more and more prominent. In 2021, real estate cybercrime losses reached $350 million. That amounts to one attempted scam every 37 seconds. Wire fraud is the largest threat to real estate transactions. Cyber perpetrators use social engineering to impersonate a title company, real estate agent or lender. They often send fake emails to the buyer with fraudulent wiring instructions, conning them into wiring their closing funds to bank accounts under the fraudster’s control. It has become almost effortless for a fraudster to get information. They can go right online to MLS property listings or Zillow and see active real estate transactions. They can look up who the seller is, and the agent’s contact info is in the listing. Then they will send phishing emails to the parties, pretending to be others to gain information. If any of the parties involved do not use secure email (and most customers do not), the fraudster will hack their email account and harvest the details of their upcoming closing. They can even find out how much money the buyers will need at closing. They use the email signatures of the professionals involved to make it appear that the scam email is legit. In many cases, they will tell the buyer a story that they changed banks or account numbers and now need them to wire the funds to the new bank information. Fraudsters sit back and wait for the right timing. They are waiting to see if someone has a family emergency, a panicked situation, or an upcoming vacation. They will use the information to plan the perfect attack. Unfortunately, many fall for this and wire their funds to the fraudster. No one plans on getting scammed. Money that is sent by a wire transfer is extremely difficult to recover. Why did you choose to specialise in title services? I am not sure I was the one that made the choice; I believe it chose me. First, let me give you a little background. I joined Executive Title in 2009, partnering with Eric Whites, the original owner, who had started the company in 2002. We were still dealing with the fallout of the market crash of 2008. The housing market and industry altogether looked very different from what we had ever dealt with in the past. I came to Executive Title with a lending background. As a lender, I worked with title companies but did not fully understand the ins and outs that happened behind the scenes. What I did have was a drive and passion for learning and for success. Eric had lengthy title knowledge, and I knew he would teach me the areas I was unfamiliar with. 26 LAWYERMONTHLY SEPTEMBER 2022 In 2021, real estate cybercrime losses reached $350 million. That amounts to one attempted scam every 37 seconds.
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