How to Verify a Home Seller Before You Buy: 10 Must-Follow Steps

Buying a home is a big decision. You not only want to protect your hard-earned money but also protect yourself from mistakes you might regret later. One of the most overlooked steps is making sure the seller is legitimate.

Real estate fraud isn’t rare. Some scams are obvious, like fake listings that disappear once the deposit is paid. Others are harder to spot, like a seller hiding co-ownership disputes or unpaid debts tied to the property. The good news is that with the right checks, you can avoid most of these problems before you’re in too deep.

This guide walks you through practical steps to confirm a seller’s legitimacy and protect your purchase.

Why Seller Verification Matters

When a sale goes wrong, the damage can be more than financial. You could face months of legal battles, lose your deposit, or even risk foreclosure if hidden debts follow the property.

The FBI logged 9,359 real estate fraud complaints in 2024, with reported losses hitting $173.6 million — and that’s only from cases victims reported. Fraud ranks high among loss categories because scammers target closing funds and wire transfers.

A verified seller means:

• They legally own the property they’re selling
• There are no hidden co-owners with claims on it
• The home is free from legal disputes that could block the sale

Skipping these checks can leave you with problems you didn’t create — but will have to fix.

10 Steps to Check If the Seller Is Legit

Confirming a seller’s legitimacy isn’t about being suspicious — it’s about protecting your investment. These steps help verify ownership, spot warning signs, and keep your transaction secure from start to finish.

Step 1: Confirm the Seller’s Identity

Ask to see a valid government-issued photo ID. Make sure the name matches the one on the property documents. If the home is being sold through an agent, they should also confirm they’ve verified the seller’s ID.

Tip: Compare the seller’s name and signature to those on the title deed and purchase agreement. A mismatch needs an explanation — and sometimes, a legitimate one exists, like a recent name change.

Step 2: Verify Property Ownership

Public property records are your friend here. You can usually check these through the county recorder’s website or in person.

Look for:

• The current owner’s name
• The date and price of the last recorded sale
• Any co-owners listed
• Recorded liens or mortgages

You can also run a property records search by entering the address. This can return the owner’s name, property size, type, elevation, assessed value, market value of land and buildings, acreage details, and even school and municipal IDs. The data comes from recorded deeds (up to the current month), assessment records from previous years, and state and local property databases. This gives you accurate, up-to-date details you can rely on for your real estate decisions.

Example: In 2023, a couple in Florida almost bought a property from someone who only had partial ownership through inheritance. The sale could have been blocked if the other heirs hadn’t agreed to it — something they discovered just in time from the property records.

Step 3: Request the Title Report

A title report outlines the property’s history and can reveal liens, easements, or restrictions. Title companies usually prepare this once you’re in escrow, but it’s possible to get a preliminary report earlier.

Action tip: Contact a title company directly and ask for a preliminary title report before making an offer. This early check can reveal problems that might otherwise surface only after you’ve started escrow.

If the report shows issues, work with a real estate attorney or title officer to resolve them before closing. Even with a trusted seller, record errors can happen.

Step 4: Ask for Proof of Mortgage Payoff

If the home still has an active mortgage, confirm that it will be paid off at closing. Request a payoff statement from the seller’s lender or review it in the escrow documents.

Why this matters: A buyer in Arizona once purchased a home only to learn the seller’s mortgage wasn’t fully cleared. They ended up in a legal dispute with the lender because the debt stayed attached to the property.

Step 5: Check for Legal Disputes

Court records can reveal if the property is involved in ongoing issues, such as:

• Foreclosure filings
• Divorce cases mentioning the property
• Boundary disputes
• Probate proceedings

Action tip: Many county courts have online search tools. Where that’s not available, visit the clerk’s office and request assistance with the search.

Legal disputes don’t always mean you have to walk away, but they should prompt a discussion with a legal professional before moving forward.

Step 6: Look Into the Seller’s Background

For higher-value purchases or sales without an agent, some buyers choose to run a background check on the seller.

A comprehensive background check can uncover property & business ownership, fraud convictions, unresolved judgments, liens, business associations, employment history, or other public record issues. The goal isn’t to dig into private life — it’s to confirm the person you’re dealing with is legitimate and financially capable of completing the sale.

Tip: If you choose this route, use a reputable service that gathers data from official records. Avoid “instant” sites that may rely on outdated or incomplete information.

Step 7: Watch for Red Flags in Communication

Fraud often shows up in how the seller behaves. Be cautious if they:

• Refuse in-person meetings or ID checks
• Rush you to transfer money or sign papers
• Give vague or conflicting details about the property
• Avoid using an escrow service

Example: A scammer in California posed as a landlord for a vacant property, insisting on a quick deposit to “hold the home.” The buyer lost $8,000 before realizing the person had no connection to the property at all.

Step 8: Work With Verified Professionals

Licensed real estate agents, attorneys, and title officers have systems to verify sellers and catch fraud early. Make sure the professionals you hire are licensed in your state — you can usually confirm this through your state’s licensing board website.

If you’re handling the purchase yourself, you can still hire a real estate attorney for a flat fee to review documents and flag risks.

Step 9: Use Escrow for Transactions

Escrow adds a layer of security for both sides. The buyer’s deposit goes into a neutral account, and the seller only receives funds when all terms are met.

Tip: Always make sure you’re using a licensed escrow company or a law firm’s escrow service. Fraudsters sometimes create fake escrow websites to trick buyers into sending money.

Step 10: Review the Purchase Agreement Carefully

The purchase agreement should clearly state:

• Seller’s legal name
• Property’s legal description
• Agreed sale price
• Closing date and conditions

If something doesn’t match public records, stop and ask questions. Never let anyone pressure you into signing before you understand every section.

Extra Checks for Remote or Out-of-State Transactions

If you can’t meet the seller in person:

• Hire a local agent to view the property and meet the seller on your behalf
• Request a live video walkthrough showing today’s newspaper or a time-stamped phone screen to prove it’s recent
• Only send money through a verified escrow account

Remote transactions are riskier, but they can be done safely if you stick to secure processes.

Why These Steps Are Worth the Effort

Some buyers think skipping identity verification will save time or help them beat other offers. In reality, rushing this step is what scammers count on.

A property purchase can be delayed by title issues, disputes, or ownership challenges. Finding these before you close puts you in control — not the problem.

Final Thoughts

Verifying a seller’s legitimacy is more than a formality. It’s a safeguard for your money and peace of mind. Take time to check ID, ownership, title records, and legal history. Watch for signs of rushed or evasive behavior, and always keep transactions secure through licensed escrow.

When the deal involves higher risk or large sums, consider running a general background check for added security. It’s a small step that can prevent much bigger problems later.

Buying a home should start with confidence, not uncertainty. Follow these steps, and you’ll be in a stronger position to make your purchase safely.