How to Verify to Identity of the Signer for a Real Estate Transaction

Written by Posted On Monday, 02 May 2016 13:55

One of the biggest moments in any person’s life is making the decision to plant some roots and purchase property. It’s a decision that can’t be taken lightly, and the long, arduous process starting with submitting an offer to finally signing the deal requires a mountain of paperwork that reflects that.

When it comes to the process of buying property, it isn’t as simple as cutting the seller a check and getting the keys in return. Anytime a large sum of money is exchanged or transferred, much like most real estate dealings, legal documents must be signed and notarized to ensure that the transfer of ownership is legitimate. In essence, this begins with verifying the identification of the buyer.

Collecting and verifying info regarding the identification of the buyer is extremely important. We live in a world were if the slightest opportunity is presented, fraudsters will use it to their advantage and attempt to misrepresent themselves and their intentions. There are hundreds of cases of fraudulent real estate dealings where the buyer was less than honest about who they were, and as a result the deal is put in jeopardy and the seller is faced with taking further legal action.

Acceptable Forms of ID

When a real estate agent or a notary asks for valid identification, there are a few options that will work:

  • State driver’s license
  • State issued non-driver’s ID card
  • Passport
  • Military ID card
  • Government ID cards (state, county, and local are accepted)
  • Lawful permanent resident cards

These forms of ID are acceptable because they provide a complete spectrum of info that is required to verify the buyer’s identity. This includes info like eye color, hair color, date or birth, height, weight, as well as a picture of the person.

It’s important to note that these requirements can vary slightly from state to state, and double-checking specific protocol in your state will make the process smoother.

Unacceptable Forms of ID

Regardless of how “official” one feels that their document or information is in terms of confirming the ID of a buyer, there are several pieces of information that simply will not suffice:

  • Social Security card
  • Birth Certificate
  • Wedding license
  • Credit Cards
  • Bank Statements

Comparing the info found on these types of documents to the info found on acceptable forms of ID, it’s easy to see why these will not fly. First, none of these documents provide a photo, and they lack most of the other info needed to verify the buyer is actually the buyer (i.e. physical attributes). As a result, these documents can be falsified a lot easier and it can take longer to discover any fraud.

That’s not to say that state issued ID cards cannot be falsified as well, but the intricacies of the cards themselves (i.e. format, color, size, etc.) make it easier to spot fakes or inconsistencies. There are several guidebooks and databases that notaries and real estate agents can access that will provide very detailed instructions and/or services that can help further verify ID material from all 50 states as well as other countries.

Rate this item
(0 votes)
Andrew Armstrong

Andrew Armstrong is a freelance writer, construction technology enthusiast, and homeowner living in the San Francisco Bay Area. His recently published works include contributions to Renewable Energy World, BPlans.com, HR.com, and Tech.co. He is 2003 graduate of U.C. Berkeley in the Interdisciplinary Studies Field program.

kickstart.realtytimes.com

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries