For North Carolina real estate attorneys, title professionals, lenders, Realtors, buyers, and sellers, ALTA’s updated Best Practices are more than an industry recommendation. They represent a significant shift toward stronger fraud prevention measures at a time when impersonation schemes are becoming increasingly sophisticated.
Because North Carolina is an attorney-closing state, closing attorneys already serve as the settlement agent and are responsible for overseeing critical aspects of the transaction, including title review, document execution, fund disbursement, and recording. The new ALTA guidance places additional emphasis on verifying the identities of buyers, sellers, and borrowers before the transaction reaches the finish line.
More Identity Verification Is Becoming the New Normal
If you’re buying or selling real estate in North Carolina, don’t be surprised if your attorney’s office requires additional documentation or verification throughout the transaction.
Under the updated ALTA Best Practices, settlement providers are encouraged to implement formal identity fraud prevention programs that verify the identity of parties signing closing documents. These procedures may include enhanced ID validation, biometric verification tools, credential analysis, secure signing procedures, and additional authentication steps before funds are released.
While these measures may seem like extra work, they exist for one reason: protecting consumers from fraud.
Increased Protection Against Seller Impersonation Fraud
One of the fastest-growing fraud threats nationwide involves criminals posing as property owners and attempting to sell real estate they do not own.
Vacant land, inherited property, investment properties, and out-of-state-owned real estate have become common targets. Fraudsters often use stolen personal information and convincing identification documents to impersonate legitimate owners.
For North Carolina attorneys, the updated ALTA standards reinforce the importance of independently validating identities before documents are signed and proceeds are distributed. Enhanced verification procedures can help identify red flags before ownership is transferred and before a fraudulent seller receives funds.
Greater Scrutiny of Remote Signings
The rise of remote transactions has made real estate more convenient, but it has also created new opportunities for fraud.
ALTA’s updated guidance emphasizes training and verification procedures for signing professionals, whether they are employees of the settlement company or third-party providers. The guidance specifically addresses situations where signing professionals are selected outside the settlement provider’s control, recommending that those documents be treated as having an elevated fraud risk.
For North Carolina closings, this means attorneys may implement additional verification requirements when parties sign documents remotely, sign outside the attorney’s office, or use third-party notaries.
Better Protection of Closing Funds
Real estate fraud is no longer limited to forged signatures. Criminals frequently target closing proceeds and buyer funds through email compromise and wire fraud schemes. North Carolina professionals have seen numerous cases where fraudulent wire instructions resulted in substantial financial losses for consumers.
Although ALTA’s update focuses on identity verification, confirming that people are who they claim to be is one of the most effective ways to prevent funds from being sent to the wrong individual. Stronger verification procedures help attorneys confirm the legitimacy of payment instructions and identify suspicious activity before money leaves a trust account.
Increased Confidence for Buyers, Sellers, and Lenders
The ultimate goal of ALTA’s revised Best Practices is to improve trust in the real estate closing process, particularly:
- Buyers want confidence that they are purchasing property from the rightful owner.
- Sellers want assurance that their proceeds will be delivered securely.
- Lenders want certainty that loan documents are being signed by legitimate borrowers.
- Attorneys want to reduce the risk of fraud, claims, and transaction disputes.
The new identity verification requirements help achieve all of these objectives by creating a more secure and consistent closing environment.
The Bottom Line for North Carolina Consumers
The days of simply presenting a driver’s license and signing a stack of documents are quickly evolving. Today’s closing professionals are expected to verify identities with greater certainty than ever before.
That’s good news for consumers.
As fraud risks continue to grow, enhanced identity verification is becoming one of the most important tools available to ensure that North Carolina real estate transactions remain safe, secure, and reliable.
Stott, Hollowell, Windham & Stancil
Latest posts by Stott, Hollowell, Windham & Stancil (see all)
- How Is Property Divided in a North Carolina Divorce? - October 12, 2026
(704) 827-3941
(704) 800-6454
704-827-0644