Real Estate Traps: Title, Escrow, Fraud & Mistakes - An Insider's Essential Guide

You’re buying a home. Or selling one. Either way, chances are you're signing papers, transferring funds, and probably hoping someone behind the scenes is handling all the details. But who exactly is that someone—and what are they really doing?

We sat down with Lisa Schultz, Assistant Vice President and Senior Account Executive at Chicago Title in Tacoma, to unpack the world of title and escrow. Let’s just say: it’s more than just “holding the money.”

Title vs. Escrow: Who Does What?

Lisa put it simply. Think of title as the history book of your property. Who’s owned it. What’s been recorded on it. Whether Uncle Harvey really did leave someone the house.

Meanwhile, escrow is the process—the neutral third party making sure all sides deliver what they promised. It’s the glue that keeps the transaction on track, legal, and unbiased.

“Our job is to make sure the buyer has everything in, the seller has everything in, and that the property is transferred legally—with no surprises.”

Common Misunderstandings That Cause Big Problems

A few things people often get wrong—and how to avoid them:

• Not filling out your paperwork: Escrow sends questionnaires for a reason. They authorize payoffs, verify HOAs, and more. Ignoring them? That can delay your closing.

• Being out of town without telling anyone: Lisa’s team once closed a deal where buyers were in South Africa, the Philippines, and Pennsylvania—but it only worked because everyone communicated.

• Expecting everything to be digital: Some documents still need wet signatures. You might be able to sign a purchase agreement on your phone, but the county recorder still wants pen to paper.

• Showing up with expired ID: Yes, it matters. No, they can’t use it.

Wire Fraud is Real. Here’s How to Protect Yourself.

This isn’t just a warning—it’s a real threat. Lisa shared that wired funds can disappear overseas in under 20 minutes. Fraudsters pose as escrow officers, sending fake instructions by email or text. And once the money’s gone, it’s often gone for good.

Her advice?

• Assume your email is being watched.

• Never wire funds without verbal confirmation.

• Ask who will be sending you instructions—and verify them.

• Work with professionals who follow strict security steps.

“If someone doesn’t care about verifying your wire transfer, that’s a red flag.”

Elder Fraud, Seller Impersonation, and the Rise of Real Estate Scams

It’s not just wire fraud. Lisa also flagged other growing threats:

• Elder fraud: Predatory buyers offer cash to elderly homeowners, then record long-term listing agreements they don’t understand.

• Seller impersonation fraud: Scammers list homes that aren’t theirs, collect earnest money, and disappear. One fake seller got away with $50,000.

Protecting against this means knowing who you’re working with and trusting people who ask hard questions. If someone seems too easy to work with, it might be because they’re skipping important steps.

What You Need to Know About Power of Attorney

Lisa sees it often: adult children helping parents sell the family home. In these cases, a Power of Attorney (POA) is key. But not just any POA will do.

To be valid for a real estate transaction, it needs specific language—and lender approval.

“We want to make sure that POA is prepared for the right reason. And that everyone involved knows exactly what it allows.”

Whether it’s for a parent, a spouse overseas, or a military member on assignment, a POA can make a huge difference—if it’s done right.

The Bottom Line

Title and escrow aren’t just red tape—they’re your transaction’s safety net. And working with someone like Lisa, who cares enough to be thorough, can mean the difference between a smooth close and a financial mess.

Have questions? Susie and I are always here to help at rethinkingre.com, or just send us a message. Lisa can be reached directly at 253-241-6317 or llschultz@ctt.com.

Because when it comes to your home, details matter.