In today’s digital-first real estate world, speed and convenience matter, but nothing matters more than security. Nowhere is this more critical than during the transfer of large sums of money.
Every day, buyers wire earnest money, down payments, and closing funds. A single phishing email or fraudulent instruction can cause those funds to vanish forever. Wire fraud is one of the fastest-growing threats in real estate, with hundreds of millions lost each year.
Fortunately, there’s a quiet but crucial figure working behind the scenes to reduce these risks, the Transaction Coordinator (TC). While TCs are often thought of as “Paperwork pros,” they also serve as a safety net for communication, keeping clients focused on the right process and encouraging them to always go straight to the source for wiring details.
This article explores how TCs help protect one of the most vulnerable stages of the real estate process: Fund transfers. From earnest money deposits to closing payments, discover how a great TC can help agents and clients avoid costly mistakes and fraud.
1. The Risk of Wire Fraud in Real Estate
Wire fraud is not a rare scenario; it’s an everyday threat. Hackers often target agents, escrow officers, and clients through phishing and email spoofing. Here’s how it typically plays out:
- A hacker gains access to an email account.
- They monitor conversations until wire instructions are mentioned.
- Right before real instructions are sent, the hacker sends fake ones.
- The client unknowingly wires money to the wrong account.
By the time anyone realizes, the money is gone. Buyers may lose life savings. Agents may face lawsuits. Trust is broken.
This is why having a process and a professional TC guiding communication is critical.
2. What the TC Does (and Doesn’t Do) to Support Wire Security
It’s important to note: Transaction Coordinators do not send or confirm wire instructions. Handling funds is the job of the escrow or title company, not the TC.
Instead, TCs act as communication guides to reduce risk and confusion:
- Encourage Clients to Contact Title Directly
The TC reminds buyers and sellers to reach out to the title/escrow company directly for wire instructions. This avoids delays and eliminates the chance of acting on fraudulent emails. - Provide Clear Timelines
Many wire fraud attempts succeed during moments of confusion. TCs help by outlining deadlines for earnest money, down payments, and closing funds so clients know when to expect communication from escrow. - Add Disclaimers to Communication
Experienced TCs include strong reminders in every email, such as:
- Never trust wire instructions sent by email.
- Always verify instructions by calling the title company directly.
- Do not forward or share wire instructions with others.
- Never trust wire instructions sent by email.
- Coordinate Communication
TCs track when escrow sends wire details, when funds are due, and whether anything has changed, so agents and clients stay informed without confusion.
3. Common Wire Transfer Challenges (and How TCs Help Prevent Them)
Problem: The Client Forwards Wire Instructions
Forwarding emails can create openings for fraud.
How the TC helps: They remind clients to get instructions directly from the title company instead of passing them along.
Problem: Buyer Doesn’t Realize Funds Are Due Early
Missed deadlines can cause delays or even deal fallout.
How the TC helps: They outline fund timelines from the beginning and send reminders.
Problem: Title Company Updates Instructions
Bank or account changes can raise red flags even when legitimate.
How the TC helps: They advise clients to always confirm updates directly with the title company before taking action.
Problem: Client Sends Funds Incorrectly
One wrong digit or misunderstanding can cause big problems.
How the TC helps: While they can’t handle money, TCs keep communication flowing so the client can immediately work with their bank and escrow to address the issue.
4. The TC’s Wire-Security Workflow
Here’s what a typical process looks like with a wire-conscious TC:
- Step 1: Escrow Opens
TC welcomes the client, outlines timelines, and includes a wire fraud disclaimer. - Step 2: Wire Instructions Sent by Escrow
TC reminds the client: Contact escrow directly for instructions; do not rely on forwarded emails. - Step 3: Funds Due
TC sends a reminder about deadlines, keeping the process clear and avoiding last-minute surprises. - Step 4: Confirmation
TC tracks when escrow confirms receipt, updating files and keeping the agent informed.
5. What Agents Gain from a Wire-Watchful TC
With so many moving parts, agents don’t always have time to track wire timelines and communication. A TC ensures:
- Less client confusion and fewer repetitive questions.
- Reduced the risk of errors or fraud attempts slipping through.
- Clear timelines that keep deals on track.
- Peace of mind for both the agent and the client.
When TCs keep the communication organized, the whole team looks more professional and trustworthy.
6. Traits That Make a TC Effective at Wire Support
Not every TC handles this role well. The best ones are:
- Proactive about sending reminders.
- Skilled communicators with clear, calm messaging.
- Consistent about adding disclaimers.
- Professional in coordinating with escrow and agents.
- Always be careful not to forward or paraphrase wire instructions.
7. Real-World TC Success Stories
- Caught a Fraud Attempt: A buyer emailed a TC a suspicious set of wire instructions. Instead of confirming, the TC told the buyer to call escrow immediately. That phone call revealed the email was fake, saving the client thousands.
- Deadline Saved: A first-time buyer thought they could bring a personal check to closing. The TC caught the misunderstanding early, coached them to contact escrow, and ensured funds arrived on time.
- Title Change Flagged: When escrow updated its wire instructions, the TC quickly reminded the client to confirm directly, preventing funds from being sent to an old account.
Conclusion: Why a Wire-Conscious TC Matters?
Wire fraud is a real threat in real estate, but it doesn’t have to derail transactions. By guiding communication, reminding clients to go straight to the source, and keeping deadlines crystal clear, TCs act as the first line of defense against costly mistakes.
At the end of the day, a TC does more than manage paperwork; they protect your deals, your clients, and your reputation.
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