7 Ways to Vet a New Real Estate Agent Before You Commit

A new agent reaches out with a file. They seem legitimate, the deal looks real, and they want to move fast. The question isn't whether to take their business. It's whether you can prove what you relied on if something goes wrong.

This guide covers seven specific checks for vetting a new real estate agent relationship, the red flags that warrant a pause, and how to document the decision so the file shows what the office actually verified before accepting instructions.

What vetting a new real estate agent means for an escrow office

Treat the process like an interview. You're testing local expertise, responsiveness, and whether the agent can actually instruct on behalf of a principal before you sign anything or accept a file.

For an escrow office, vetting goes beyond personality. You're confirming the person contacting you is who they claim to be, that they work at the brokerage they say they do, and that their files won't expose your office to fraud liability. Agents send wire instructions. They communicate on behalf of buyers and sellers. If an agent's email gets compromised or their identity gets spoofed, your office becomes the last stop before funds move to the wrong place.

Accepting business from an unvetted agent means accepting instructions you can't trace back to a verified source. That's exactly where social engineering finds its opening.

7 ways to vet a new real estate agent before you commit

1. Verify the license with the state regulator

Every state maintains a public database for looking up real estate license status. In California, that's the Department of Real Estate (DRE) website. The lookup takes about two minutes.

A valid license confirms the agent is currently authorized to practice and has no revocation on record. What it doesn't confirm: that the person contacting you is actually that licensee. License verification is a starting point.

2. Confirm the brokerage and the agent's authority to instruct

Call the brokerage's main office number, one you find independently rather than one the agent provided. Ask whether the agent works there and whether they're authorized to handle transactions.

An agent's authority to give escrow instructions depends on their relationship with the brokerage and their principal (the buyer or seller they represent). "Authority to instruct" means the agent has been granted permission to communicate binding instructions on someone else's behalf. Without confirming authority, you're trusting a claim you haven't verified.

3. Check E&O coverage and bond status

E&O (Errors and Omissions) insurance protects against claims arising from mistakes or negligence in a transaction. Some states require agents to carry their own policy. Others allow agents to work under their brokerage's coverage.

You can request a certificate of insurance directly from the agent or their brokerage. If they hesitate or can't produce documentation, note that in your intake record.

4. Review disciplinary and complaint history

State licensing boards maintain complaint databases showing disciplinary actions, license suspensions, and formal complaints. Not every complaint results in a public record, so the absence of complaints doesn't guarantee a clean history.

What to watch for:

• License suspension or revocation: Obvious disqualifier
• Fraud-related complaints: Worth flagging even if unresolved
• Repeated client disputes: Pattern matters more than a single incident

5. Validate identity, email domain, and phone channels

Real estate fraud often starts with impersonation. A spoofed email address, a lookalike domain (think "realtybrokerage.co" instead of "realtybrokerage.com"), or a compromised phone number can make a fraudster look like a trusted agent.

• Email domain: Confirm the domain matches the brokerage's official website exactly
• Phone number: Call back on a number you verified through the brokerage, not one provided in an email
• Out-of-band verification: When possible, confirm identity through a separate channel like a video call, an in-person meeting, or a callback to a known number

6. Ask for references from prior escrow and title partners

Client testimonials tell you whether an agent is pleasant to work with. References from other escrow or title offices tell you whether they send accurate instructions and communicate clearly when things change.

Questions worth asking: Has this agent sent accurate wire instructions? Were there communication issues or last-minute changes? Any incidents of concern?

If an agent can't name a single escrow or title partner they've worked with, that's a gap in their track record worth noting.

7. Set the intake policy and the exception path in writing

Vetting works best when it follows a written office policy rather than ad hoc judgment. The policy defines what checks are required before accepting a new agent's business and who approves the decision.

The exception path is what happens when an agent fails part of vetting but the office still considers accepting their files. Maybe the license is valid but newly issued with no transaction history. Maybe the brokerage callback went to voicemail.

The policy names who can approve an exception and requires a record of the decision and the reason. Without a written policy, vetting becomes inconsistent. Without an exception path, risky decisions happen silently.

Red flags that block or delay a new agent relationship

Some warning signs warrant a pause. Not automatic rejection, but a deliberate decision about whether to proceed.

• Agent resists providing brokerage contact information
• Email domain does not match official brokerage domain
• License is valid but newly issued with no transaction history
• Agent pressures for immediate wire releases before vetting completes
• Phone number provided does not match brokerage records
• Agent cannot name prior escrow or title partners

Any of the above triggers the exception path. If the office proceeds anyway, the approver, the reason, and the limitation belong on the file.

Agency disclosure and agent roles that affect the file

California and most states require agents to disclose their agency relationship in writing at first substantive contact. The type of agent determines whose interests they represent and, more practically, who they can instruct on behalf of.

Seller's agent

Represents the seller exclusively. Has authority to communicate the seller's instructions to escrow.

Buyer's agent

Represents the buyer exclusively. Has authority to communicate the buyer's instructions to escrow.

Dual agent

Represents both buyer and seller in the same transaction, with consent of both parties. Escrow offices confirm dual agency is disclosed and consented. The risk of conflicting instructions is higher here.

Facilitator or transaction broker

Does not represent either party. Assists with paperwork and process only. Instructions from a facilitator are confirmed directly with the principal.

Agent Role	Represents	Authority to Instruct Escrow
Seller's Agent	Seller only	On behalf of seller
Buyer's Agent	Buyer only	On behalf of buyer
Dual Agent	Both parties	On behalf of either, with disclosure
Facilitator	Neither party	Limited; confirm with principal

How to document the vetting decision on the file

Vetting is only useful if the office can prove what it relied on before accepting business. The file record captures the sources, the dates, and the limitations.

What belongs on the file:

• Source of verification: License database, brokerage callback, reference call
• Date of verification: When each check was performed
• Limitations: What the verification does not prove (a license check does not prove identity)
• Reviewer: Who in the office performed and approved the vetting
• Exception record: If any step was skipped or failed, who approved the exception and why

Ongoing controls after you accept the agent's business

Vetting is not one-time. Controls continue on every file, even with agents you've worked with for years.

• Verify wire instructions through callback, even with known agents
• Watch for changes in email domain, phone number, or behavior
• Re-vet if the agent changes brokerages
• Stale the vetting record if material information changes

Here's the uncomfortable part: a familiar agent whose email is compromised is the highest-risk scenario. Trust built over time is exactly what social engineering exploits. Ongoing controls exist because the threat doesn't stop after intake.

FAQs about vetting a new real estate agent

How often should an escrow office refresh its vetting of a real estate agent?

Re-vet when the agent changes brokerages, when you receive a complaint or notice of disciplinary action, or at minimum annually for agents sending regular business.

Who in the escrow office should approve the decision to accept a new agent's business?

The owner or manager typically approves new agent intake decisions, especially when the vetting process surfaced concerns or exceptions.

What is the difference between vetting an agent and vetting a wire instruction?

Agent vetting confirms who you are working with before you accept business. Wire instruction vetting confirms that a specific payment instruction is authentic before you release funds. Both are required. Neither replaces the other.

Does vetting a real estate agent satisfy ALTA Best Practices requirements?

ALTA Best Practices address wire fraud prevention and escrow controls but do not prescribe specific agent intake procedures. A documented vetting process supports Best Practice compliance but is not a substitute for the full framework.

Can an escrow officer accept business from an unvetted agent if the transaction is urgent?

Only through a named exception approved by the owner or manager, with the reason and approver recorded on the file. The exception is never silent or buried.