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 documenting the limits of the checks; vetting cannot eliminate fraud or 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

In California, use the Department of Real Estate’s public license lookup and review the license status, employing broker and listed discipline.

An active license record is evidence of current status, subject to any restrictions; it does not establish an absence of historical discipline. 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. Ask about applicable E&O coverage

E&O (Errors and Omissions) insurance protects against claims arising from mistakes or negligence in a transaction. Requirements and policy terms vary. Do not assume a California agent must carry a particular policy or bond without identifying the applicable requirement.

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

DRE publishes formal disciplinary information. Complaint and investigation information is not a complete public database; an absence of listed discipline does not establish an absence of complaints.

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

Agency identifies whom the agent represents; it does not alone grant authority to change a principal’s payment instructions. Confirm authority for the specific act through the governing instructions and principal.

California Civil Code section 2079.14 specifies the timing of agency disclosures for listing and buyer agents; “first substantive contact” is not a universal California deadline. Dual agency requires the applicable disclosures and consent. Do not use a generic “transaction broker” category as a substitute for determining the actual California relationship.

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’s compromised email is a serious risk. 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, and on a periodic schedule chosen in office policy.

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.

Sources

• California DRE: public license lookup
• California DRE: public discipline and background-review limits
• California Civil Code section 2079.14: agency disclosure timing
• FBI: Business Email Compromise

These sources support the legal and security points identified above. Suggested office workflows are operational guidance, not a finding of compliance, insurance coverage or legal protection.