To check if a real estate agent is legitimate, look them up by name or license number in your state’s real estate commission database, confirm the license is active, and verify they actually work for the brokerage they claim. Those two searches take about five minutes and answer the core question. A few more checks into disciplinary history, professional memberships, and reviews will tell you whether an active license is hiding a pattern you’d rather know about before signing.
Ask for Three Things Before You Search
Get the agent’s full legal name, their state-issued license number, and the full legal name of their brokerage. Marketing materials often use nicknames or shortened names that won’t match regulatory records, so ask for the name exactly as it appears on the license. The license number is the single most reliable identifier because it eliminates confusion when multiple agents share the same name. If the agent hesitates to hand over a license number, note that before you go any further.
A licensed salesperson cannot operate independently. They must work under a licensed broker who supervises their transactions and answers for their conduct. Knowing the brokerage lets you verify the individual and the firm in one sitting.
Run the State License Lookup
Every state maintains a public database, run by its real estate commission or department of licensing, where you can look up any agent or broker by name or license number. These portals are free and return real-time data: license type, current status, issue date, and expiration date. You want to see “Active.” That means the individual is currently authorized to facilitate transactions and earn a commission. Expired, inactive, or suspended means they cannot legally represent you, whatever they may say.
Look at the license type as well as the status. A salesperson license means the agent must work under the supervision of a licensed broker, and you should confirm that supervising broker relationship. A broker license reflects additional education and experience requirements and allows independent practice, escrow account management, and supervision of other agents. If someone introduces themselves as a broker but the database shows a salesperson, ask about the discrepancy.
Multiple States or Cross-Border Purchases
If your agent claims licenses in more than one state, or if you’re buying across state lines, the Association of Real Estate License Law Officials maintains a national database covering over four million licensee records from 45 participating jurisdictions. A single search on ARELLO’s site confirms license status in multiple states without visiting each state’s portal.1ARELLO. ARELLO Verification License reciprocity between states varies widely, so an active license in one state does not automatically authorize the agent in another.
Check REALTOR® Membership if They Claim It
Not every licensed agent is a REALTOR®. That trademarked title belongs only to members of the National Association of Realtors, who agree to follow a Code of Ethics that goes beyond what state licensing law requires.2National Association of REALTORS®. Membership NAR’s “Find a Member” directory lets you confirm the membership. If an agent uses the REALTOR® title but doesn’t appear in the directory, they’re misrepresenting a credential, which is a violation of NAR’s trademark policy and a useful signal about their honesty.
Specialized designations like Graduate, REALTOR® Institute (GRI) or Certified Residential Specialist (CRS) work the same way. NAR’s website lists recognized designations, and the issuing organizations maintain their own directories.2National Association of REALTORS®. Membership If an agent advertises a credential, verify it exists and that they hold it.
Confirm the Brokerage Is Real and the Agent Works There
A number of scams involve someone impersonating an agent at a well-known brokerage. Confirming the brokerage relationship catches this. Use the same state licensing portal to search the brokerage’s firm license and confirm it’s active. Then cross-reference the office address and phone number the agent gave you against the brokerage’s official corporate website. If those details don’t match, you may be dealing with someone borrowing a reputable brand name to redirect your funds.
Look at email domains closely. A legitimate agent’s email should come from the brokerage’s official domain, not a free webmail account. Scammers routinely register domains that differ by a single character from a real firm’s address. If a message comes from anything other than the brokerage’s known domain, call the brokerage directly using a number you find independently, not one supplied in the email.
Look Up Disciplinary History and Court Records
An active license only tells you the agent hasn’t been caught doing something bad enough to lose it. Most state licensing databases include a disciplinary actions section showing consent orders, formal reprimands, fines, and suspensions. Common infractions include mishandling client funds, failing to disclose known property defects, and misrepresenting material facts. A single minor violation from years ago may not concern you. A pattern of sanctions is a different matter.
For a wider view, check federal court records through PACER, the Public Access to Court Electronic Records system. A free account lets you search a nationwide index of federal cases for bankruptcy proceedings, civil fraud litigation, or other federal actions involving the agent.3PACER: Federal Court Records. Find a Case The PACER Case Locator aggregates records from all federal courts and updates daily. Local civil court records are worth a look too, though those usually require checking each county court’s website on its own.
Agents Who Also Pitch Investments
If an agent offers real estate investment trusts, syndications, or other securities-related products alongside traditional real estate services, they may need a separate securities license. FINRA’s BrokerCheck confirms whether someone is registered to sell securities and displays their employment history, regulatory actions, arbitration outcomes, and complaint records.4Financial Industry Regulatory Authority. BrokerCheck – Find a Broker, Investment or Financial Advisor An agent offering investment products without proper securities registration is breaking a different set of laws, and your exposure in that scenario can be severe.
Read Reviews and Call References
Licensing databases tell you whether an agent has crossed a legal line. Reviews tell you how they treat clients who never filed a formal complaint. Zillow, Realtor.com, and Google Business profiles show client ratings, written reviews, and in some cases verified transaction details including the location and year of each deal. No agent has a perfect record across hundreds of transactions. Look for patterns instead: repeated mentions of poor communication, pressure tactics, or failure to follow through signal problems that won’t show up in any regulatory database.
Ask the agent for references from recent clients. A confident professional will hand over two or three names without hesitation. Ask those references specific questions. Did the agent disclose problems with the property? Were there surprises at closing? Did they feel pressured to waive contingencies? Vague or evasive answers are as informative as negative ones.
Watch for Wire Fraud and Impersonation
Wire fraud in real estate has grown into one of the most financially damaging forms of consumer fraud tracked by the FBI. The typical scheme starts with an email that looks nearly identical to one from your title company or agent, containing “updated” wiring instructions that route your down payment or closing funds to a criminal’s account. Once the wire clears, recovery is unlikely.
Warning signs worth knowing before you’re under closing-day pressure:
- Last-minute wiring changes. Any email with “revised” or “updated” bank details near closing deserves extreme suspicion. Legitimate title companies rarely change wiring instructions.
- Urgency and pressure. Messages demanding immediate action or threatening that the deal will fall through are designed to bypass judgment. Real closings run on timelines, not ultimatums.
- Mismatched account names. Wire instructions should direct funds to the title company or closing attorney’s escrow account, not a personal account or an unfamiliar bank.
- Lookalike email addresses. Read every character in the sender’s domain before acting on anything financial.
- Email-only confirmation. A request to confirm wire details exclusively by email is a hallmark of the scam. Always confirm by calling the title company at a number you obtained at the start of the transaction.
AI-generated voice and video impersonation has added a new layer to these schemes. If anything about a call feels slightly off, hang up and call back on a number you already have on file.
Ask About Errors and Omissions Insurance
Errors and omissions insurance covers you if your agent makes a professional mistake that costs you money, such as failing to disclose a lien or misrepresenting property boundaries. Roughly a dozen states require real estate professionals to carry E&O coverage. Elsewhere it’s optional but common among reputable agents and brokerages. Ask directly whether the agent carries it, and ask for the name of the carrier. A legitimate professional won’t be offended by the question.
NAR offers an E&O insurance program through Victor Insurance Managers, and some state associations recommend specific carriers.5National Association of REALTORS®. Errors and Omissions (E&O) Insurance Without coverage, a professional mistake leaves you chasing a judgment against an individual who may not have the assets to pay it. For high-value transactions, confirming coverage before signing a representation agreement is worth a brief conversation.
If Something Doesn’t Check Out
If your research turns up a suspended license, a fake brokerage, or signs of a wire fraud scheme, act quickly. Stop communicating through any channel the suspected imposter controls, and contact the real brokerage through independently verified contact information. If money has already moved, notify your bank immediately and request a wire recall. Recovered funds drop sharply after the first 24 hours.
File a complaint with your state’s real estate commission, which can investigate licensing violations and impose sanctions up to license revocation. Report broader fraud to the FTC at reportfraud.ftc.gov, where your report joins a database shared with law enforcement nationwide.6Federal Trade Commission. ReportFraud.ftc.gov Your state attorney general’s consumer protection division is another route, particularly for deceptive business practices. If wire fraud is involved, also file with the FBI’s Internet Crime Complaint Center at ic3.gov.