Which of the following is NOT a proactive measure to prevent real estate fraud?

In the context of preventing real estate fraud, the correct answer highlights a practice that does not actively contribute to fraud prevention. Instructing the lawyer not to prepare written payment directions undermines a systematic and documented approach to real estate transactions. Written payment directions serve as a clear record of how funds are to be disbursed, providing a level of transparency and accountability that is vital in mitigating the risks of fraud.

On the other hand, verifying the existence of a mortgage, conducting thorough title searches, and requesting documentation from clients are all proactive measures that enhance the security and reliability of real estate transactions. These actions help to ensure that all parties are legitimate, that ownership is verified, and that any potential encumbrances are disclosed prior to the finalization of a property sale.

By not preparing written payment directions, an important safeguard against potential fraud is removed, thereby increasing the vulnerability of the transaction to fraudulent activities.