Red Flags review
Complete the Red Flags identity-verification check on a deal. Confirm the buyer's ID, attest, and save it to the deal's compliance record.
Last updated
The Red Flags check is your record that you verified the buyer's identity against their ID before you closed the sale. It's designed to support the FTC Red Flags Rule's "reasonable policies and procedures" expectation. It does not give you a legal opinion. You run it on the deal, in the Compliance step.
Where to find it
- Open the deal from Deals.
- Go to the Compliance step (step 3 of the 5-step deal wizard).
- Find the Red Flags: identity verification card. (The OFAC sanctions screening card is above it. That's a separate check, see the FAQ.)
Complete the check
Have the buyer's government-issued photo ID in front of you.
- Check each box that is true:
- Government-issued photo ID was presented
- ID name matches the buyer on the deal
- ID is unexpired
- ID address matches the application (or noted below)
- ID photo matches the person present
- Use the Notes / discrepancy resolution box to explain anything that didn't line up, for example a different address you confirmed another way. (Optional.)
- Tick the attestation box: "I attest that I performed the identity verification above against the buyer's government-issued ID."
- Click Save verification.
The Save verification button stays disabled until you tick the attestation box. The checklist boxes alone won't enable it; you must attest.
A company buyer
When the buyer is a company, the card says so and names the person who signs for it. The ID items are about that signer: their ID, and that the name on it matches the signer named for the company (never the company's name). Three company items follow:
- The company's legal name matches its formation papers or the state business registry.
- The state of formation is confirmed as given.
- Proof the signer may act for the company was seen: an operating agreement, a resolution, an officer listing, or a letter on the company's letterhead.
Below them, an EIN line is worked out for you from the customer record: "has 9 digits" when the EIN on file is the right shape, "No EIN on file... Not required" when there is none, or a warning when it is the wrong shape (correct it on the customer record; until then the check reads Flagged). The attestation reads that you checked the signer's ID and the company's papers. If no signer is named on the customer record yet, the card asks you to add one first. See Company customers.
What the result means
After you save, the card shows a status badge:
- Cleared: every one of the 5 items was checked. Clean verification.
- Flagged: one or more items were left unchecked. The check is still saved and recorded. This is intentional: a discrepancy you resolved and noted is a valid, audited outcome. Use the Notes box to explain how you handled it.
The card also shows Last completed with the date and the teammate who did it. The completion is written to the deal's audit log.
You can re-do the check at any time. Saving again overwrites the previous answers, notes, and status, and records a new completion time and user.
Who can do this
Owners, Managers, and Sales can run and save the Red Flags check. Other roles see the card but the checkboxes, notes, attestation, and Save verification button are not shown.
FAQ
Does a "Flagged" result stop me from marking the deal sold?
No. The Red Flags check is recorded either way; "Flagged" does not block the sale on its own. Until you complete the check, the deal's Compliance progress lists ID verification as still needed, but that's a reminder, not a hard gate. (The hard gate is OFAC: Mark sold is refused when the buyer or co-buyer has no screening, when a co-buyer was added or a name changed after the screening, and while an unresolved sanctions match waits for a human to resolve it. See OFAC sanctions screening.)
What's the difference between Red Flags and the OFAC screening above it?
They're two separate checks on the same Compliance step:
- OFAC sanctions screening matches the buyer's (and co-buyer's) name against the U.S. Treasury sanctions (SDN) list. A missing or out-of-date screening is refused at Mark sold, and an unresolved potential or confirmed match blocks the sale.
- Red Flags identity verification is your manual confirmation that the person and their ID are legitimate. It's a checklist plus your attestation.
Do both before you close the sale.
Does the system authenticate the ID document for me?
No. AutoDealer.io records your manual verification. It does not scan or authenticate the document itself. You're attesting that you personally checked the physical ID against the buyer.
Do I need a specific plan for this?
No. Red Flags is available on all plans.
Can I leave the notes empty?
Yes. Notes are optional. They're most useful when something didn't match and you want a record of how you resolved it.