You’re smart. You’re careful. But even savvy buyers and homeowners fall victim to real estate fraud. Criminals are impersonating sellers and title companies, resulting in swindles that can take months of legal hassle to repair and cost you thousands of dollars.
Do You Know the Targets?
It starts with a scammer posting a property for sale without the knowledge of the actual owner. These properties are often unoccupied or vacant—land, lots, second homes—where it’s easier to put up a fake for-sale sign and owners or residents won’t wonder about people stopping by to look at the property.
What’s the Setup?
The criminal, posing as a seller or listing agent, communicates primarily by email. Often, there is urgency on the seller’s side of the transaction—the seller needs cash quick or wants a fast closing. The property may be priced below market value. The criminals want you to ignore warning signs and focus on the great deal.
What Are the Red Flags?
Once you have a purchase agreement, the criminal then directs you or your agent to use the “seller’s” preferred title company for the closing. The introductions and wiring instructions are all provided via email. Usually, the title company isn’t local to the property being purchased. Once you send your funds to the bogus title company, the money is gone.
How Can You Avoid Being a Victim?
Pay attention to detail and validate what you’re told. Ask the seller for identification. Does he provide it or stall? Does it match the owner’s information on the appraisal district website? Independently verify the title company’s information. Does the title company’s website use the same email address conventions and URL that you’re getting in emails from the seller? Are the messages and links secure? A real title company would not send wiring instructions by email without additional precautions.
Your REALTOR® can help you with this and the many other steps required for a successful transaction.
I’ve had this experience with a fraudulent seller twice and was able to avoid my buyers from losing $750,000 thanks to the diligence of South Land Title in Galveston who felt the presumed “seller” was not the real seller and proved it by contacting the real owner. The second time another presumed “seller” contacted me through Realtor.com I recognized the obvious signs and have not communicated with this scammer any longer, even though he persists on reaching out to me.
I have been a licensed realtor for 30 years. Both of Georgia and Florida and also San Antonio Austin. My husband has dementia so when I first moved back to Texas I got everything done with my license and arranged for sitters for him to be looked after. I saw And Add on Facebook that a company was looking for someone to list houses on Facebook every day. You give the potential buyer a phone number of some person and you don’t hear from him again. All your job was is post the house and the price. Needless to say… Read more »
Get copy of deed and deed of trust from country court house to match signatures with commission agreement document signatures. OR inquire data from neighbors amid near by the house and ask questions, e.g. where owners moved too, why the owners were moving, how many in their family. Take the data with any additional questions with finesse probe gently with comparison questions to sellers to see if it matches neighbors respones about what they know of the property owners. Also check to see who is paying property tax. Check with the FBI for criminal activities on sellers name. Ken Respondek/Broker-Realtor
Always work with a seasoned agent and reliable title company.