Back HomeBeware Of Real Estate Scams
Real estate scams, including wire fraud, title theft, and fake listings, are increasingly common. Scammers impersonate professionals to steal funds or personal information, often using phishing or spoofed emails to steal closing costs or forge ownership documents. Protect yourself by independently verifying all wire instructions via phone and watching for urgent requests or too-good-to-be-true deals.
Scammers might use deepfake-generated audio or video to impersonate buyers, sellers, real estate agents, real estate lawyers, title agents or other professionals.
Common Real Estate Scams
- Wire Fraud: Fraudsters hack emails or spoof agents/title companies to send fake wiring instructions for closing costs and down payments.
- Title/Deed Fraud: Scammers forge documents to transfer ownership of a property into their name, often targeting vacant lots or rental properties.
- Rental/Vacant Land Scams: Fraudsters list homes or land they do not own for rent or sale, collecting deposits from unsuspecting victims.
- Foreclosure Relief: Scammers charge upfront fees promising to save homes from foreclosure, but do not provide any real help.
- Loan-flipping Scam: Scammers often target seniors by convincing homeowners to refinance their mortgage repeatedly. Each time they refinance, the borrower is charged elevated fees, a high interest rate, and expensive closing costs.
- Seller/Buyer Impersonation: Criminals pose as legitimate sellers (often via email only) to sell property quickly or pose as buyers to gather personal information.
Warning Signs and Prevention
- Verify Independently: Always call your escrow agent or attorney to verify wiring instructions using a trusted, independent phone number before sending money.
- Be Skeptical: Be wary of urgent, last-minute changes to financial instructions.
- Check Property Ownership: Contact your local county recorder’s office to confirm the seller is the legal owner.
- Inspect In-Person: Do not purchase or rent a property you have not seen in person.
- Beware of “Too Good to Be True”: Extremely low prices or demanding quick, high-dollar payments are major red flags.
- Work with trusted, licensed professionals. Always partner with real estate agents and lenders who are licensed and have strong reputations. If someone reaches out unexpectedly, take the time to verify their credentials before sharing any information or moving forward.
If you become a victim, report the fraud to the FBI’s Internet Crime Complaint Center (IC3) immediately, along with your bank and local law enforcement.
Kim N. Bregman