Protect Yourself from Real Estate Fraud
Real Estate Fraud: What Buyers and Sellers Need to Know
Fraud in real estate transactions is on the rise, and both buyers and sellers need to be vigilant. Criminals use sophisticated tactics to scam unsuspecting parties out of money, property, or personal information. Here’s what you need to know to protect yourself from fraud when buying or selling a home.
Common Types of Real Estate Fraud
1. Wire Fraud
Criminals often impersonate real estate brokers, title companies, or attorneys and send fraudulent emails requesting wire transfers for down payments or closing costs.
How to Protect Yourself:
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Always verify wire instructions by calling a trusted phone number (not one in an email).
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Be wary of last-minute changes to wiring instructions.
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Confirm that the recipient is the correct entity before sending any money.
2. Title Fraud
Scammers may steal a homeowner’s identity, forge documents, and fraudulently transfer ownership of a property.
How to Protect Yourself:
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Regularly check your property records with your county recorder’s office.
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Sign up for property fraud alerts if available in your area.
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Work with a reputable title company to verify property ownership.
3. Phishing Scams
Hackers send fake emails that appear to be from real estate professionals, attempting to collect sensitive personal or financial information.
How to Protect Yourself:
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Do not click on suspicious links or attachments.
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Confirm any requests for sensitive information with a known contact via phone.
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Use multi-factor authentication for your email and banking accounts.
4. Seller Impersonation Fraud
Fraudsters may pose as property owners and attempt to sell vacant or unoccupied land or homes that do not belong to them.
How to Protect Yourself:
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Verify the seller’s identity with official government-issued documents.
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Work with licensed real estate professionals and attorneys to confirm ownership records.
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Be suspicious of sellers who push for quick cash sales.
5. Rental and Lease Fraud
Scammers post fake rental listings or pretend to be landlords to collect deposits or rent payments on properties they do not own.
How to Protect Yourself:
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Visit the
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property in person before making any payments.
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Verify the property owner through public records.
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Be skeptical of landlords who refuse to meet in person or ask for payment via gift cards or wire transfers.
Best Practices to Prevent Real Estate Fraud
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Work with Trusted Professionals – Use licensed real estate brokers, attorneys, and title companies. Verify their credentials before doing business.
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Verify All Communications – Do not assume emails, texts, or calls are legitimate. Independently verify all requests for payments and sensitive information.
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Use Secure Payment Methods – Avoid cash transactions and be cautious with wire transfers. Confirm all details before sending money.
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Monitor Your Property Records – Regularly review your property records for any unauthorized changes.
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Report Suspicious Activity – If you suspect fraud, report it to your local real estate commission, law enforcement, or the FBI’s Internet Crime Complaint Center (IC3).Trusted Resources for More Information
For further details on preventing real estate fraud, visit the following reliable sources:
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FBI: Real Estate Fraud – Insight into common real estate scams and how to avoid them.
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FTC: Home Title Fraud – Guidance from the Federal Trade Commission on preventing title fraud.
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USA.gov: Foreclosure Scams – Information on avoiding foreclosure-related fraud.
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National Association of Realtors: Real Estate Fraud – Strategies from NAR to recognize and prevent fraud.
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Department of Justice: National Elder Fraud Hotline – Resources for protecting seniors from real estate and financial fraud.
Contact Us for More Information
At R1, we prioritize the safety and security of our clients. If you have any questions or concerns about potential real estate fraud, please contact us at:
Stay informed, stay vigilant, and protect your real estate investments!
