Real estate fraud costs buyers and sellers millions annually. With property transactions becoming increasingly digital, learning to spot and prevent fraud is more important than ever. Follow these expert tips to protect your investment.
1. Verify Property Ownership Thoroughly
Always check official land records at the local registrar’s office. Fraudsters often pose as owners of properties they don’t actually possess.
2. Beware of Too-Good-To-Be-True Deals
If a property is priced significantly below market value, it’s likely a scam. Legitimate sellers rarely offer massive discounts without reason.
3. Never Wire Money Directly to Sellers
Use escrow services for all transactions. Fraudulent “sellers” often pressure buyers to send money outside protected channels.
4. Research Agents and Brokers
Check licensing status with your state’s real estate commission. Fake agents often use stolen license numbers or forged credentials.
5. Inspect Properties in Person
Virtual tours can hide critical flaws. Always visit the property with a trusted professional before committing.
6. Review All Documents Carefully
Watch for suspicious clauses in contracts. Have a real estate attorney examine agreements before signing.
7. Monitor Your Credit Reports
Identity thieves often use stolen information to commit mortgage fraud. Regular credit checks can reveal unauthorized activity.
Red Flags of Real Estate Fraud:
- Sellers who refuse to meet in person
- Requests for upfront “processing fees”
- Pressure to act immediately
- Documents with spelling errors or inconsistencies
Expert Tip: Consider title insurance to protect against ownership disputes and forged documents.