Fraud Related to Buying and Selling Real Estate

Gone are the days of fraud being limited to credit cards and social media accounts. Fake real estate sellers, also known as seller impersonation fraudsters, are a serious threat in the real estate market. These scammers attempt to sell properties they don’t own by posing as the legitimate owner, often targeting vacant land or properties that aren’t occupied by the owner.

With interest rates remaining high, a growing population aging, and fraudsters becoming increasingly brazen and resourceful, combating property fraud has never been more crucial. The real estate community works to protect you from property fraud and to proactively restore trust in every transaction, starting from the county recorder’s office and ending at the closing table.

Real estate listing agents are always on the lookout for the telltale signs of property fraud. Possible indications of impersonation include: the seller is looking to make a quick sale, the seller wants to price the property below market value, the seller refuses to meet in person and only communicates via email or text, and/or the supposed owner does not reside at the property. One of the most straightforward and most cost-efficient actions listing agents take to protect themself, and their community is requiring a seller to verify their identity before agreeing to list a property.

The best time to stop property fraud is before it starts, but if a fraudster is successful in bringing a property to market, title agents have a timely opportunity to once again verify the seller’s identity. Doing so can give title agents confidence that the seller is who they claim to be and that they’re not an imposter trying to sell someone else’s property.

If you’re concerned about property fraud, consult with your local County Clerk’s office to see if they offer free property fraud alerts.