By Attorney H. Robert Fischer, III
Buying or selling a home can be an intimidating process, especially with the prevalence of real estate scams. According to the FBI’s Internet Crime Complaint Center https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pdf, in 2022 alone, real estate fraud resulted in victim losses of $396,932,821.00.
Here are a few to look out for:
-Cashier’s Checks and Refunds: In this scam, a fraudulent buyer offers to purchase your home sight unseen and sends a cashier’s check for an amount exceeding the agreed price. They then request you to wire transfer the surplus back to them, only for you to discover later that the check was fake. To avoid this, never accept payments without verifying their authenticity with your bank.
-Forced Agreements: Scammers target desperate homeowners by pressuring them to sign contracts with lock-out clauses, preventing them from selling to anyone else. They may also demand processing fees or reduced prices to expedite the sale. To avoid this, take your time with transactions, and consult with reputable professionals before making any decisions.
-Business Email Hacks and Wire Transfer Fraud: The most common scam involves hacking real estate agents’ or title companies’ emails to gain access to your information and closing details. Impersonating the seller, the scammer convinces the title company to transfer funds to their account. To prevent this, always verify email instructions through direct communication with your real estate professional.
-Unsolicited Buyers Wanting Off-Market Sales: Fraudsters may approach you with unsolicited offers, often below market value, to phish for personal financial information. If you need to sell quickly, explore alternatives like home equity loans or mortgage refinancing rather than falling for tempting off-market cash offers.
-Forged Deeds: Scammers can present fraudulent deeds for your property, recording them at the county recorder and taking out a mortgage in your name. Protect yourself by monitoring your property title and ensuring you receive all property-related documents.
Conclusion: By being vigilant and cautious, you can protect yourself from falling victim to real estate scams. Always research involved parties, know your property’s value, and avoid rushing into transactions. If you suspect a scam, take immediate action by contacting authorities and reporting the incident. Trust your instincts and seek professional guidance whenever needed to ensure a safe and successful real estate transaction.
