You’re smart. You’re careful. But even savvy buyers and homeowners fall victim to real estate fraud. Criminals are impersonating sellers and title companies, resulting in swindles that can take months of legal hassle to repair and cost you thousands of dollars. Do You Know the Targets? It starts with a scammer posting a property for sale without the knowledge of the actual owner. These properties are often unoccupied or vacant—land, lots, second homes—where it’s easier to put up a fake for-sale sign and owners or residents won’t wonder about people stopping by to look at the property. What’s the Setup? The criminal, posing as a seller or listing agent, communicates primarily by email. Often, there is urgency on the seller’s side of the transaction—the seller needs cash quick or wants a fast closing. The property may be priced below market value. The criminals want you to ignore warning signs and focus on the great deal. What Are the Red Flags? Once you have a purchase agreement, the criminal then directs you or your agent to use the “seller’s” preferred title company for the closing. The introductions and wiring instructions are all provided via email. Usually, the title company isn’t local to the property being purchased. Once you send your funds to the bogus title company, the money is gone. How Can You Avoid Being a Victim? Pay attention to detail and validate what you’re told. Ask the seller for identification. Does he provide it or stall? Does it match the owner’s information on the appraisal district website? Independently verify the title company’s information. Does the title company’s website use the same email address conventions and URL that you’re getting in emails from the seller? Are the messages and links secure? A real title company would not send wiring instructions by email without additional precautions. Your REALTOR® can help you with this and the many other steps required for a successful transaction.

Buying a home is exciting. However, scammers may try to use your excitement and inexperience against you. Watch out for these attempts to defraud you. Partner Companies Be wary if you receive a letter from a company claiming to be a partner or associated with your mortgage lender wanting additional information for your loan. Since you have already closed on your home, it is a scam. Do not give out your personal or financial information. Deed Processing Notice If you get a bill stating you owe money for a copy of your deed or property assessment profile, don’t pay it. Property deeds are mailed to you free after a sale or transfer. If you need an additional copy, you can order one through your county clerk’s office. Business Imposters Legitimate utility companies will not call or show up at your door asking for payment through a money order, cryptocurrency, or other nontraceable forms. They also will not ask to see your bill or account information. When you receive a bill, always verify the email, business address, and phone number is correct. Fraudsters often use real company names and logos to trick you into thinking the bill is real. Home Warranty Con Did you know you are not required to purchase a home warranty? If you want one, research and contact companies with good reputations. Beware of companies claiming your home warranty is expiring or has already expired and that payment is needed. Loan Scams Companies that urge you to refinance shortly after closing make money on excessive loan fees—putting you at a higher interest rate than you currently have. It’s always best to research the best lender for a refinance instead of responding to a cold call or advertisement. Since this is not an exhaustive list, work with your trusted REALTOR®. Ask for advice on how to spot real estate scams and ways to protect yourself.