In the high-stakes world of real estate, the ability to spot a fake seller can mean the difference between a lucrative transaction and a costly mistake.
There’s a rising occurrence of scammers impersonating property owners to profit from selling real estate they do not own. Below are some warning signs that should serve as a cautionary checklist. Each may indicate attempts to manipulate or expedite a deal without full transparency or adherence to legal norms.
Top signs you’re being scammed
- Exclusively electronic communication: The individual insists on conducting all communication via email or text. This approach enables them to mask their identity and commit crime from any location.
- Using remote notary: Arranging for a remote notary to handle closing documents could be a red flag for efforts to obscure details or bypass local regulations, potentially compromising the authenticity of the transaction.
- Underpricing or demanding all-cash offers: This can indicate an attempt to expedite a sale for fraudulent purposes, often targeting distressed buyers or sellers.
- Unwilling to meet: The person may refuse to meet in person or attend the closing. Legitimate transactions typically involve some degree of in-person interaction to confirm details and ensure proper documentation.
- Excessive willingness to make concessions: They may be overly eager to make concessions, such as reducing the price or paying for repairs, raising questions about the deal’s integrity.
- Claiming to know local notaries: The individual(s) claim to know a local notary, but documents should be signed by a professional like a REALTOR®, attorney or title agent.
Red flags on the property
Old Republic Title recommends paying particular attention to a property that:
- Is vacant or non-owner occupied, such as investment property, vacation property or rental property
- Has a different address than the owner’s address or tax mailing address
- Has no outstanding mortgage or liens
5 actions to take when contacted about listing a property
- Ask the contact to forward picture identification(s) and follow up with an in-person or video meeting request.
- Always verify property ownership via register of deeds and contact the owner to confirm they wish to list their property.
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- Contact the owner at an independently discovered and validated phone number.
- Mail a letter to the owner of the property at the address listed on tax records.
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- Pose questions to learn their knowledge of the property, especially facts that may not be available in public records.
- Require a seller verification affidavit that’s notarized and witnessed.
- Compare the signature to the signature of the owner shown on other recorded documents.
The consequences of closing a sale on a property that wasn’t meant to be sold are too huge to risk. If you cannot verify the seller, do not list the property, and report the fake sellers to your local sheriff’s department.
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