The sale of real estate is one of the top transactions targeted by scammers. The latest scam affecting the public and real estate professionals involves criminals impersonating a seller wanting to list a lot or vacant land.
REALTORS® in Texas and nationwide have reported this activity. Consider these tactics for protecting you and your clients against this type of property scam:
Trust But Verify
Having a new listing is great, but do you really know who you’re dealing with? Since a scammer can easily find the name of the property owner and address of a property from the appraisal district, always confirm the details with the title company. Also, request an in-person or virtual meeting to verify that they match the picture on their government-issued id.
Watch for Red Flags
Is the seller on an “extended vacation,” asking for paperwork and money to be sent to a different address than the one listed at the appraisal district, or insistent on using their own notary? While there might be circumstances or reasons to request something beyond the norm, don’t proceed until you’ve double-checked that it is legitimate.
Be Aware
Stay informed on the latest scams to know what to watch for. If a situation seems suspicious, ask around about it. It’s possible that others in your area are being targeted as well.
It’s always a good idea to use trusted title companies and attorneys for closing documents and funds. And don’t forget to keep a record of all transactions in case you need to file a complaint.
I had one property listed by a fake seller, sold, closed, proceeds wired and ownership changed before being discovered.
Apparent fraudster attempting to do same process on different property, but listing agent called me.
FBI and Economic Crimes of Police Department investigating.
Also, fraudulent purchasers also using counterfeit cashier checks plus supporting counterfeit documents. Then wanted funds wired back to different account
What is the minimum proof of ownership (lot/vacant land) and identity?
Thank you for the information. I will share it with my mentee.
This just happened to me. The scammer said he was in CA in the hospital having surgeries for cancer and needed the money to help pay for his treatment. We conducted everything electronically via email, text and Docusign. I listed two lots and got one of them under contract. Things seemed “fishy” when the lot that was just sold last year did not have a slab, but has one now. When I asked the person if they had the building plans for the slab he said there was not a slab. I started investigating further and found the owners Facebook… Read more »
TREC, TAR, NAR, can’t stand a thief.
Wow! Thank you for sharing!
thank you
I thought the the title company will also check to make sure the transaction is legit?
Title companies can be fooled too.
While in a TREC CE course, a broker participant in Austin said it irrelevant who signs contracts as long as they fund. Instructor had to correct participant many times, but participant said they did it all the time. Title companies get fooled.
Thank you for this information. We all can learn from this. Great feedback.
I am a property owner in east Fort Worth. In the last few months I have had fraudulent sellers try to sell properties I own FOUR times. I know of one other similar case. The scammer calls a real estate agent, identifies himself as me, and says he has to do business over the phone because he is hospitalized in California with cancer. He says he wants a quick sale and is willing to accept a low price because he needs money to pay for his treatment. In all cases these were foiled attempts, mainly because the agents (and in… Read more »
It’s not hard to check the title? Right?
Criminal Masterminds could truly change the world, if they would only use their minds for something good and legal. I never understood how people can think so underhandedly. Thank you for the information. Sad this happens to people.
I have said and thought the same. Use it for good not bad.
Thank you for posting these things. It really helps us with eyes on the communities we serve.
This is very helpful, thank you! I’m so so tired of scammers calling me.
Worthless article does not explain what the scam is???????
What I read and understand is con-artist are getting someone elses property in contract to sell. The property does not belong to that individual. They say they can not meet in person, but do send all relevant documents to title in order to get the contract closed. Fraud!
I was just involved in something like this. Fortunately, the property did not go on the MLS. I had been referred this seller by a third party company who verified phone number and name. I called the Seller for a couple of days and finally got a return call. He wanted to get the property on the market, I did cma, but could not talk to his wife. I looked up the Seller through Whitepages.com and tried calling a couple of times but the only thing I had was a land line. I went to the property and fortunately the… Read more »
just has this done received random text asking ” are you a realtor in Texas, i response yes. Then i proceeded to tell them lets jump on a quick phone call. “they said rather text because it was easier, i said fine lets meet/chat They said no to meet or phone call . i then told them NOT INTERESTED and that was the extent of the call double/triple check for your peace of mind
Jim
I keep getting TXT messages from “Texas Land Buyers” wanting to speak with me about my land at 14231 Medora St. I assume it is simply a fishing scam, but then I wonder, does someone possibly own this land using my name? How can I check the CoT for this address?
I was just scammed in Port Aransas and will be reporting it. Fake seller on a lot. Discussed transaction with title company and so thankful they caught it. Be careful out there.