Fraud: Protecting Yourself & Your Clients

Often, buying a property is one of the most significant purchases in a person’s life, which makes it an ideal opportunity for scammers. Over the last decade, scams have become more sophisticated, and it is now more important than ever to protect yourself and your clients from fraud.

When a con artist finds a property (likely vacant land), fraud often happens in real estate. They will then contact a real estate agent claiming to be the property owner and state that they want to sell. They will declare they have their own notary or will find one for all the paperwork. Usually, the scammer will tell the agent they want a cash deal or a fast sale, and they will NOT be signing in person but would instead send it through the mail.

At this point, the scammer has already created a fake ID, driver’s license, or passport of the actual property owner to send to the agent. The listing agent now has an offer, which turns into a signed contract and is sent to the title company. The title company opens the contract, orders the title, and communicates with the “seller” through email or phone. They then prepare closing documents and send them via UPS to the “seller.” Keep in mind the “seller” has provided the correct name, address, phone number, email, and government-issued ID, proving they are the person they say they are. How would the title company know any different? The documents are signed and notarized by a certified notary, the deal is then closed, and proceeds are disbursed to the “seller” via check or wire.

In situations like these, it is possible, primarily through legal support, to reacquire the property when another uses fraud to steal and sell. The real estate agent’s reputation and the commission earned will be already compromised.