***PROPERTY SCAM ALERT***
Local Police Departments are warning real estate agencies, realtors, brokers, attorneys, and property owners about a significant increase in reports of attempted real estate fraud.
The typical scenario is that someone claiming to be the legal owner of a piece of property reaches out to a real estate agent/broker to sell the property, and then proceeds with a sale defrauding both the legal owners of the real estate, as well as the purchasers.
They are advising that some red flags to be alert for are that the individuals often want to sell the property quickly, sometimes for less than market value. They regularly request that “For Sale” signs not be posted on the property. They will often tell the realtor that they are traveling or away on business, and don’t have access to a copy of the deed or tax bill. They will also communicate mostly via text and email, but occasionally by phone, often providing email addresses in the name of the legal owners (but not the actual legal owners email addresses). They always request a remote closing (or a closing in escrow) and they will often select their own remote notary.
They seem to be mostly targeting vacant land that does not have a mortgage or lien on it, and whose property tax bill is mailed out of state.
Local Police and District Attorney’s offices are suggesting that owners of vacant real property remain vigilant in monitoring real property websites, such as Zillow, Trulia, OneKey MLS, and the like to see if their property is listed for sale, and recommend posting “Not For Sale” signs on the property.
They are recommending that real estate professionals:
1) ask for multiple forms of identification as fraudulent passports and Driver’s Licenses are often provided,
2) request a video conference with the purported seller to confirm they are the person whose picture appears on the identification,
3) ask the seller to provide the deed and tax bill, and do not offer to pull the same (except as verification that the documents provided are accurate),
4) ask the purported seller questions about the surrounding area to prove that they are familiar with the area,
5) only use a remote notary selected by you (the real estate professional) or by the title company,
6) speak with neighbors to see if they know and can reach the property owner, and if they can have the property owner call you to discuss the listing, and
7) ask to meet the seller face-to-face.
There have been some suggestions to search social media for a photo of the property owner, but many of these individuals are establishing fake social media profiles. That being said, it may be helpful in determining if the profiles are fake by the number of “friends” the person has and/or when the profile was established. Be wary of newly established profiles.
Additionally, real estate professionals can search Zillow for the property history. Even if the MLS listing is deleted as fraudulent so that you may no longer be able to see it, Zillow still shows the listing and removal history. If there are multiple listings and removals in a short time period, this is highly suspect, and is often a red flag.
Be vigilant. Monitor your property. Be cognizant of red flags. We all have to work together to prevent property fraud.
