From NAR
In a competitive real estate market, be on the lookout for scammers posing as property owners with a false listing. Agents should beware of common red flags when they suspect fake documentation and counterfeit deeds. Here are some tips to combat these real estate schemes:
- Always rely on government records, such as tax forms, to verify property ownership.
- Require identity verification before listing the property. Use websites and apps that can help verify IDs. “It’s not impossible [for scammers] to file fake documents with the locality,” Murray said. But scams can be detected early using current technology.
- Encourage clients to set up a Google alert so they get early warnings if their address gets added to a syndicated real estate website.
- Have a conversation with the property owner whose home has suddenly popped up as For Sale with unclear representation, and warn them of the listing. This can build good faith and lead to a future relationship whenever the true owner wishes to sell.
- Before completing a transaction, put something in the mail that goes to the address listed on the tax records of the actual deed holder; the scammer will not receive it at their listed address.
- Be careful not to inadvertently violate fair housing rights. Avoid implicit bias against sellers from certain demographics or countries of origin.
- If something seems suspicious, contact local law enforcement or the FBI.
- File a complaint with the Internet Crime Complaint Center.
- Contact your broker and insurance company to get yourself covered and make a plan.
- Document everything you have done to verify the person’s identity.
- Create a standard protocol document at your brokerage for validating sellers.
- Understand property possession risks.
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