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. How can agents and brokers help combat against fake real estate listing schemes? Here are some tips:
- Always rely on government records, such as tax forms, to verify property ownership.
- Require identity verification before listing the property.
- 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.
- Before completing a transaction, put something in the mail that goes to the address listed on the tax records of the actual deed holder.
- 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.
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