Growing number of scams in the real estate business: both buyers and sellers should stay alert
Real estate licensees in Virginia and other nearby states are seeing a sharp rise in scams involving fake buyers and sellers. In this new scam, thieves are calling real estate agents and asking them to list properties they don’t own.
Most of the time, criminals want to sell properties that don’t have a mortgage, like empty lots, for less than the market value, quickly, and for cash. By going after properties that don’t have a mortgage or other lien, con artists hope to finish the deal before the lender tells the real owner.
Most of the time, these criminals say they are stuck abroad or out of the area because of an emergency. This is why they want to sell so quickly. Laura M. Murray, the general counsel for Virginia REALTORS, says, “We hear of a lot of cases where the fake sellers say they can’t do the deal in person because of a medical or family emergency.” “Most of the time, they will insist on doing the whole deal online.” In many of these cases, the criminals’ digital images of photo IDs are made so that they are almost impossible to read.
Scammers can be kept away from agents and their clients by taking the following steps:
• Conduct independent research on property ownership through county land records
• Insist on meeting with sellers—either in person or by video call
• Insist on a known settlement company or attorney being involved in the transaction
Virginia REALTORS 2023 President Katrina M. Smith reminds agents, “It is imperative to trust your intuition. If something seems off, make sure to speak with your broker about further steps you can take before taking any actions with the consumer.”
