If you plan to buy or rent a new property, you'll work with several people to complete the transaction. With the risk of real estate fraud, it's crucial to take the proper steps to recognize and avoid scams if they pop up.
What Is Real Estate Fraud?
Fraud exists in many sectors, including real estate. With this type of fraud, someone buys or rents a property using deceptive practices to take a person's valuable information or money. Anyone who owns, buys or rents a home — including companies — can become a victim of real estate fraud.
One common example is when a criminal tricks a buyer into sending money for a down payment or home purchase to a scam account. Another instance would be when someone falsely advertises a property for rent and gets an interested party to send them a payment.
People and companies who are victims of this crime can lose money and sustain a damaged reputation. It also harms the economy.
How to Avoid Real Estate Agent Scams
The first thing to do is ensure the person you speak with is who they say they are. For example, no landlord or real estate agent should call you and say you must make an urgent money transfer. If the person starts asking suspicious things, tell them you will call back.
You can then contact the company they claim to work for and ask if that person is a legitimate employee. If something like this occurs over email, ensure you take steps to prevent phishing by:
- Checking the sender's email address. Many phishers will slightly change the address to make it hard for you to spot that it is a fake, like changing a zero to the letter O.
- Avoiding clicking any links until you know the message is safe.
- Contacting the company directly to determine if the sender is legitimate.
Taking precautionary steps, like getting your real estate agent's or mortgage broker's name, email and phone number, can make it easier to double-check when they contact you.
Learn More From AAA
At AAA, we know buying or renting a home or property has many moving parts. Our goal is to help make things easier by giving you access to resources that help you stay alert and streamline the process!
Sign up for a membership to take advantage of our homeowners and condo insurance, financial resources and more. You can also browse our blog for more information about important topics. If you experience suspected fraud, report it to the Federal Trade Commission.
