Here are some real estate scams that Realtors should be aware of in the United States:
- Wire fraud: This is a common scam where the scammer will send the Realtor a fake wire transfer for a property. The scammer will often use a fake email address that looks like it's from a legitimate bank. The Realtor will then deposit the fake wire transfer into their account and send the keys to the property to the scammer. Once the scammer has the keys, they will sell the property and disappear.
- Title fraud: This is a scam where the scammer will steal the title to a property and then sell it to an unsuspecting buyer. The scammer will often use a fake ID to pose as the owner of the property. The Realtor will then facilitate the sale of the property to the unsuspecting buyer. Once the buyer has paid for the property, the scammer will disappear and the buyer will be left with nothing.
- Forgery: This is a scam where the scammer will forge documents related to a real estate transaction. This could include a deed, a mortgage, or a closing statement. The Realtor may not be able to tell that the documents are forged, and they may unknowingly facilitate a fraudulent transaction.
- Identity theft: This is a scam where the scammer will steal the identity of a real estate agent. The scammer will then use the agent's identity to contact sellers and buyers. The scammer may pose as the agent and ask for money upfront for services that will never be rendered.
- Prepayment scams: This is a scam where the scammer will ask the Realtor to pay a fee upfront for something that is not necessary. For example, the scammer may ask the Realtor to pay a fee to process a wire transfer or to obtain a title search. The Realtor may not be aware that the fee is unnecessary and they may unknowingly pay the scammer.
These are just a few of the real estate scams that Realtors should be aware of in the United States. It is important for Realtors to be vigilant and to protect themselves from becoming victims of fraud. How can you avoid scams as a Real Estate Professional?
- Do your due diligence: Before you do anything, make sure you do your due diligence on the buyer or seller. This includes checking their identification, verifying their financial information, and running a background check.
- Trust your gut: If something doesn't feel right, don't do it. If you have any doubts about a transaction, walk away.
- Get everything in writing: Get everything in writing, including the offer, the purchase agreement, and the closing statement. This will help to protect you in case of a dispute.
- Be careful with wire transfers: Only wire money to a reputable institution that you know and trust.
- Report scams: If you suspect that you are being scammed, report it to the authorities immediately.
There are tools our there that can help Realtors navigate the scammy waters.
Whitepages Premium Pro is a background check service that provides a wealth of information on individuals, including their criminal history, financial records, and employment history. This information can be helpful for Realtors to use when vetting potential buyers or sellers.
Forewarn is another background check service that is specifically designed for Realtors. Forewarn provides information on individuals that may be associated with fraud or other criminal activity. This information can be helpful for Realtors to use when making decisions about whether or not to work with a particular client.
Some other similar softwares include:
- Instant Checkmate: This service provides a variety of information on individuals, including their criminal history, social media profiles, and contact information.
- TruthFinder: This service provides a similar range of information as Instant Checkmate, but it also includes some additional information, such as property records and driving records.
- BeenVerified: This service provides a comprehensive range of information on individuals, including their criminal history, social media profiles, contact information, property records, and driving records.
These are just a few of the many background check services that are available to Realtors. When choosing a background check service, it is important to consider the specific needs of your business. For example, if you are working with high-value properties, you may want to choose a service that provides more comprehensive information.
It is also important to note that background check services are not foolproof. They can only provide information that is publicly available. This means that there is always the possibility that someone may have a criminal record or other negative information that is not included in their background check report.
Despite these limitations, background check services can be a valuable tool for Realtors. They can help to protect you from fraud and other risks associated with real estate transactions.
I hope this information is helpful!
