Common Real Estate Fraud you should beware of

Real estate fraud is a scenario where one uses any dishonest and deceptive practice in connection with the sale, purchase, rental, or financing of real estate property. There are different types of real estate fraud, ranging from locale to universal, and both buyers and sellers can fall victim to these frauds. Here are some common frauds in the real estate space that you should beware of.

Identity theft

A person may pose as a real estate agent, property owner, or buyer using stolen identities or pretense to carry out unauthorized transactions. Ensure you verify whoever you give personal information to, and always be cautious when sharing sensitive details.

Document forgery

Criminals may forge documents like permits or title deeds to transfer property ownership illegally. Ensure you regularly check your property’s title and report any activity that you deem suspicious to the relevant authorities.

Rental scams

Criminals may create fake rental listings and ask potential customers to send deposits or rent payments for properties they do not own or do not exist. Before engaging in any transaction, verify the legitimacy of any listing or agent and conduct your transactions through secure channels.

Misrepresentation of property

Sellers or agents may decide to give false information regarding the features and conditions of a property to inflate its value. You need to conduct a thorough inspection and seek professional advice to ensure that the information and value match the property’s.

Wire frauds

Wire frauds refer to scams that take place over interstate wires. This includes phishing, telemarketing fraud, and spam-type schemes. A person may also pretend to be a real estate agent by hacking into your contact information or calling you to deposit money into a fake bank account.

What You Should Do Any fraud may cause you substantial losses or make you face legal consequences. Always remain vigilant and conduct thorough research before entering real estate deals and transactions. If you suspect fraud or encounter suspicious activities, report them to the relevant authorities. You should also consider working with verified real estate agents and professionals whenever you are looking to buy, sell or rent a house.