Even savvy buyers and experienced homeowners can fall victim to real estate fraud. One particularly sneaky scam has become more common in recent years - and it can cost buyers tens of thousands of dollars if they’re not careful

How the Scam Works

This scam typically starts when a fraudster posts a property for sale without the knowledge or consent of the actual owner. These fraudulent listings are often for vacant lots, lands, or unoccupied homes. Since no one is currently living there, it doesn’t raise suspicion when a fake “For Sale” sign goes up or when the listing appears online. 

Once the buyer expresses interest, the scammer pretends to be the property owner and begins communicating only via email or phone. They avoid in-person meetings and refuse video calls. These red flags are often justified with excuses like being out of state or unavailable due to travel.

To make the deal more enticing, the scammer will typically offer the property below market value and push for a quick closing. In some versions of the scam, they’ll insist on using their "preferred" title company - which turns out to be completely fake and often located out of state.

If the buyer proceeds and wires money to the fraudulent title company, that money is gone - and there’s usually no way to recover it. 

How to Avoid Becoming a Victim 

Fortunately, there are several ways to protect yourself from falling for this real estate scam:

1. Verify the Seller’s Identity: Always ask your real estate agent to confirm if they’ve met the seller in person. You or your agent can also verify whether the name matches public ownership records (such as those held by your county appraisal district).
2. Use a Local, Trusted Title Company: Never feel pressured to use an unfamiliar or out-of-state title company. Your agent can help you connect you with a reputable, local title company with a proven track record.
3. Double-Check Wiring Instructions: Wire fraud is one of the fastest ways to lose money in a real estate transaction. Always verify any wiring instructions by speaking directly with a trusted contact at your title company - ideally someone you’ve already met or spoken with beforehand. 

Your real estate agent will never ask you to write money directly. Wiring instructions should only come from the title company, and you should always confirm them in person or by calling a known phone number - not one sent via email or text.

Real estate scams are becoming more sophisticated, but with a little awareness and cation, you can stay protected. Work with trusted professionals, double check what you’re told, and don’t rush into deals that seem too good to be true.