Scam Alert: Fraudulent Sellers & Buyers
February 2, 2023
The U.S. Secret Service reports seeing an increase in scams where criminals contact real estate agents about listing vacant properties without liens. These criminals are looking to sell property, usually below market value, for cash and quickly. According to DPOR, “The scam commonly targets unencumbered and vacant lots owned by persons out of state. With this scam, Virginia real estate licensees may be contacted by a person acting as a seller seeking to have a vacant lot sold quickly and under market value.”
The criminals will often claim that there is some sort of emergency—family or medical—or that they are stuck abroad, to explain why they are looking to sell so quickly. They will also insist on conducting the entire transaction virtually.
So what should you watch out for?
- Sellers who want to conduct the entire transaction virtually and do not want to meet “face to face” even by video call
- Sellers who are looking to sell their property fast, for cash, and/or below market value, especially if there are no liens on the property
- Photo IDs, such as driver’s licenses or passports, that are barely legible
What can you do to protect yourself?
- Conduct independent research on property ownership through the county land records
- Insist on meeting with the seller—either in person or by video call
- Insist on a known settlement company or attorney being involved in the transaction
- If something seems off, speak with your broker about further steps you can take
More details about this scam are available on DPOR’s website.
If you encounter a scam, report it to the FBI on their website. If you or a client has been the victim of an online scam, report it to both the local law enforcement and the local FBI Field Office.
You might also like…
Ensure Your “Touring”—or Buyer—Agreements are Legal
By Laura M. Murray - May 2, 2024
A well-known property portal has recently announced it will have a “touring agreement” to be used with buyers who have been acquired through their lead-generation service. The “touring… Read More
“I have a limited service listing, what are my duties to my client?”
By Jon Haley - May 2, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
Home Inspection Reports and Copyrights
By Santiago Montalvo - May 2, 2024
What you need to know: In short, when you commission a work for hire, you need to be mindful of who keeps the copyrights for it. The copyrights… Read More