How can you prevent real estate fraud?

Wire fraud is growing fast. $679 million lost to it 2017. $2.7 billion lost in 2022. 2023 will be worse. So what can you do to prevent. -Call don't click. When you get an email with wiring instructions call to confirm. Do not call the number on the email. Confirm number elsewhere then call that number and confirm. Call your bank to confirm wiring instructions being sent. You must know exactly where it is going. If different from email instruction. Stop. Just Stop. Remember wiring instructions rarely get changed last minute. Very very rarely. So a change of instruction is a Big Red Flag.

There is value in being first lean if one chooses to lend money for a potential future return in real estate. There is value in long term local relationships when investing in real estate. It is hard to stay leveraged through a full interest rate cycle if one is not willing to deleverage themselves the market will do it for them at the worst possible time. Keep an eye out for over leveraged players in real estate they can bring others down with them and invite problems into their world.

To prevent real estate fraud, work only with licensed agents, research property thoroughly, beware of deals that seem too good, use secure payment methods, avoid sharing sensitive information online, and consider legal assistance for contract reviews. Stay vigilant, trust your instincts, and seek professional advice when necessary.

Do not email any of your documents to your lenders. It is very important to only use a secured link to upload your documents. This will ensure that your personal information does not get into the wrong hands. Your lender should be able to send you a secured link to use for all of your uploads.

The County Clerk in Orange County, NY started a fraud alert program. Since all important documents in NY have to by filed with the County, you can sign up and they will notify you if any document with your name is filed with the Clerk's Office.

Document review is where the game's won or lost, folks. First up, names and dates—double-check 'em. A single typo could mess up the whole deal. Next, scrutinize any 'Subject to' clauses; they're often traps for extra fees or term changes. If legalese gets too thick, bring in your lawyer for a cameo. They'll decode what's really going on. Ensure you're reading the final doc version. Anything marked "Draft" is a red flag for potential fraud. Use digital tracking tools to log who's had their eyes or edits on a doc. And never underestimate a title search—a clean title means you're in the clear. Trust your pros, but verify their creds. Second opinions can be gold. Stay vigilant!

Always ask for a genuine along with a copy of it. Cash payments should be avoided unless there are strong reasons for it. Proof of payment should always be available preferably in documentary form; it is important to be able to provide it in a professional manner whenever demanded by anyone in a court or tribunal.

Always ask for a genuine along with a copy of it. Cash payments should be avoided unless there are strong reasons for it. Proof of payment should always be available preferably in documentary form; it is important to be able to provide it in a professional manner whenever demanded by anyone in a court or tribunal. Even if you provide an original is available, it is important to preserve original material in a safe place.

Documentation is the major evidence in property transaction. In reviewing and verifying the documents, it goes beyond the present Parties to the transaction, it goes as deep as verifying the previous ownership of that property. From; who owned the property before it got to the seller? How the person got it as at then? Was it sold by the Principal members of the family, where it was sold to him by a family? Where it was sold by an individual, was it inherited or purchased by that individual? Was it sold my Real Estate Company, how did the Company get the land? How did the property get to the seller? What are the titles of the Property? Are the titles well perfected? All these and more are needed when reviewing documents in Real estate.

Totalmente de acuerdo la necesidad de verificar la historia y trayectoria de los involucrados, tanto desarrolladores como los realtors.

When purchasing a home, there have been documented instances where a fraudster hacked into a title company's systems, and then the fraudsters send what looked like (but were not) legitimate emails to those purchase a home - instructing the home buyers to wire funds to a different bank account- one not belonging to the title company but to the fraudster. EVERY SINGLE TIME you wire money to your settlement company, call that settlement company, get a live person and verify that the wiring instructions are correct. This is very rare, but it has happened. And if funds are wired to the wrong account, likely the money is gone. It's best to be safe than sorry.

I will advice using bank transfer or any means of payment through banking. It is safe and traceable that way compared to hand to hand means of payment.

Ditch the Cash: Yeah, it feels cool to wave a wad of bills, but it's a fraud magnet. Stick with traceable options. Say No to Wire Transfers: They're the fast lane to losing your money. Fraudsters love 'em because they're nearly impossible to trace. Escrow is Your Friend: Use escrow services for large sums. They're the bouncers of real estate—nothing gets past them without scrutiny. Checks and Cards: If you must, use checks or credit cards. They leave a paper trail like breadcrumbs back to the payer. Receipts are Golden: Always get a receipt or payment confirmation. That's your "I told you so" in case anything goes south. Bottom line: keep it traceable, keep it safe, and always keep your eyes on the prize. Stay sharp, everyone!

It was a typical Tuesday when Jane logged on to buy concert tickets for her daughter’s 16th birthday. Scanning sites, she found unbelievable deals & quickly sent the seller a money order. But the tickets never arrived the seller was a scammer using fake ticket listings to defraud buyers. Stories like Jane's are common in online transactions. That's why it's critical to use secure payment methods that offer protection, like escrow services or credit cards. These provide safeguards, evidence of payment, & increased ability to recover funds if things go wrong. Avoid risky methods like cash, wire transfers, prepaid cards or money orders they're like handing over money to a stranger. Stick to more secure known options .

As the case may be, wire transfer is not bad, but must be verified. The name on the documents must correspond to that on the account. Avoid third party wire transfer.

Spot the Red Flags: Emails or texts promising the moon and stars? Classic red flags. Keep your radar up for language that feels pushy or overly urgent. Triple-Check Listings: A dream deal on a property can turn nightmarish. Verify listings through multiple channels before biting the bait. Don't Click, Just Delete: Unknown links are clickbait for your personal info. Don't engage, just hit delete. Reverse Lookup: Get a call from a number you don't recognize? Use reverse phone lookup to see if it's legit or a known scam line. Do Your Homework: Vet any unsolicited offers with a Google search or a peek at the Better Business Bureau. Trust Your Gut: If something smells fishy, it probably is. Trust your instincts and proceed with caution.

If wire instructions are sent via unsecured email systems, assume it’s fraud. Only accept wire instructions via secured portal and always call to verify numbers. Create a code word between real estate agent, customer and title agent. Use the code word when verifying numbers. Do not email the code word.

A smooth transaction is most likely to occur when the right professionals are involved and utilized to the fullest. Make sure there is a realtor representing all parties in a transaction - each side with their own representation. Realtors are professionals and have experience with many different transactions, knowing what can go right and what can potentially go wrong. If not using a promulgated form written by a lawyer, then use a lawyer to draft the contract. Make sure a title company is being used to protect you and the title changing process. If you need to borrow money, then make sure a good lender is on your side. There are many others, as well. The realtors will coordinate all parties in the best way possible to get you to closing.

The residential real estate model is broken. The traditional process is stressful and opaque. Fees aren’t transparent and some are egregiously inflated. The legacy brokerage model and the 600 MLS incentivize sales, not support and are very inefficient. It is a system set up 120 years ago to benefit insiders - not the consumer. The core operates like there is no internet. It has to change or it will wither away as technology keeps chipping away at it. Richard Montgomery DearMonty.com

Have you been approached by a stranger with a free offer? We instinctively feel wary, guarding personal info & money. Real estate deals can provoke the same wariness when arriving uninvited. Jason got a postcard claiming he could get thousands more for his house without listing it. But after calling, he learned it was a scheme to harvest addresses for junk mail. Like Jason, view real estate windfalls out of the blue with skepticism. Research unfamiliar companies making appealing overtures, as the deal of a lifetime could be a ruse to get your details. Trust your gut when something seems fishy, like avoiding giving strangers your credit card.

Quick Action: Timing is crucial. The sooner you report, the better the chance of halting the fraud in its tracks. Local to Federal: Start with local police, but don't stop there. The FTC and CFPB are your go-tos for making sure the bad guys get more than just a slap on the wrist. Financial Alerts: Notify your bank and credit card company ASAP. They have protocols to lock things down and limit damage. Document Everything: The more evidence, the better. Screenshots, emails, texts—gather them up as your arsenal against fraud. Share to Care: Alert your network. Your cautionary tale can arm others against making the same mistakes.

When you spot fraud, speak up. Silence lets criminals win. Like phoning 911 when you see a break-in, reporting real estate fraud stops victimization. I'll never forget when my friend James discovered an identity thief took out a mortgage in his name. James quickly called authorities. His vigilance halted the crime. If you suspect fraud or theft, immediately contact the police, FTC, CFPB. Your actions protect yourself and others, preventing financial harm. Together we can lock out real estate criminals. Speak up, because staying silent enables wrongdoing.

Navigating the online real estate, I've noticed some fraud tactics that aren't always on the radar. From my observations: 1. Fake Tours: virtual walkthroughs of properties that don’t really exist or aren’t for sale. 2. Identity Fraud: manipulated online records suggesting false property ownership. 3. Geo-Spoofing: listings that mislead about a property’s real location. 4. Bait and Switch: enticing listings that suddenly become “unavailable,” redirecting to lesser options. 5. Over-the-top Staging: digital tweaks that mask property flaws or exaggerate features. Stay sharp and informed!

Let's be realistic, few people spend the time to understand a transaction. How many actually vet an agent? Most use inexperienced agents, "a friend", or frequently with new homes, no agent. Experienced agents work with experienced closing attorneys - it's critical they explain the process. The average buyer/seller does this once every 5-10 years, work with vetted pros and listen to what they suggest. My closers are hyper vigilant with communications and ensuring there is an understand of the process. Trust your people.

Below are four steps that have helped many home buyers in the past: 1. Know what you can do. This is the typical pre-approval. However ... knowing what the bank would approve is not equal to what is wise to do, so the next step is ... 2. Obtain enough information to know what you want to do .. what would be the payment and what funds would be required 3. Compare what home & location you prefer with the costs associated, and make adjustments, as needed. Of note, sometimes an adjustment is not buying and waiting giving yourself more time for either clarity or to save more. 4. Surround yourself with experts who are good & care about you more than they care about their own profit. Hope this helps!

Have a conversation with your clients about it, don't assume they will know to be vigilant. If they decide to wire the funds for their transaction, the wiring instructions should be provided through a known portal for the closing attorney or title company. Make sure your clients are aware of the potential for fraud and that they don't deviate from the known instructions in the event they receive a text or email with "updated" wiring instructions. Make 100% certain that they know to stop and contact their agent or the closing attorney at a known number (not the number provided in the email) if this happens.

Visit the subject property. Your eye is your market as far as real estate is concerned. So, site visitation is not a necessity but Compulsory