The last thing you need to be concerned about, whether purchasing, renting, or refinancing the mortgage on a property, is the possibility of being scammed. Unfortunately, those who commit such crimes are becoming more inventive when it comes to targeting customers. According to the Federal Bureau of Investigation Internet Crime Complaint Center, more than 11,578 victims reported fraudulent activity involving real estate in 2021 alone. Here are some common real estate scams you must avoid.

Escrow Wire Fraud

This is by far the most common real estate scam, and it occurs when the email account of your real estate agent gets stolen, exposing your personal information as well as the closing details. Fraudsters create fake websites with the appearance of the financing company you’re dealing with, giving the impression that they’re genuine articles. Then, scammers will send you an email with instructions on where to wire transfer the escrow funds, and before you know it, you’ll be one of the victims.

Notice of Pendency

In this kind of real estate scam, the buyer waits until they’ve reached the closing process and their money is in escrow before asking for a reduction on the accepted offer price, often for “repairs.” If the seller refuses, the buyer will demand cash back instead. If the seller is unwilling to bargain, the buyer may submit a notice of pendency, also known as a “lis pendens.” This effectively implies that the seller can’t sell the property and is compelled to either bargain or wait it out in the legal system.

Forged Deeds

Imagine listing a property for sale, finding a buyer, and getting all the way to the closing stage before discovering that someone else has placed a claim on the house, either covertly or overtly, via a silent claim or forged documents. In the typical scenario, the perpetrator will submit a forged deed to your property to a notary and then have the new deed recorded at the county recorder’s office. If you’re a homeowner with a significant amount of equity, know that you’re a prime target of this scam.

How to Avoid Real-Estate Scams

Scams involving real estate may be quite unsettling, but if you know what to look for, you can easily spot a scammer. It is critical to have a thorough understanding of the parties involved in any real estate transaction. Verify as many details as possible about an individual’s identification, and always do a second round of checks on any financial dealings. In addition, always ensure you have a detailed record of every transaction if, by any chance, you need to register a complaint in the future.

SellMyBuildings to the Rescue

Now that you know the most common real estate scams, it’s time to find a trusted company to find a solution, regardless of whether you’re going through a foreclosure, need to sell the property fast and liquidate, or can’t sell your property at all. At SellMyBuildings, the founder and CEO, Doron Nissim, have been in the real estate industry for over 12 years and is familiar with every nook and cranny. To learn more about our services, visit www.sellmybuildings.com or call (727) 500-2546.