Protect Yourself From Real Estate Listing Fraud

Written by TAWANNA VEROCK / Associate Publisher

As a REALTOR, you know it’s important to put your best foot forward when listing properties. You also know that real estate listing fraud is an unfortunate reality of doing business in the industry. But how can you protect yourself and your clients from becoming victims of fraud? In this blog post, we’ll discuss the various types of real estate listing fraud, how to identify them, and how to protect yourself as a REALTOR. By taking the right steps and remaining vigilant, you can ensure that you are not taken advantage of and that your clients get the best possible outcome.

What is real estate listing fraud?

Fraudulent real estate listings are becoming more common as criminals target unsuspecting home buyers and sellers. Listing fraud occurs when someone uses false or misleading information to list a property for sale, usually in an attempt to steal the down payment or other funds from the unsuspecting buyer.While most real estate agents are honest and ethical, there are a few bad apples out there who are looking to take advantage of people. That’s why it’s important for REALTORS® to be aware of the signs of listing fraud, so they can protect themselves and their clients from becoming victims.

Here are some red flags that may indicate a listing is fraudulent:

- The listed price is significantly lower than similar properties in the area

- The property has been on the market for an unusually long time

- The listing agent is unresponsive or evasive when asked questions about the property

- The agent refuses to provide a tour of the property or meet in person

- The listing includes fake or outdated photos, or no photos at all

- The contact information for the agent or owner is fake or incomplete

- There are grammatical errors or other red flags in the listing description

How can REALTORS protect themselves from fraud?

There are a few things that REALTORS can do in order to protect themselves from fraud when it comes to real estate listings. First, they should always be on the lookout for anything that seems suspicious. If something doesn't seem right, it's better to be safe than sorry. Second, they should never give out their personal information to anyone unless they are absolutely sure that the person is who they say they are. Third, if they are ever asked to wire money or send a check to someone, they should make sure that they know the person well and trust them before doing so. Fourth, they should keep all of their communication with clients and potential clients secure. This means using a secure email service and never sharing passwords with anyone. Lastly, if they ever have any suspicions about someone or something, they should report it to the proper authorities. By following these simple tips, REALTORS can help keep themselves safe from fraud.

What are the consequences of being a victim of fraud?

The consequences of being a victim of fraud can vary depending on the type and severity of the fraud. Generally, victims may suffer financial losses due to stolen money or property, as well as emotional distress from the experience. Victims may also be subject to identity theft, which can cause further damage to their credit score, credit history, and other personal information. Additionally, victims may be held liable for any unpaid debts incurred by the fraud perpetrator in some cases.

Who is most at risk for real estate listing fraud?

Anyone can be a victim of real estate listing fraud, but there are certain groups of people who are more at risk. For example, people who are buying or selling a home on their own (without the help of a real estate agent) are more likely to be targeted by scammers. This is because they may not be as familiar with the process and may be more trusting of the person they are dealing with. Other groups at risk include those who are buying or selling property in another country (where they may not be as familiar with the laws and regulations), and those who are using online listings to find a home (which can be easier for scammers to manipulate). How to report fraud

If you believe that you have been the victim of real estate listing fraud, it is important to report it as soon as possible. In addition to reporting fraud to NAR, you should also contact your local law enforcement authorities and file a police report. Be sure to keep all documentation and evidence of the fraud, as this will be helpful in pursuing any legal action against the perpetrator.

Real estate listing fraud is a real problem and REALTORS must take steps to protect themselves. While it can be difficult to detect fraudulent listings, there are certain signs that you should look for when vetting potential buyers or sellers. Additionally, taking proactive measures such as having clear contracts in place and conducting background checks on clients can help minimize the risk of being scammed. With the right precautions in place, REALTORS can enjoy greater peace of mind while continuing to serve their clients with professionalism and integrity.