Last week, we took a bird’s-eye view of why paying attention to real estate fraud and scams is so essential. Because the baddies out there are getting more sophisticated and slick, it remains vital to be vigilant, prepared, and wary as we navigate transactions, whether as a buyer, a seller, or a REALTOR. 

This week, we zoom in on the buying side and look at several ways it is possible to become a victim of fraud, leading to potentially big financial losses, as well as emotional stress and legal complications.

Fake Listings and Phantom Rentals
Scammers often post fake property listings on popular sites, luring buyers with attractive images and prices. No doubt you’ve seen these, and we hope your antennae are up.

These “phantom” listings might try to gather deposits or other personal information, only for the scammer to disappear once payment is made.

Tip: Always make sure you verify listings through official channels and, if you are a buyer, consult with your REALTOR before making any commitments.

Wire Transfer and Phishing Scams
Another common scam involves intercepting legitimate communications between buyers, sellers, and agents.

Fraudsters pose as real estate agents or attorneys and send urgent wire transfer instructions—usually just before a scheduled closing—preying on the timeframe to deceive clients into wiring funds to scam accounts. Many of our members have encountered this nefarious scheme as well and are aware of the red flags to look for to stop it in its track.

Tip: Always be sure to verify wiring instructions via a known, separate contact method before transferring funds.

Title and Deed Fraud
Finally, and perhaps most potentially damaging, scammers may forge documents or manipulate public records to claim ownership—yes, outright ownership!—of a property, or to steal money from escrow accounts.

This fraud often comes to light during the closing process.

Tip: REALTORS can help buyers on this front by ensuring that all documents are verified and title searches are thoroughly conducted before closing.

Be Afraid—Be Very Afraid

OK, we don’t actually mean for you to be overly nervous or fearful, but we couldn’t resist quoting a line from the 1980s movie The Fly.

The main thing is to stay alert, guarded, careful, and on the lookout for any attempts to defraud you on the buying side of a transaction. Vigilance is a smart approach, and that applies to all other aspects of navigating any property purchase as well.

A Reminder of EMTAR’s Commitment
To reinforce what we noted in our previous blog in this four-part series, we believe it is important to spotlight some of today’s most prevalent and dangerous real estate scams—and, most important, to help consumers and REALTORS identify and prevent them.

Again, this is a reflection of EMTAR’s longstanding commitment to serve alongside our members as “your partner in success,” providing resources and tools aimed at increasing awareness of vital aspects of working with buyers and sellers throughout our communities.

**We hope you will stay tuned for next week’s installment, “Part 3: Scams Targeting Sellers and REALTORS.”**

About EMTAR: Chartered in 1969, our Association’s 1,200+ REALTORS® are a proud part of the 36,000+ members of Tennessee REALTORS® and of the 1.5 million+ members of NAR, all working to serve the public and protect the rights of America’s property owners. EMTAR members are known not only for their unmatched real estate excellence and high ethical standards, but also for being generous, hospitable, others-focused, loyal, hardworking, and eager to help wherever and whenever help is needed.