Spotting and Preventing Vacant Property Fraud: A Guide for Real Estate Agents

Spotting the Red Flags

Scammers may try to make their schemes seem legitimate, but there are common signs to watch out for:

• The seller claims to reside in another state or country and insists on communicating only through email.
• The seller is overly eager to close the deal quickly, often proposing a price that seems too good to be true.
• The seller shows little concern about the standard closing costs and appears solely focused on getting the net proceeds as swiftly as possible.
• The email communication from the seller contains typographical mistakes, boilerplate language, or originates from a suspicious foreign domain.
• The seller provides a questionable reason for limited contact, such as working as an offshore engineer or suffering from a severe medical condition.
• The seller insists on using a power of attorney, but the agent under that power does not personally know the seller.
• The seller’s identification appears dubious, with features like pasted photos or a lack of security features.
• The signatures of the seller or notary appear suspicious.
• The seller’s current location does not match the address listed in the county tax records, and the documents provided by the seller are notarized in a different location.
• The seller provides wiring instructions to a bank located in a different place.