Common Real Estate Scams and How to Avoid Them

Real estate transactions involve large sums of money, making them a prime target for scammers. Whether you’re buying, selling, or renting a property, it's crucial to stay informed about common real estate scams and learn how to protect yourself. In this blog, we'll explore some of the most frequent scams and provide practical tips to avoid falling victim.

Fake Property Listings

How It Works

Scammers create fake online listings with attractive prices and appealing property photos. They often claim to be out of town and request an advance payment or deposit before allowing a viewing. Once the money is sent, they disappear.

How to Avoid It

Always verify listings on trusted real estate platforms like Easyprops.com.

Never send money without visiting the property and confirming ownership.

Conduct a reverse image search of the listing photos to check for duplicates online.

Title Fraud

How It Works

Scammers forge documents to transfer property ownership to themselves and then sell or mortgage the property without the real owner's knowledge.

How to Avoid It

Regularly check your property records with local land registries.

Use title insurance to protect against fraudulent claims.

Be cautious if you receive unexpected notices regarding your property.

Rental Deposit Scams

How It Works

A scammer posing as a landlord collects security deposits and advance rent from multiple prospective tenants for the same property and then vanishes.

How to Avoid It

Meet the landlord or property manager in person.

Demand a written lease agreement before making any payments.

Verify the property’s ownership through public records or a trusted real estate agency.

Mortgage Fraud

How It Works

Fraudsters offer fake mortgage deals or “too-good-to-be-true” refinancing options. They may ask for personal financial information and then use it to commit identity theft.

How to Avoid It

Only work with licensed mortgage lenders.

Be wary of lenders who pressure you into quick decisions.

Never provide personal information over email or phone without verification.

Foreclosure Scams

How It Works

Scammers prey on homeowners struggling with mortgage payments, offering to "save" their property by transferring ownership temporarily. Instead, they take full control and sell it without the owner's consent.

How to Avoid It

Consult a legal professional before signing any documents.

Avoid companies that demand upfront fees for foreclosure assistance.

Contact your mortgage lender directly to explore legitimate options.

Bait-and-Switch Scam

How It Works

A seller or agent advertises an attractive property at a low price but later claims it's unavailable. They then push a different, often lower-quality, property at a higher cost.

How to Avoid It

Be skeptical of deals that seem too good to be true.

Research the real estate agent’s background and reviews.

Stick to reputable real estate websites and agencies.

Wire Fraud & Payment Scams

How It Works

Scammers intercept legitimate real estate transactions and send fake emails with fraudulent bank details, tricking buyers into wiring money to the wrong account.

How to Avoid It

Always confirm payment details directly with the seller or agent before transferring money.

Be cautious of urgent or last-minute changes in payment instructions.

Enable two-factor authentication for email accounts to prevent hacking.

Final Thoughts

Real estate scams can be devastating, but by staying informed and vigilant, you can protect yourself from fraudsters. Always work with verified agents, double-check property records, and avoid making payments without proper verification.

Looking for a safe and reliable real estate platform? Explore trusted listings on Easyprops.com today!