Since the pandemic, a listing scam has begun to get more prevalent: owner impersonation. People pretending to be the owner of a property has been issue for years, commonly posting as FSBOs, leasing companies, or landlords on social media sites. But I’ve noticed an increase of scammers contacting real estate agents to sell or lease the property, resulting in listings being placed in a trusted location: the MLS.
Keys to spotting them:
- Property Is owner-unoccupied or vacant
- The owner can’t provide VALID ID (not illegible/fake) that matches ownership record
- The email address or phone numbers are from another country (orange flag)
- The owner’s appearance doesn’t match owner profile (research owner on Internet – age mismatch is common for starters)
- All communication is electronic
- The price is below market value, or the price recently dropped significantly
- The owner is overly agreeable to making concessions
- Evasive answers, or refusal to address concerns
- The Seller “happens to know” a local notary
- The deed has been altered.
- The owner refuses to provide a title document.
- Promise of an agent bonus, further opportunities to buy/sell/lease
- If there’s no mortgage, it’s easier for a “seller” to forge the real seller’s signature, sign the property over to themselves, and then offer it for sale.
- The owner tries to rush the pace – including getting down payment
- The owner is unable to attend the closing in person
It’s important that the owner is properly identified by the agent, ensuring they match public record. It’s more complicated if the property is owned by a business entity. Most commonly, the business registration contact can be searched at your secretary of state website, but there’s local variation on this point, and verification of valid contacts may take additional steps. Taking care to properly identify that one is dealing with the actual property can reduce the risk of falling prey to an owner impersonation scam.