Fraudulent property sales are a growing problem nationwide. With home title theft, criminals work in two ways. They either commit a fraudulent title transfer of a property to an alias name or a third party, or they commit identity theft (by creating fake IDs and documents) of the actual owner and then list the property for sale. An unsuspecting buyer can then purchase a property that’s been stolen from its legitimate owner unawares. Here’s how to guard yourself from getting ripped off in a fraudulent purchase.
Who is most at risk for home title theft?
Criminals committing these brazen acts usually target unoccupied properties with an inattentive owner. This could be a property with a home that is vacant or an undeveloped piece of land. The fraudster may list it through an agent or as for sale by the owner, which lowers the thief’s risk of a vigilant real estate agent sniffing out the fraud. If a buyer takes the bait and buys, especially in a sale-by-owner transaction, the buyer’s funds are sent to the crook’s bank, usually overseas. The property’s legitimate owner is also ripped off in a fraudulent title transfer, although unaware of it at the time.
How do fraudsters commit home title theft?
The thief finds a vacant or undeveloped property, looks up the owner on public records, and then extends his online search for personal information on that owner. He then commits identity fraud, creating a false ID using enough identifying details to fool a county clerk, a real estate agent, or a title company into believing he is the legitimate owner. Who the crook deals with determines how he intends to cash in on his purloined property.
- The simplest method is for the crook to download and complete a quitclaim deed form, use the fake IDs posing as the legitimate owner at a county clerk’s office, and fraudulently transfer the property to a bogus third party, after which he can monetize it in various ways, including selling it to an unsuspecting buyer.
- The fraudster could pose as the legitimate owner and hire a real estate agent to sell the property and collect the equity from the proceeds. This is the preferred scam with vacant properties.
- The crook could pose as the legitimate owner or use the quitclaim method to list the property as a rental and receive the monthly rental income.
Watch for these red flags!
- Be attentive if a vacant property or land is offered at a price too good to be true, especially if the seller wants a quick closing.
- Often, these scams originate from overseas, though the fraudulent owner will claim to be in the US, just not nearby to meet in person. Ask to meet the seller in person or for an online video meeting. It’s a major red flag if he will not meet, won’t let you see him on a video, or only uses a still photo.
- How long has the current owner had title to the land? If the current owner listed recently acquired the property in a title transfer and is selling the land quickly, this is a huge red flag.
- Be attentive in email communications from the seller for grammar and syntax flaws indicating a foreign actor.
- Ask for details the owner should know about the property, and be very cautious if he cannot answer correctly.
- Research the owner on social media and look for photos. If you’re able to get a photo, see if the seller matches the person on the video call.
Useful links
You can spot an overseas operation with these resources:
- You can confirm the seller’s telephone number via https://phonevalidator.com.
- Check an IP address with https://whatismyipaddress.com.
- Verify passport information with https://emvlab.org.mrz/.
It is also essential to report incidences of home title theft to the following platforms: www.reportafraud.org and https://complaint.ic3.gov. Time is of the essence!
Related – The Nightmare Cybercrime Targeting Home Buyers
