Fraudulent real estate listings are rising throughout the country. We have recently had numerous instances of this occurring in southeastern Wisconsin. These fraudulent listings disrupt transactions and harm your clients.
A fraudulent listing in real estate is a false or deceptive advertisement for a property, typically created with the intent to scam or mislead potential buyers, renters or investors
With the market in full swing, we want to remind you of a few key points to avoid dealing with a fraudulent client. Learning common warning signs is the best way to protect yourself from real estate scams.
5 Steps to Take to Avoid a Fraudulent Client
1. Meet with your clients in person and not exclusively over email. Be cautious of out-of-state sellers who own property in Wisconsin.
2. Verify your potential client’s identity. Use caution when reviewing digital images of driver’s licenses, as they can be faked. Search the local municipality website to find out who the current property owner is and look for contact information online or request a copy of their driver’s license.
3. Ask the potential client’s preferred title company to mail an Identity Verification letter to the seller listed on the tax bill, instructing them to call the title company to verify their identity.
4. Never engage in off-MLS transactions, no matter how good the deal is. This has become a common spot for fraudulent listings to occur.
5. If the listing seems too good to be true, or something seems off, double-check and seek a second opinion.
With real estate fraud schemes increasingly targeting vacant land and absentee owners, this guidance is more critical than ever. Stay vigilant. Stay compliant. Safeguard your reputation.