A California county is under siege by fraudsters pretending to be property owners and tricking real estate agents into selling properties they do not own.
According to a press statement from the Office of the District Attorney for San Luis Obispo County, the fraudsters identify vacant or lien-free properties and attempt to negotiate their sale with local real estate agents. Seven cases of this chicanery have reported within the county since mid-April, although it is unclear how long this scam has been taking place in the county or if any of the fraudulent sales were completed.
“This scheme has particularly affected the elderly and foreign real estate property owners as there are no means to automatically notify the legitimate owners,” said the district attorney’s office. “The burden of verification is on the real estate and title companies.”
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This same type of fraud has been occurring in southwest Florida several times in the past, and more recently in the past year. It usually happens when prices are rising. As a Realtor, and usually the first point of contact by these scammers, I try to verify the seller is legitimate in several ways. For example, have them call you rather than just e-mail, text, or social media. Then get a number and call them back. Request they send you a copy of the title policy, if they have one, as, unlike the Deed, this is not part of the public records. Have them e-mail you a copy of their photo ID, like a passport or driver’s license. Some fakes are very obvious, but many title companies are able to tell you if it’s real. Also, when you suspect a possible fraud, mail a letter to the owner of record shown on the tax bill. If Realtors do their due diligence, it can prevent the fraudulent listing and save time and trouble for all.
5% of homeowners can locate their title policy. No reason if you don’t know them why you cannot ask for drivers license and then verify
So simple to resolve, go to the county records
Same in the State of Washington…
This is rediculous, Realtors have acces to the title reords via the MLS. The first stp in taking a Listing is to verify the ownership, and obtain proper written consent to market the property.
I assume the issue is trying to determine if the person contacting you is, in fact, the person say they are. As we don’t normally start the listing and marketing process with a notarized document, even that verification wouldn’t come until later. Seem like something would start to smell funny pretty early.
This is similar to historical frauds involving identifying vulnerable properties and owners and attempting to get cash out refi-s or 2nd TD’s on them. Some counties mail notices to owners when a T-deed is being filed, but that’s going to arrive long after the fact. Lenders too have to watch and verify borrowers bonafides.
I totally agree with the above. The property tittle has to be verified prior to a transaction taking place.
As a REALTOR for over 40 years I am outraged by the actions of these criminals.
Any Broker worth their salt whould shut down these transactions within 48 hours of contact…ijs
As a realtor, I usually have a good sense if someone is scamming. I have access to public records and also a lot of good contacts at the local title companies who are happy to help do research.