The Ohio Department of Commerce's Division of Real Estate and Professional Licensing (REPL) recently issued a warning for consumers and real estate agents in the state following a rising number of cases involving fraudulent property listings and deeds.
The trend involves people who are contacting real estate agents to list properties they do not own. They aim to take the money after the transaction is completed and disappear thereafter. On the other hand, the buyer is left with a property that does not lawfully belong to them.
"We learned of a situation from an agent who was contacted by someone who claimed to have several properties with multiple owners who all wanted to sell," REPL Superintendent Daphne Hawk said in a press release.
"The agent requested identification of all sellers involved but received only two and she was not confident in their validity. The agent thought it was a red flag that the individual requested to get the properties listed quickly, so she spoke with her broker, and they confirmed the provided driver's license was not valid," Hawk continued.
How To Keep Yourself Protected From Falling Victim to Property Fraud
In 2023, the FBI's Internet Crime Complaint Center received about 9,521 real estate-based complaints that amounted to losses of over $145 million. This exceeded losses related to identity theft, inheritance fraud, extortion, and phishing schemes.
Real estate fraud usually targets people who have significant equity in their homes, which is either because they have paid off their mortgage or they are failing to get any leads for their property. In most cases, these are senior citizens or those who have purchased a second home.
To keep yourself protected, homeowners are advised to review their credit reports regularly and keep their personal information secure. Additionally, homeowners are advised to put monitoring on their property or have a trusted neighbor keep an eye out for any suspicious activity.
If you're a real estate agent or broker, it is advised to have sellers provide a preliminary title search to confirm details about the property, including the ownership. They are also advised to check property records through their local auditor's and recorder's offices.
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