Real Estate Scams to Beware Of

 Posted on July 12, 2024 in Real Estate

As if real estate transactions are not stressful enough when all parties are acting in good faith, there has been a recent increase in real estate scams and the use of deceitful practices. This is likely because the real estate market has been so difficult to break into in recent years. Most of these scams target young, first-time buyers, although any prospective purchaser can be taken advantage of. Sellers can also fall prey to real estate scams. The old adage, "If it seems too good to be true, it probably is," is quite applicable. An experienced DuPage County, IL real estate transactions attorney can often spot scams very readily and can work to protect you from dishonest buyers or sellers.

Common Scams for Buyers to Look Out For 

A few common scams buyers should beware of include: 

• Fake realtors and wire fraud - Someone poses as a real estate agent, usually with the goal of getting you to send a deposit to a fake escrow account. Your money is gone, and the fake realtor disappears. 
• For sale by not-the-owner - Someone pretends to own a property he has no legal right to sell and tricks you into sending money. Buyers may be lured in with unrealistically low pricing. These transactions may even appear "completed" until the real owner turns up wondering who you are and why you are in her house.
• Sight-unseen sales - The seller does own property, but uses old or fake photos to trick you into buying a dilapidated or uninhabitable property. 

Common Scams Sellers Should Watch Out For

Sellers should be wary of: 

• Unsolicited offers - You were not planning on selling your house, but someone made you a great offer anyway. This might be a trick to steal your personal information. 
• The fake check scam - An eager buyer, who may claim to be overseas, is ready to send you a deposit right now. Then, he backs out of the sale and asks for a refund, usually offering a "sob story." You send back the money. Then, you find out the check never cleared and you have lost any money you sent the scammer.
• The fake investor - While there are a lot of legitimate investors buying real estate to turn into rental housing, it is critical to make sure an investor is who he says he is. Fake investors will try to get your house under contract, not so they can buy it themselves, but so they can sell the deal to an actual investor for profit. 

Contact a DuPage County, IL Real Estate Transactions Attorney

Whitacre & Stefanczuk LTD is committed to protecting legitimate buyers and sellers against real estate scams. Our experienced Oak Brook, IL real estate lawyers work to make real estate deals accessible to the average person. Contact us at 773-622-6100 for a free consultation. Mówimy po Polsku.