Signs of Real Estate Fraud To Watch Out for
Real estate is one of the largest financial investments most people will ever make. Unfortunately, because real estate transactions involve large sums of money, they are a common target for fraud. In Tennessee, many have fallen victim to real estate fraud. Real estate fraud can happen in any type of transaction, so whether you are purchasing, selling, leasing, or investing in a property, you need to be careful.
Recognizing the warning signs of real estate fraud early can protect you from becoming a victim. It can prevent financial losses and legal complications. Below, we share some of the key signs of real estate fraud to keep an eye out for.
1. Pressure To Act Quickly
Pressure to act fast is a major red flag in any real estate transaction. If a seller is pushing you to sign documents, make payments, or make a decision, without giving you time to go over the details, they might be trying to rush you into a bad deal. Phrases like “A lot of people have shown interest in this property,” or “This offer won’t last long,” are major red flags.
A genuine real estate agent or broker will give you time to review documents, decide, and even seek legal advice before committing.
2. Suspiciously Low Price
As the saying goes, if the deal is too good, think twice. If a property is listed far below market price, proceed with caution. Scammers often lure buyers and investors with properties listed far below the market value.
Before proceeding, consult a licensed real estate professional for help comparing prices with similar listings in the area. You can also visit your specific county property assessor’s website. Many counties have online portals where you can search property records, including the last appraised value of a property.
3. Unlicensed Real Estate Agents
Another major red flag that can indicate a scam is if the real estate agent or broker is not registered with the Tennessee Real Estate Commission (TREC). Before proceeding with a real estate deal, verify whether the agent or broker is licensed in Tennessee. TREC has an online database where you can search for an agent’s or broker’s license status.
4. Incomplete or Suspicious Documentation
Look out for incomplete or suspicious documents. Be careful if;
- Documents have spelling or formatting errors
- The property title seems to be missing pages
- Signatures or notarizations look off
A skilled Tennessee real estate attorney can help you review documents for authenticity before closing a deal.
5. Title or Ownership Discrepancies
Title fraud is one of the most damaging forms of real estate fraud. It happens when someone unlawfully transfers property ownership without the true owner’s approval or awareness. Signs of title fraud include several unclear recent ownership transfers and inconsistencies in documents, such as errors in the land size or the owner’s name. If anything seems vague, it is crucial to have an attorney or title professional review the property record.
6. Requests for Unusual Payment Methods
Have you been asked to make payments through cryptocurrency, personal transfers, or other unusual methods? That could be a sign that the deal is a scam.
Contact Us for Legal Help
Our skilled Knoxville real estate attorney at Reynold, Atkins, Brezina & Stewart, PLLC can help protect your rights and ensure your transaction is handled legally and safely. Contact us today to schedule a consultation.
