How to Protect Yourself from Real Estate Fraud — Before It Happens

 

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Protect Yourself from Real Estate Fraud: What Everyone Should Know

Real estate fraud can happen to anyone — homeowners, renters, investors, or even people just browsing listings online. Scammers are getting more creative every year, using fake listings, identity theft, and even fraudulent property transfers to steal money or ownership rights.

The good news? A few simple precautions can help protect you, your identity, and your property. Here’s how to stay one step ahead:

1. Verify Who You’re Dealing With

Before you share any personal information or money, confirm that the person or company you’re working with is legitimate. Look them up online, check reviews, and verify licenses. In Texas, you can confirm that a real estate agent, lender, or title company is licensed through the Texas Real Estate Commission.

If someone pressures you to act quickly or discourages you from asking questions, that’s a red flag — slow down and verify.

2. Be Extremely Cautious with Wire Transfers

Wire fraud is one of the most common real estate scams. Criminals often hack emails and send fake “updated” wiring instructions that appear to come from your Realtor®, lender, or title company.

Always verify wiring instructions by phone using a known, trusted number — not one you got in an email. Never rely on last-minute changes or messages that don’t match prior communication.

3. Protect Your Personal and Financial Information

Scammers are constantly looking for opportunities to steal personal data. Be cautious when sharing sensitive information like your Social Security number, bank account, or ID.

Use secure online portals whenever possible, and avoid sending documents through unencrypted email or text. Strengthen your security with two-factor authentication and strong passwords, and regularly monitor your credit report for unusual activity.

4. Watch for Fake Listings and Too-Good-To-Be-True Deals

Fraudsters often copy real property listings and repost them on social sites like Craigslist or Facebook Marketplace. They might claim to be the owner and request deposits or application fees upfront — only to disappear once they’ve received payment.

If the price seems suspiciously low or the “owner” won’t meet in person, proceed with caution. Always verify ownership through public records or your Realtor® before sending money.

5. Regularly Check Your County’s Property Records

Even if you’re not currently buying or selling, it’s smart to keep tabs on your property. Title and deed fraud — where someone illegally transfers ownership of your home — can happen quietly.

Take a few minutes every few months to review your property record on your county’s official website. Many Texas counties now offer free property alert systems that send an email if any documents or changes are filed in your name. If available, sign up — it’s quick, free, and one of the best tools to catch potential fraud early.

6. Understand and Use Title Insurance

Title insurance is one of the best protections against ownership disputes or fraudulent claims on your property. If you purchased your home with a mortgage, you likely have a lender’s title policy — but it’s equally important to have an owner’s title insurance policy to protect your personal ownership rights.

If you ever discover suspicious activity involving your property or deed, contact your title insurance company immediately. They can help investigate and, in some cases, assist in covering costs to resolve title issues.

7. If You Suspect Fraud — Take Action Fast

If you notice suspicious filings or believe your property information has been tampered with:

Quick action can make a big difference in preventing further damage or loss.

Bottom Line

Real estate fraud isn’t just a problem for buyers and sellers — it’s something everyone should watch out for. By verifying contacts, staying alert to scams, protecting your identity, and monitoring your property records, you can help safeguard your finances and peace of mind.

If you ever have questions about a property transaction, title insurance, or how to protect yourself from fraud, we're always happy to help.

Melissa & D'Ann


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