Minimizing the Risk of Real Estate Fraud

Posted by JC Stock on March 24th, 2020

Every day, people all around the world take part in real estate transactions. Buying condos, townhomes and houses is exciting, but homebuyers can also be at risk of falling victim to real estate fraud if they are not careful. There are many forms of real estate fraud, from fake online rentals and sales to faulty building and duplication of property titles. This may seem overwhelming, but as long as you take some common sense steps to preventing real estate fraud, your risk will be a lot lower. Here's some ideas for protecting yourself against real estate fraud. 

Do Your Research

First and foremost, it's crucial that you do your research about any potential real estate transaction. If you're choosing an agent, make sure you take a look at their reputation and reviews online so that you can get a feel for who these people are. Will they be professional in all their dealings with you, or have any other customers raised red flags? Taking the time to look into things and explore your options will protect your hard-earned money down the line. The more you know, the better choices you can make about your real estate.

Be Skeptical of Speedy Requests

Something else that you should be thinking about is requests for quick payments. There's a proper process to follow for buying or selling a property, and demands that you transfer money at once or risk losing out should sound the alarm. You need to be aware of how buying or selling a home works, so that you can check that your real estate agent isn't doing anything dodgy. It's always better to err on the side of caution and ask questions if you feel like something isn't right. Sketchy emails, text messages and phone calls should also make you think twice about your real estate plans. 

Invest in Insurance

Last but certainly not least, another way to minimize the risk of real estate fraud is to look into all the different insurance options for this purchase. Title insurance is the perfect example. It's just another way to lower the risk of real estate fraud which could put a huge dent in your budget, bank account and livelihood. Real estate fraud is also a huge invasion of privacy and principle, and it's certainly something you want to avoid at all costs. Having that insurance to back you up in the event of real estate fraud can lift a huge weight off your shoulders.