Property Sale Scams Resources
March 5, 2024
AAR is aware of several types of fraudulent activity related to real estate. There has recently been a rise in reported cases of scams related to fraudulent attempts to sell both occupied homes and vacant parcels of land. These scams involve wire fraud, mortgage fraud, vacant land fraud and more. We encourage all Alabama REALTORS® to educate themselves on common scams, red flags to look out for during a transaction, and best practices for avoiding scams. AAR's Associate Counsel, Jayme Kiszla, has broken the issue down for you below, and has compiled a list of resources you can use to help prevent fraud.
Resources for Preventing Fraud:
Downloadable Resources:
Educate Yourself on Scams, Red Flags, and Best Practices
Alabama REALTORS® has created a one-page, downloadable resource you can share with your office and colleagues. This resource outlines common scams, red flags to be aware of, recommended best practices for avoiding scams, and what to do if you suspect you've encountered fraud.
Reduce Your Risk For Wire Fraud
Wire fraud is a threat to everyone in the real estate industry. That's why our partners at Pearl Insurance have created a one-page, downloadable resource with tips for reducing wire fraud risks. This document outlines 12 risk reduction techniques designed to protect your livelihood and reputation from the damage fraud causes.
Probate Court Property Search Tool:
AAR is aware of the following counties offering consumer protection services related to real property. The service allows property owners to register to be notified if any land record (such as a deed, mortgage, or lien) with their name on it is recorded with the Probate Court. These services are free and their use is recommended by Alabama REALTORS®. However, users should be cautioned that these services do not eliminate all possibility of fraud. This list will be updated as additional counties offer this tool. Click on the county for a link to their website.
Known Participants:
Alabama REALTORS® Legal Line:
If you are an Alabama REALTORS® member and you have questions about fraud or scams, real estate license law, AAR's Statewide Legal Forms, or basic real estate law, our legal team is here to help. Contact the Alabama REALTORS® Legal Line. This convenient and complimentary resource is here to help you navigate the constantly evolving field of real estate.
Reporting Fraud:
To report fraudulent activity, contact both your local law enforcement office and the FBI using https://www.ic3.gov/
NAR Resources:
The National Association of REALTORS® has also crafted resources dedicated to protecting REALTORS® from fraud.
NAR Broker Risk Reduction Tips: https://www.nar.realtor/legal/hot-topics-for-brokers#cybercrime
NAR Mortgage Closing Scams: https://www.nar.realtor/financing-credit/crimes/protect-your-money-from-mortgage-closing-scams-when-buying-a-home