Did you know, according to The American Land Title Association, in 2023, at least one attempt at seller impersonation fraud was made against 28% of title insurance companies? In April 2024, 20% of title companies experienced attempts at seller impersonation fraud.

People who invest, buy, or sell real estate should be cautious and consult a reliable real estate investment fraud lawyer to make sure that they are protecting themselves against scams. These lawyers can check property titles and make sure that all legal requirements are met.

When purchasing or selling real estate, it’s important to recognize certain warning signs. We have listed them down below:

Unusually Low Property Prices

If a seller sells a property at an unusually low price, that in itself should raise some suspicion and require more investigation. Such prices often imply some problem or manipulation. Check the area; a low property price may be due to the neighborhood’s decline and the reduced demand for real estate.

It is also important to check if the property has all the documents that show ownership, because occasionally a low price indicates issues with property titles.

According to real estate transactions lawyer Tim R. Plewe, one of the most common issues that people run into with real estate transactions is related to deed or title transfers.

Investigate all reasons contributing to the low pricing and ask questions about why the pricing is lower than other comparable properties in the area.

Buying a cheap property could turn into a regrettable investment if you rush into them without fully understanding the circumstances.

Poor Property Condition

The condition of a property can often indicate potential red flags in a real estate transaction. Peeling paint, cracked foundations, and water stains are issues that require thorough investigation. 

These individuals identify issues that could potentially lead to significant costs for you. Never ignore signs of distress like broken fences, an overgrown yard, or loose knobs. These often indicate the lack of maintenance.

Trust your intuition; if something feels off, it probably is. A home inspector might step in to bring out those real defects that you cannot detect yourself.

Incomplete or Inaccurate Disclosures

Whenever sellers provide incomplete disclosures regarding matters affecting the property, it results in significantly less risk for the seller and considerably more risk for the buyer. The damages could be more severe, and the sale may be involved in a complicated legal proceeding.

Always read through the seller’s disclosures and ask plenty of questions when matters seem suspicious. Vague disclosures or the absence of crucial facts are significant warning signs. You may be unknowingly taking risks that could cost you. 

High Seller Motivation

High seller motivation can raise concerns during a real estate closing, particularly when the motivation behind it is unclear. Anything different from a sale closed off the record of time or at a considerably lower price raises questions about why the sellers feel rushed.

Maybe they’d foreclose on their mortgage or have a job to relocate to another state? Occasionally, there may be problems brewing in the background with the property. You will have to dig to find these sinister but not-so-obvious issues.

Always do thorough due diligence and possibly align with a third party, like someone who can appraise seller motivation. Be vigilant and willing to dig deeper to protect your investment. 

Unresponsive or Evasive Agents

Be wary of transacting with unresponsive or evasive agents. You want someone who is communicating clearly, promptly, and consistently. Waiting days for a response or dodging direct questions could signal a lack of transparency or professionalism.

You should have an agent who is proactive and truly prioritizes your best interests. Do not hesitate to seek a second opinion if your agent does not live up to the standards you expect. 

Remember, a good agent should represent your interests and lead you through the process, not be another distraction. Always do your research and consult professionals before finalizing the deal.