Property Protection

Protecting Your Property: A Real Estate Scam Story and How to Safeguard Your Assets

Property fraud is a growing concern, especially for owners of vacant land or investment properties. Scammers are becoming increasingly sophisticated, making it crucial for property owners to stay vigilant. Here’s a real-life experience that underscores the importance of proactive measures.

A Cautionary Tale: The Tilton Road Scam

While working as a real estate professional, I was approached by an individual claiming to be “Susan,” the owner of two vacant lots on Tilton Road in Egg Harbor Township. She expressed interest in selling these properties and requested my assistance.

From the outset, several red flags emerged:

  • Unusual Communication: The emails were overly formal with grammatical errors, and the email address didn’t align with the claimed identity.
  • Distorted Voice Calls: Phone conversations featured a robotic-sounding voice, raising suspicions about the caller’s authenticity.
  • Questionable Documentation: Upon requesting identification, “Susan” provided a driver’s license that appeared legitimate at first glance. However, discrepancies arose when cross-referencing public records, revealing that the names on the deed didn’t match.

Further probing led “Susan” to claim her husband had passed away and promised to send a death certificate. After that, all communication ceased.

Fortunately, due diligence prevented this fraudulent transaction from proceeding. However, not all property owners are as fortunate.

Understanding the Scam

Here’s how such scams typically unfold:

  1. Targeting Vulnerable Properties: Scammers focus on vacant or investment properties, especially those owned by individuals residing out of state.
  2. Impersonation: They pose as the rightful owners, contacting real estate agents to list the property for sale.
  3. Pressure Tactics: The fraudsters push for quick, cash-only deals, aiming to close transactions before discrepancies are noticed.
  4. Fabricated Documents: They provide forged identification and documents to support their claims.

Industry Countermeasures

Recognizing the rise in such fraudulent activities, title companies and real estate professionals are implementing stricter protocols:

  • Enhanced Verification: Sellers are now required to provide two forms of identification.
  • Authorized Notaries: Out-of-state owners must use approved notaries vetted by the title company.
  • Video Verification: Some transactions now include video calls to confirm the seller’s identity.

These measures add layers of security, making it more challenging for scammers to succeed.

Proactive Steps for Property Owners

Beyond industry safeguards, property owners can take personal steps to protect their assets:

  • Stay Informed: Regularly review property records and be alert to any unexpected changes.
  • Sign Up for Alerts: Many counties offer free property fraud alert services that notify owners of any recorded activity related to their property.
  • Consult Professionals: Engage with trusted real estate professionals who can guide you through secure transactions.

County-Specific Fraud Alert Services

To assist property owners, here are links to property fraud alert services in various counties across New Jersey, Delaware, and Pennsylvania:

New Jersey

By enrolling in these services, property owners can receive timely notifications of any activity related to their property, allowing for swift action if unauthorized changes occur.

Final Thoughts

Property fraud is a serious threat, but with vigilance and the right tools, you can protect your valuable assets. Stay informed, utilize available resources, and don’t hesitate to consult with professionals when in doubt.

Stay safe and proactive in safeguarding your property.

God bless,
Matt
Your friend in the real estate business who can help the people you love.