10 Common Real Estate Scams and How to Avoid Them

10 Common Real Estate Scams and How to Avoid Them

10 Common Real Estate Scams and How to Avoid Them

As a real estate expert, I’ve seen my fair share of scams in the industry. In this article, I’ll share with you 10 common real estate scams and how to avoid them. From rental scams to title fraud, these scams can cause significant financial loss and emotional distress. So, let’s dive in and learn how to protect ourselves from these unscrupulous schemes.

1. Rental Scams

Rental scams are one of the most common real estate scams out there. Scammers often pose as landlords or property managers, advertising properties that they don’t own or have no authority to rent. They’ll ask for a security deposit or rent payment upfront, and once they receive the money, they disappear.

  • Always verify the identity of the landlord or property manager.
  • Never send money without seeing the property in person.
  • Be cautious of deals that seem too good to be true.

2. Escrow Wire Fraud

Escrow wire fraud occurs when scammers pose as a title company or real estate agent and send fake wiring instructions to homebuyers. Once the money is wired, it’s nearly impossible to recover.

  • Always confirm wiring instructions with your title company or real estate agent over the phone.
  • Be cautious of any last-minute changes to wiring instructions.
  • Never click on links in emails that seem suspicious.

3. Title Fraud

Title fraud is when a scammer forges documents to make it appear as if they own a property, then sells or refinances the property without the true owner’s knowledge. This can leave the real owner with a mortgage they didn’t take out or a property they no longer own.

  • Regularly check your property records for any suspicious activity.
  • Consider investing in title insurance to protect against title fraud.
  • Be cautious of unsolicited offers to buy or refinance your property.

4. Loan Modification Scams

Loan modification scams prey on homeowners struggling to make their mortgage payments. Scammers promise to negotiate with the lender to lower the homeowner’s monthly payments, but instead, they take the homeowner’s money and do nothing to help.

  • Only work with reputable loan modification companies or HUD-approved housing counselors.
  • Never pay upfront fees for loan modification services.
  • Be cautious of guarantees to stop foreclosure or lower your payments.

5. Home Improvement Scams

Home improvement scams involve contractors who take payment for work they never complete or do a poor job. They often target vulnerable homeowners, such as the elderly or those in financial distress.

  • Always research contractors and check their references before hiring.
  • Never pay the full amount upfront – instead, use a payment schedule tied to project milestones.
  • Get multiple quotes and compare prices before committing to a contractor.

6. Property Investment Seminars

Property investment seminars promise to teach attendees how to make a fortune in real estate, but often, they’re just high-pressure sales pitches for expensive courses or mentoring programs. Many attendees end up losing money instead of making it.

  • Research the seminar organizers and their track record before attending.
  • Be cautious of high-pressure sales tactics and unrealistic promises of wealth.
  • Seek out free or low-cost educational resources on real estate investing.

7. Fake Real Estate Lawyers

Scammers posing as real estate lawyers offer to help with property transactions, only to steal sensitive information or money from their victims. They may also provide incorrect legal advice, leading to costly mistakes.

  • Verify the credentials of any real estate lawyer you work with.
  • Ask for referrals from friends, family, or your real estate agent.
  • Be cautious of unsolicited offers for legal help.

8. Timeshare Scams

Timeshare scams involve high-pressure sales tactics to sell overpriced or nonexistent timeshares. Scammers may also offer to help timeshare owners sell their units, only to charge upfront fees and never deliver on their promises.

  • Research the timeshare company and its track record before buying.
  • Never pay upfront fees to sell your timeshare.
  • Be cautious of high-pressure sales presentations and too-good-to-be-true offers.

9. Foreclosure Rescue Scams

Foreclosure rescue scams target homeowners facing foreclosure, promising to save their homes in exchange for upfront fees. Instead of helping, these scammers often take the homeowner’s money and do nothing to stop the foreclosure process.

  • Seek help from a HUD-approved housing counselor or reputable attorney.
  • Never pay upfront fees for foreclosure rescue services.
  • Be cautious of guarantees to stop foreclosure or save your home.

10. Dual Agency Scams

Dual agency scams occur when a real estate agent represents both the buyer and seller in a transaction, creating a conflict of interest. The agent may not have the best interests of both parties in mind and may prioritize their own commission over a fair deal.

  • Always work with a dedicated buyer’s or seller’s agent.
  • Be cautious of agents who push for dual agency arrangements.
  • Ensure your agent is transparent about their role and responsibilities in the transaction.


Q: How can I protect myself from real estate scams?

A: Always do your research, verify the credentials of professionals you work with, and be cautious of deals that seem too good to be true. Trust your instincts and seek help from reputable sources if something feels off.

Q: What should I do if I think I’ve been scammed?

A: Report the scam to your local law enforcement, the Federal Trade Commission, and your state attorney general’s office. You may also want to consult with an attorney to explore your legal options.

Q: Can I recover my money if I’ve been scammed?

A: It can be difficult to recover money lost in a scam, but reporting the incident and working with law enforcement may increase your chances of getting some or all of your money back.


In conclusion, real estate scams can be financially and emotionally devastating, but by being aware of these common schemes and taking steps to protect yourself, you can minimize your risk. Always do your research, verify the credentials of professionals you work with, and trust your instincts. Remember, if a deal seems too good to be true, it probably is. Stay vigilant and stay safe in your real estate endeavors.

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.