Common Real Estate Scams — and How Pennsylvania Professionals Can Avoid Them
Real estate transactions involve large sums of money, tight timelines, and multiple parties communicating electronically. These conditions make them attractive targets for fraudsters. While scams continue to evolve, several schemes appear repeatedly in Pennsylvania transactions. Awareness and process discipline remain the best defenses.
Wire Fraud / Business Email Compromise
The scam: Hackers gain access to (or spoof) an email account belonging to an agent, lender, or title company and send “updated” wiring instructions shortly before settlement. Funds are wired to a fraudulent account and often unrecoverable.
Avoidance strategies: Never rely solely on email for wiring instructions. Adopt a firm policy requiring verbal verification using a known, previously verified phone number. Encourage clients to confirm wiring details directly with the title company and warn them early in the transaction that wiring instructions rarely change.
Seller Impersonation Fraud
The scam: A fraudster poses as the property owner, often targeting vacant land, inherited property, or rental homes, and lists the property for sale. The real owner is unaware until after a contract is signed or funds are transferred.
Avoidance strategies: Be cautious with sellers who are remote, refuse video calls, or pressure for quick closings. Verify ownership through recorded deeds, confirm identification carefully, and be skeptical of requests to direct proceeds to third parties or foreign accounts.
Forged or Altered Deeds
The scam: Criminals record fraudulent deeds transferring ownership without the true owner’s knowledge, then attempt to sell or mortgage the property.
Avoidance strategies: Encourage clients, especially owners of vacant or investment properties, to monitor county land records regularly. Prompt review of recorded documents can allow faster corrective action before additional transactions occur.
Fake or “Clone” Listings
The scam: Scammers copy legitimate listings and repost them at below-market prices to collect application fees, deposits, or personal information from unsuspecting buyers or tenants.
Avoidance strategies: Advise consumers to verify listings directly through licensed agents or known brokerages. Red flags include unusually low prices, refusal to show the property in person, and requests for payment before a tour.
Rental Deposit Scams
The scam: A fraudster claims to be the landlord of a property they do not own and demands deposits or rent upfront, often using urgency or emotional appeals.
Avoidance strategies: Confirm ownership before accepting or transmitting funds. Counsel tenants never to wire or gift funds, and to insist on seeing executed leases tied to verified owners.
Contractor and Repair Scams
The scam: After settlement, new owners are approached by contractors claiming to have been “working with the seller” or offering urgent repairs, often requesting large upfront payments and disappearing.
Avoidance strategies: Recommend licensed, insured contractors and caution buyers against unsolicited offers. Payment schedules tied to completed work reduce risk.
Final Thoughts
Scams succeed not because professionals are careless, but because fraudsters exploit trust, urgency, and technology. Clear office protocols, client education, and healthy skepticism are essential. By setting expectations early and slowing down when something feels “off,” real estate professionals can significantly reduce the risk of fraud for themselves and their clients.
