"How Do I Protect Myself from Real Estate Fraud?" (Essential Guide for Homeowners & Investors)

Real estate fraud is any deceptive activity that results in someone illegally profiting from property ownership, transfers, or financing.

This can include forging documents to steal ownership, impersonating a seller to list and sell someone else’s property, or manipulating legal paperwork to secure fraudulent loans.

According to the FBI’s 2022 Internet Crime Report, losses from real estate and rental fraud exceeded $396 million, affecting thousands of homeowners, buyers, investors, and renters across the United States. (FBI IC3 Report)

Real estate fraud isn’t limited to large cities or luxury properties. Vacant lots, second homes, rental investments, and even primary residences are all at risk—often precisely because their owners assume they’re safe.

How do I protect myself from real estate fraud? Learn 5 essential steps homeowners and investors can take to prevent title theft, scams & deed fraud.

Types of Real Estate Fraud to Watch For

1. Seller Impersonation Fraud

One of the fastest-growing threats, this scam involves criminals posing as the property owner to sell or mortgage property they don’t own. They forge identification, hire unsuspecting real estate agents, and sometimes reach closing before discovery.

(American Land Title Association on Seller Impersonation)

2. Title or Deed Fraud

Here, scammers file forged documents with the county to transfer ownership of your property to themselves (or a fake entity). Once they’ve done that, they may try to sell it or take out loans using your property as collateral.

(Consumer Financial Protection Bureau: Protecting your home)

3. Mortgage Fraud & Foreclosure Rescue Scams

Fraudsters promise to "save" homeowners from foreclosure but instead trick them into signing documents that transfer ownership. In other cases, fraudulent applications inflate income or asset values to secure loans that inevitably fail.

(Fannie Mae: Mortgage Fraud Awareness)

How Do I Protect Myself from Real Estate Fraud?

There are several proactive steps homeowners and investors can take:

1. Check Your Property Records Regularly

Visit your local county recorder or register of deeds website. Look for any new filings related to your property that you don’t recognize. Many counties offer free or low-cost alerts if a document is recorded against your property.

Example: Wake County Register of Deeds Notification Service

2. Be Careful with Personal Information

Never provide sensitive property or identification documents to unknown parties. Scammers may use even partial data to build convincing fake IDs.

3. Verify Professionals You Work With

Always confirm the credentials of real estate agents, title companies, and attorneys. Check licensing boards and look for established reputations. The National Association of Realtors and state bar associations are good starting points.

4. Secure Your Mail & Online Accounts

Stolen mail is a common first step in identity theft. Shred documents, use secure mailboxes, and enable two-factor authentication on accounts tied to your property (like online mortgage portals).

5. Consider Proactive Monitoring Tools

While county notice systems alert you after a deed is recorded, some owners opt for additional tools to monitor MLS listings or online real estate platforms, catching fraudulent listings before they escalate. This is especially useful for vacant land or properties you don’t check frequently.

Sources for Further Reading

FBI Internet Crime Center (IC3) - Annual Reports

American Land Title Association - Fraud Prevention Resources

Consumer Financial Protection Bureau - Protect Your Home

HUD - Avoid Foreclosure Scams

Questions & Answers

Q: How common is real estate fraud?

A: It’s growing rapidly. In 2022, the FBI reported nearly 12,000 victims of real estate and rental scams, with total losses close to $400 million.

Q: Does title insurance protect me from fraud?

A: Title insurance protects against existing defects at closing. It often helps you recover losses if fraud is discovered later, but it doesn’t proactively monitor for scams.

Q: What’s the most important first step I can take?

A: Start by checking your property records at your county office and sign up for their notification system if available. It’s free and helps you catch suspicious filings.

Q: Should I be worried if I’m not selling my home?

A: Absolutely. Many scams specifically target owners not selling—because they’re less likely to notice fraudulent activity until it’s advanced.