Trust Us To Be Your Voice

Minimizing fraud during a real estate transaction

On Behalf of | May 13, 2019 | Residential Real Estate

A lack of security measures could result in fraudulent real estate transactions in Delaware or any other state. In many cases, a scammer will learn about a transaction after hacking an email account or by otherwise obtaining unauthorized access to an online account. They will then pretend to be an attorney or other party relevant to the purchase or sale of the property. The final step in the process is to instruct a person to send closing costs or other payments to a fraudulent account.

There are ways for buyers and sellers to avoid scams. For instance, it is important to insist that everyone involved in the transaction have secure passwords and use two-step authentication. Individuals can also protect themselves by making sure to call anyone who has supposedly asked for a payment to be wired.

This gives a person the ability to verify that such a request has been made. If a buyer or seller is asked to rush a wire transfer, it could be a red flag that the request is fraudulent in nature. Finally, it is always a good idea to look for changes in wiring instructions or changes in email addresses. In most cases, wiring instructions will not change during the course of closing on a transaction.

Ideally, the real estate closing process will be handled by an attorney whom a buyer or seller trusts. An attorney may be able to answer questions or otherwise ensure that a party to a real estate transaction understands what is happening and why. An individual may want to ask about the steps that all parties are taking to prevent fraud from derailing a transaction. Parties to a home sale should report suspected fraud to their legal representatives.