Real Estate Fraud Is Surging Across California

Sep 2

Lindsay Woolf and Josh Woolf are real estate professionals serving the South Bay and Los Angeles. With fraud reports increasing across California, we believe it is important for buyers, sellers, and homeowners to stay informed about common scams affecting real estate transactions. Recent alerts from the California Association of REALTORS® also known as C A R and the National Association of REALTORS® also known as N A R highlight several types of fraudulent activity consumers should be aware of.

Below is a general overview of these scams and steps you can consider when making real estate related decisions.

Deed and Title Fraud also known as Seller Impersonation Scams

Criminals have been impersonating property owners, including owners of vacant homes, rental properties, or properties owned free and clear, and attempting to transfer or sell the property without the true owner's knowledge. This type of activity has been referenced in recent C A R and N A R fraud advisories.

Red flags may include:
• A seller who refuses to meet in person or speak by phone
• Requests to use a specific notary
• Mismatched signatures or irregularities in documents
• Attempts to rush the transaction

Consumers can consider:
• Confirming seller identity through more than one source
• Requesting in person notarization when possible
• Working with a reputable title and escrow company
• Using county recording notification services

Wire Fraud During Escrow

Wire fraud continues to be one of the most frequently reported risks in real estate transactions. Criminals may attempt to intercept or alter wiring instructions sent by email.

Consumers can consider:
• Calling the escrow company using a verified phone number before wiring funds
• Verifying instructions through more than one method of communication
• Reviewing written wire fraud notices provided by escrow or title companies

Rental Fraud

Scammers may copy legitimate listing photos and create fake rental advertisements online, collecting deposits or fees and then disappearing.

Common signs may include:
• Rental prices that appear unusually low
• Requests for payment before viewing the property
• Claims that the owner is unavailable or out of the area

Loan, Credit, and Identity Fraud

Identity based fraud continues to rise and can affect individuals applying for mortgages, refinancing, or opening home equity lines of credit also known as HELOCs.

Consumers can consider:
• Placing a credit freeze with major credit bureaus
• Monitoring credit reports regularly
• Using multi factor authentication on financial accounts

Contractor and Home Repair Scams

These scams may target new homeowners or individuals seeking quick home repair solutions.

Consumers can consider:
• Hiring licensed and insured contractors
• Checking references and online reviews
• Avoiding large upfront payments
• Getting all agreements in writing

Josh and I maintain a list of vendors we have experience with and can share upon request. We recommend conducting your own research to ensure any vendor meets your individual needs.

Many California counties offer free services that notify property owners when a document is recorded against their property.

Live in LA county? Check out:
• Los Angeles County Recording Notification Service
This tool can help homeowners stay aware of activity related to their property.

As California real estate licensees, we follow all guidelines and professional standards set by C A R, N A R, and the California Department of Real Estate. Throughout a transaction, we stay in communication with escrow, title, and the relevant parties. We encourage our clients to reach out whenever they have questions or receive communication they are unsure about.

Best regards
Lindsay Woolf CA DRE 02236711
Josh Woolf CA DRE 02252408
Circa Properties CA DRE 02182130

Disclaimer: The information in this blog post is provided for general informational purposes only and does not constitute legal advice. Real estate transactions can vary based on individual circumstances and local regulations. For guidance related to your specific situation, please consult the appropriate licensed professional.

CA Real Estate