Protecting Yourself Against Real Estate Fraud: Tips from a Florida Title Expert

Introduction:

Real estate fraud is a growing concern in Florida, a state with a high volume of property transactions. Scammers target everything from high-value waterfront homes to smaller investment properties and vacant lots, using schemes like fake deeds, wire fraud, and impersonation to exploit buyers, sellers, and homeowners.

As a buyer, seller, or property owner, understanding how to detect and prevent fraud is crucial. Below are actionable tips from a Florida title expert to help you safeguard your investment.

1. Verify the Legitimacy of the Seller

Florida’s popularity among seasonal residents and absentee property owners creates opportunities for scammers to impersonate legitimate property owners, often targeting vacant or rental properties.

💡 What You Can Do:

• Check public records on your county’s Property Appraiser, Tax Collector, or Clerk of Court website to confirm ownership.

• Request two valid forms of photo identification and ensure it matches the name on the deed.

• Be wary of sellers pushing for quick cash sales or refusing to meet in person.

2. Beware of Fake Deeds

Fraudsters may forge or falsify deeds to transfer ownership of a property they don’t own. In Florida, this scam is particularly common in areas with a high volume of vacation homes, investment properties and vacant lots.

💡 What You Can Do:

• Work with a reputable Florida title company to conduct a detailed title search. This process uncovers irregularities, such as forged signatures or improperly recorded documents.

• Never sign or notarize documents without a thorough review by your title agent or attorney.

3. Look for Signs of Wire Fraud

Florida real estate transactions are a prime target for wire fraud, with hackers sending fraudulent emails to divert closing funds to their accounts.

💡 What You Can Do:

• Always verify wire instructions by calling your title company or attorney using a phone number you’ve independently verified—not one listed in the email.

• Be suspicious of last-minute changes to wire instructions. Legitimate title companies rarely alter wiring details without significant notice.

• Use secure platforms to exchange sensitive information, and avoid public Wi-Fi when handling financial transactions.

4. Protect Against Impersonation Scams

Scammers may pose as title agents, attorneys, or real estate professionals to gain access to sensitive information or funds. This can happen during email exchanges or even in person.

💡 What You Can Do:

• Confirm the identity and credentials of all parties involved in your transaction.

• Communicate only through verified email addresses or secure portals provided by your title company.

• Be cautious of unsolicited calls or emails requesting personal or financial information.

5. Monitor Property Records Regularly

Post-closing property fraud is a rising issue in Florida, especially in counties where fraudulent deeds can be filed electronically. Criminals may file fake deeds to transfer ownership without your knowledge.

💡 What You Can Do:

• Check your property records periodically through your county’s Clerk of Court or Property Appraiser’s office.

• Sign up for property fraud alerts if your county offers this service. Many Florida counties provide free alerts that notify you of any changes to your property’s records.

• Consider adding an affidavit of ownership to your property file as an extra precaution.

6. Invest in Title Insurance

Title insurance provides essential protection against real estate fraud, including hidden ownership disputes, forged documents, and unknown liens. In Florida, owner’s title insurance is optional but highly recommended.

💡 What You Can Do:

• When purchasing a property, ask your title agent to explain the coverage options for an owner’s title insurance policy.

• Ensure your policy includes protection against fraud, as well as coverage for any undisclosed claims that may arise after closing.

7. Work with Trusted Professionals

The best defense against real estate fraud is partnering with experienced and trustworthy professionals. In Florida’s dynamic real estate market, working with a reputable title company and knowledgeable real estate agent is essential.

💡 What You Can Do:

• Research and vet your title company, real estate agent, and attorney. Look for verified credentials, reviews, and referrals.

• Choose a Florida-based title company with a proven track record and expertise in navigating local real estate regulations.

• Avoid professionals who pressure you into quick decisions or fail to provide clear communication about the transaction.

8. Educate Yourself About Florida-Specific Scams

Florida has unique fraud risks due to its diverse real estate market and high number of absentee owners. Common scams include:

• Vacant Land Fraud: Scammers sell vacant lots they don’t own, targeting properties in undeveloped areas.

• Foreclosure Rescue Scams: Fraudsters prey on homeowners in financial distress, offering fraudulent “assistance” that results in losing ownership.

💡 What You Can Do:

• Stay informed about common scams by visiting resources like the Florida Attorney General’s website.

• Be skeptical of offers that seem too good to be true, especially for distressed properties or vacant lots.

Conclusion:

Real estate fraud is a significant threat in Florida, but by taking proactive steps, you can protect yourself and your property. From verifying ownership to securing title insurance, each precautionary measure reduces the risk of becoming a victim.

At Sunray Title, we prioritize your security and peace of mind. Our expertise in Florida’s real estate market ensures that your transaction is handled with the highest level of care and attention. Contact us today to learn how we can help protect your property and investment from fraud.