Greg's Corner

Even with agents, property buyers can still be scammed

By Greg Collier

A Durham, North Carolina man loved his home and loved the trees that loomed over his backyard. He wanted to keep the trees standing, but he didn’t own the property the trees stood on. He always thought that if that property became available, he would love to buy it. Recently, the man received a text from a neighbor of his who saw that the property was being listed for sale. The man contacted his real estate agent to help with the purchasing process.

The man’s real estate agent dealt with the property’s listing agent, which was in nearby Chapel Hill. The listing agent instructed the man to wire $10,000 to the owner of the property, who just happened to be in Vietnam. The Durham man even questioned the method of payment, but was assured by the listing agent that this was appropriate. They closed on the property after another $20,000 was wired overseas. The closing document stated that the owner was now in South Africa.

About a month after the deal closed, the man received a phone call from his agent telling him that the deal was a fraud. The people the listing agent were dealing with were not the owners of the property, but scammers. The man’s agent informed him that he would be getting his money back, but only received $19,000. The listing agent ended up paying the remainder back to the man out of their own expenses.

Even professionals can be taken in by scammers. In this case, the listing agent did not verify if they were talking to the actual owners of the property. That’s not to say there weren’t red flags. Anytime when dealing with real estate, and you’re asked to wire money overseas, it’s time to step back and assess the situation. In this instance, the agent’s insurance was able to cover the man’s loss, but in most situations that money would be gone forever.

When buying a property, insist on going through the traditional closing methods if you’re asked to wire money. If the sellers refuse, there’s a good chance you’re dealing with a scammer.