15 Scams in Real Estate to Alert Your Clients to in 2025
Real estate scams are growing more sophisticated each year, putting buyers, sellers, renters, and investors at risk. As a real estate professional, it’s critical to educate your clients about the latest fraud tactics so they can protect their money, property, and peace of mind. Here are 15 real estate scams to watch out for in 2025, based on current trends and expert warnings.
1. Wire Transfer Fraud
Scammers impersonate agents, title companies, or lenders and send fake wire instructions, tricking clients into sending closing funds to fraudulent accounts. These scams often go undetected until closing day, and lost funds are rarely recovered.
2. Rental Scams
Fraudsters post fake rental listings using stolen photos and information. They collect deposits or rent from unsuspecting tenants for properties they don’t own or that don’t exist.
3. The Cheque-Switch Scam
A scammer sends a check for more than the required amount, then asks for a refund of the excess. The original check later bounces, and the victim loses the “refund” they sent.
4. Moving Scams
Rogue moving companies give low-ball estimates, then demand much higher payments after loading belongings, holding possessions hostage until clients pay up.
5. Fake Listings and Seller Impersonation
Scammers create fake property listings or pose as legitimate sellers, often using publicly available information. They may try to collect deposits or personal information from interested buyers.
6. Foreclosure Relief and Foreclosure Fraud
Fraudsters prey on distressed homeowners, offering fake foreclosure relief or loan modifications for upfront fees, but provide no real help—sometimes even stealing the home.
7. Loan Flipping
Predatory lenders encourage repeated refinancing, trapping homeowners in cycles of debt and higher payments, often targeting seniors or financially vulnerable clients.
8. Deed or Title Fraud
Criminals steal personal information to forge signatures and transfer property ownership, sometimes taking out loans against the property or selling it without the owner’s knowledge.
9. Fake Agents and Lenders
Scammers use AI or stolen identities to pose as real estate agents or lenders, tricking clients into sharing sensitive information or transferring funds.
10. Foreign Buyer/Offer Scams
Fraudsters pose as overseas buyers, send fake checks, and then request refunds or personal information, leaving sellers out of pocket when the original check bounces.
11. Home Inspection Scams
Fake or unqualified inspectors rush through or skip critical parts of the inspection, hiding major issues and leaving buyers with costly surprises after closing.
12. Praying on Foreclosures
Scammers claim to represent government assistance or housing programs, charging fees for nonexistent help or stealing client information from vulnerable homeowners.
13. Real Estate Investment Education Scams
“Get-rich-quick” seminar scams promise insider secrets for a fee but deliver little or no valuable education, often upselling more expensive, worthless courses.
14. Messages from Fake Buyers
Unsolicited texts or emails from supposed investors or buyers are often phishing attempts to steal personal or financial information—or bait for other scams.
15. Mortgage Fraud
Fraudsters collect personal and mortgage data to impersonate homeowners, redirect payments, or take out loans in the victim’s name, leading to financial and legal headaches.
How to Protect Your Clients
- Always verify identities and credentials independently.
- Double-check wiring instructions by calling trusted contacts directly.
- Advise clients to visit properties in person and avoid sending money before confirming legitimacy.
- Encourage the use of title insurance and legal review for all transactions.
- Report suspicious activity to authorities promptly.
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Conclusion
Scams in real estate are evolving, but awareness and vigilance are the best defenses. By educating your clients about these 15 common scams, you help them make safer, smarter decisions—and protect their investments in 2025’s dynamic property market
FAQs: Real Estate Scams to Watch for in 2025
Q1: What are the warning signs of a real estate scam?
A: Warning signs include requests for upfront payments before seeing a property, deals that seem too good to be true, sellers or agents unwilling to verify their identity, inconsistent listing details across platforms, and pressure to act quickly or wire money without proper verification.
Q2: How can I verify if a property listing or agent is legitimate?
A: Always ask for and check the seller’s or agent’s credentials. Verify the RERA registration number (in India) or equivalent regulatory credentials in your country. Cross-check property details across multiple platforms and, if possible, visit the property in person before making any payments.
Q3: What should I do if I receive suspicious wire instructions or payment requests?
A: Never follow payment instructions received via email or text without confirming them directly with your agent, lender, or escrow officer using a trusted phone number. Wire fraud is a common and costly scam—always double-check before sending any money.
Q4: How can I protect myself from rental scams?
A: Avoid sending money before seeing the property in person or through a trusted representative. Research the ownership and rental company, and never pay via unsecured methods like wire transfers, gift cards, or cryptocurrency. Be wary of listings with unusually low prices or high-pressure tactics.
Q5: What legal protections or steps can help prevent real estate fraud?
A: Regularly monitor property records for unauthorized changes, consider purchasing title insurance, and familiarize yourself with local property laws. Know your rights as a buyer or seller, and consult a real estate attorney if you receive suspicious notices or encounter questionable transactions.