Real Estate Scams Are Getting Smarter: How to Protect Your Money and Property

Buying or selling a home is one of the biggest financial decisions you’ll make. With large sums of money, personal information, and important documents involved, real estate transactions can also become targets for scammers.

Here in Northeast Tennessee, real estate often feels personal. You may know your neighborhood, work with familiar local professionals, or trust the people helping you through the process. But as more transactions happen digitally, criminals are finding new ways to impersonate trusted contacts and take advantage of buyers, sellers, and homeowners.

The good news? A few extra minutes of caution can help protect your money, identity, and property.

1. Verify Before Sending Money

One of the biggest risks in a real estate transaction is wire fraud. Scammers may send fake emails or text messages that appear to come from your real estate agent, lender, title company, or attorney. These messages may include fraudulent wiring instructions or claim that payment details have changed.

Even if a message looks legitimate, don't assume it's safe.

Before sending money or changing payment instructions, independently contact the professional involved using a phone number you already know is correct. Never rely solely on the contact information provided in a suspicious or unexpected message.

Be especially careful with last-minute requests involving money, passwords, Social Security numbers, or other sensitive financial information.

2. Watch for Suspicious Property Listings

Real estate fraud doesn't always happen during closing. Scammers may also advertise properties for sale or rent that they don't actually own or have permission to represent.

Be cautious if someone claims to own a property but wants to handle everything online, pressures you to act immediately, or asks for money before you've independently verified the listing and ownership information.

If something feels unusual, take time to investigate. A trusted real estate professional can help you review available property information and identify inconsistencies that deserve a closer look.

Don't let the fear of losing an opportunity rush you into sending money or sharing personal information.

3. Protect Your Property Records

You don't have to be buying or selling a home to be affected by real estate fraud.

Title and deed fraud can involve forged documents intended to transfer ownership interests in someone else's property. Homeowners should stay aware of their property records, even when no transaction is planned.

One practical step is to periodically check your county property records. You can also contact your local Register of Deeds to ask whether your county offers alerts when documents are recorded involving your property. According to the Northeast Tennessee Association of REALTORS® (NETAR), free email alerts for document filings are available in most Tennessee counties.

Taking a few minutes to learn what's available in your county can add another layer of awareness.

4. Be Careful With “Too Good to Miss” Investments

Real estate investment opportunities can sound exciting, but high-pressure sales tactics should raise concerns.

If someone promises an exclusive deal that will disappear unless you send money immediately, pause before committing. Urgency is not a substitute for research, and a legitimate opportunity should allow time for appropriate due diligence.

Before investing, discuss the opportunity with trusted financial, legal, and real estate professionals. Make sure you understand the details before putting your money at risk.

5. Know What to Do if You Suspect Fraud

If you believe you've sent money to a scammer, act immediately. Don't wait to see whether the situation resolves itself.

NETAR advises consumers to contact their financial institution and law enforcement as quickly as possible. You should also report suspected internet-related fraud to the FBI's Internet Crime Complaint Center (IC3).

The first 24 to 48 hours may be critical when trying to respond to a fraudulent payment. Acting quickly gives your financial institution and the appropriate authorities an opportunity to respond.

Remember: Stop, Verify, Then Act

Technology makes buying and selling real estate more convenient, but convenience should never replace caution.

Whether you're purchasing your first home, selling a longtime family property, buying land, or simply protecting the home you already own, take a moment to question unexpected requests and verify important information through trusted channels.

If a message seems unusual, a property listing raises questions, or an investment opportunity comes with pressure to act immediately, it's okay to stop and ask questions. A phone call or additional check could help protect the savings and equity you've worked hard to build.

Stop. Verify. Then act. Those three simple steps can make a meaningful difference.

This article is based on guidance from the Northeast Tennessee Association of REALTORS® (NETAR). It provides general consumer information, not legal advice. Consult a Tennessee-licensed attorney for legal questions.