Quick Answer
Real Estate fraud can include real estate listings that are deceptive property ads posted by fraudsters pretending to sell or rent homes, apartments, or land they do not control. Scammers often copy real listings, offer below-market price, and pressure victims to send deposits or personal information — leading to financial loss and identity risk before the fraud is noticed.
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Just imagine this unfortunate but true nightmare scenario: a man in Charlotte, NC, had his $300,000 home sold out from underneath him for a mere $9,000 when perpetrators forged his name on a quit claim deed. The shocked homeowner only became aware of the situation when the ‘new’ owners came to his house and changed the locks!
Fraudulent listings for sale or rent play an active role in housing fraud. DomiDocs HomeLock™ proactively protects properties from deceitful activity by utilizing the most comprehensive security and monitoring technology available today by seeking out third-party listing sites and checking official records to alert you before any damage can be done.
What is Real Estate Fraud?
Fake real estate listings are a widespread type of property fraud in which scammers post bogus sale or rental ads to trick buyers or renters into sending money or personal information. According to the Federal Trade Commission (FTC), nearly 65,000 rental scams have been reported since 2020, with about $65 million in losses, and many originate from fake listings on classified and social platforms.
Scammers often create listings that appear legitimate by copying photos and descriptions from real properties and posting them with their own contact information. The FTC notes that many scam listings promise low rates, rush victims to make payments without seeing the property, and vanish once the money is sent.
These fake listings aren’t limited to rentals. Fraudsters can also advertise nonexistent homes or land for sale, siphoning significant funds from unsuspecting buyers before the error is caught. Verifying agents, addresses, and official ownership records is key to avoiding these common scams.
Why Anyone Can Be Targeted by Fake Real Estate Listings
Documented police cases of housing fraud in North Carolina alone range from the example above to a multi-million dollar mansion in nearby lakeside Davidson. In these cases, criminals simply forged deed signatures at the courthouse giving them complete access and ownership of the properties. It’s then up to the no doubt frustrated and angry homeowners to try and prove they are the legitimate owners!
Fraudulent Ads
Fraudulent listings seem to regularly appear on Craigslist and other similar sites where a scam artist hijacks a listing for an already advertised home for sale or rent. They scrape the ad using the same photos, sometimes adding elaborate stories, while offering the property up at a seemingly unbelievable low price. This can obviously trigger an incredible amount of interest from potential buyers and renters, while the crook simply waits to collect money through damage deposits and rent for a property they’re not even legally associated with. Homeowners and potential residents are left in confusion and with lighter pockets.
Vacation Homes
The use of fake ads is an especially prevalent scam targeting empty vacation homes as homeowners may only visit their property a few times a year so they don’t know it’s being occupied by someone else in their absence. This is a good time to ask your neighbors to alert you to any unusual activity near your vacation home. Again, it could cost thousands of dollars if not more to prove you’re the rightful homeowner instead of an unethical crook.
Phantom Rentals
According to the Consumer Information division of the Federal Trade Commission, there are also rental listings for homes that don’t even exist or are not for rent. Many times they’ll offer great locations, amenities, and/or inexplicably low rental prices. The goal of the scammer is to get someone excited about the property and to take their money before they figure out the listing isn’t real. And yes, this could even apply to the current home you’re living in now.
Are You Selling Your Home?
Another version of fraudulent listings can occur when you’ve listed your home for sale with a realtor or entrusted your property to be managed by a 3rd party. Your home is now an easy target because the listing contains everything an unsavory criminal needs to know to then advertise your home as a rental property with the goal of stealing deposits/rental money from unsuspecting renters. Some tricksters will even go as far as to put ‘for rent’ signs on the front lawns of properties that are actually for sale, and if questioned, they’ll respond that the real estate company is no longer representing the owner and the sign is yet to be removed.
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FAQ
What Are Fake Real Estate Listings?
Fake real estate listings are fraudulent property ads made by scammers to deceive buyers or renters into believing a property is legitimately available for sale or rent when it is not. They often use stolen photos and contact information to appear authentic.
How Do Fraudulent Listings for Sale or Rent Work?
Scammers copy real property photos or make up entire listings, then post them on classified sites or social platforms with their own contact info. They lure victims with low prices or urgency, ask for deposits or personal details upfront, and then disappear.
What Are Common Red Flags of Dummy Listings?
Red flags include prices far below market, refusal to show the property in person, requests for payment by wire transfer or gift cards, lack of professional agent contact, and pressure to act quickly before seeing the property.
Can Fake Listings Lead to Financial Loss?
Yes. Victims of fake rentals or sale listings commonly lose deposits, first month’s rent, or other upfront payments, and once money is sent and the scammer disappears, funds are often unrecoverable.
Where Do Most Fake Real Estate Listings Appear?
Many originate on social media and online marketplaces, including sites like Facebook, Craigslist, and other classified ad platforms — often exploiting their open posting systems to hide fraudulent ads.
How Can I Protect Myself From Fake Real Estate Listings?
Protect yourself by verifying ownership and listing legitimacy through official county and MLS records, dealing with licensed agents on trusted sites, and avoiding any transaction that demands money before you see the property. Services like HomeLock™ from DomiDocs® can also help monitor public property records and alert you to suspicious changes or unauthorized listings.