Tips to Prevent Real Estate Fraud

1.        Check with the Real Estate Division to ensure that the “agent” or “property manager” that you want to use is licensed by the Division.

2.      Do not sign any document with blanks, such as a purchase amount or termination date for a listing contract.

3.      Do not give personal information over the phone or to someone who does not need that information. Typically real estate licensees do not need your birthday and social security number. These should only be given to a lender and/or escrow officer.

4.      Do not pay for real estate services before they are completed. This is especially true for time share re-sales.

5.      Do not sign that you have done something that you have not done. This includes walk-through inspections and reading, understanding and accepting CIC governing documents.

6.      If something is agreed to as a part of a sale or purchase, it must be in writing signed by all parties. If you allow a buyer to move in before the close of escrow, there must be a rental agreement with rental amount, defined responsibilities for insurance, utilities, etc. and a statement as to what will happen should the transaction not close.

7.      Commission amounts are negotiable, not fixed by law.

8.      When listing your property for sale, get a suggested “listing price” from at least 3 agents and ask to see the comparable sales upon which they are basing their suggestion. The highest suggested listing price is not always the best. It may be too high for the market and just designed to “get the listing.”