Real Estate Journal Online

In Idaho, real estate agents are encountering a new type of scam perpetrated though websites like Zillow and Trulia[1]. In the scam, a real estate agent is contacted through the website instead of emailed directly, and the “buyer” expresses interest in working with a real estate professional in order to buy property. By making contact through an established site, the scammer is able to “steal” some credibility from the site and is more likely to elicit a response. A name and phone number is provided. In the instances described by one agent, the number leads to a recording in English and French that does not appear to be monitored. In many cases after calling the number, the agent also responds by email, at which point they receive a response that indicates that the prospect wants to buy a property and are asked to handle the transaction and locate an attorney to handle the cash. Once a property is selected, the “buyer” is unable to attend the closing but sends checks for earnest money. Once the earnest money is deposited, the buyer cancels the contract upon inspection and demands return of earnest money. This process is conducted so swiftly that often the checks have not actually cleared (and bounced) at the foreign bank of origin, and an unsuspecting agent may return the money to the buyer using a good check and essentially allowing them to walk off with a large sum of “earnest money” that was never any good in the first place.

This scam presents a problem not just for agents but possibly for FSBO sellers as well. Have you encountered this scheme?

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