Sending Purchase Funds to the Title Company

Not all money transfers are created equal. Both wire and Automated Clearing House (ACH) transfers are ways to electronically move money from one bank account to another. They may seem alike, but they are not.

These methods of sending funds are referred to as an EFT or electronic funds transfer.  EFT is an umbrella expression that includes various types of financial transactions. EFT payments include wire transfers, ACH transfers, e-checks, ATMs, Point of Sale transactions, and more.

Understanding the differences between these is crucial when sending money to a title company.

Wire Transfer

Wire transfers are electronic payments used to send funds directly from one entity’s bank account to another’s. With wire payments, funds are instantly accessible when they arrive in the payee’s bank account and the recipient can access the funds without delay.

Wires are often used for large transactions when reliability and speed are critical factors. Because of the speed, once funds have been wired, reversing the transfer is difficult if not impossible.

Wire transfers can include a cost to both the sender and the recipient. Wire transfer fees are set by each financial institution and range from $10 to $100 to send or receive a wire transfer.

Title companies warn clients that wire transmissions are often the target of scams. It is essential to confirm the person and account that the funds are being sent to prior to initiating a wire transfer. Wire instructions will always include the bank routing number, account number, and name of the party receiving the money.

Wire transfers are preferred by title companies for security and dependability. They are much better than cashier’s checks, which can take longer to process and have become easy to counterfeit.

ACH Transfer

An Automated Clearinghouse transfer, or ACH, also moves money electronically. This is similar to sending a check and is becoming more common as a means to replace paper checks. ACH transfers may be the system used if you have automated bill payments, direct payroll deposits, or make direct person-to-person payments through PayPal, Venmo, or another system.

ACH payments are typically best for frequent or recurring transactions where the amount is smaller. Consumers like them for recurring payments for utilities, loans, etc., and for payments for services like Uber. Both large and small businesses like ACH as an e-payment method in this digital economy. Money can be both sent and received with ACH transfers.

The lower cost makes an ACH an appealing option for most consumers. Most ACH transfers are free for the sender or cost just a few dollars. While ACH payments are less expensive, wire transfers are faster. 

The ACH network electronically processes transfers in large batches or groups to an automated clearinghouse, which sends them onto a bank. These can take a few hours or several days to complete and clear. The process is too slow for funding real estate transactions where time is of the essence. With a real estate sale, the closing is not complete and the property does not change ownership until all funds are confirmed and processed by the title company. ACH payments do not meet the definition of “good funds” per the Texas Insurance Code, Title XI, Section 2651.202. Sending the title company an ACH transfer for closing is a recipe for delays.

In addition to the time factor, title agents are averse to ACH transfers because they may be reversed. The criteria for stopping an ACH transfer is determined by each bank. 

When purchasing a property, always confirm that funds sent to the title company are via a confirmed wire transfer and not an ACH transfer. If your Bank of America rep tells you they are the same thing, they are wrong. Follow the title company instructions and remember that the task of getting good funds to the title company on time is the responsibility of the buyer.

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Real Estate & Money Laundering

Criminal activity in both residential and commercial real estate is going strong. The U.S. has become a “safe haven” for money laundering with real estate investments leading the way. 

The figures are “staggering” according to a recent report from Global Financial Integrity (GFI), a Washington-based research institute that studies the movement of illicit finances. They report that billions of dollars were laundered through U.S. real estate between 2015 and 2020.

Drug dealers, arms traders, terrorists, and other criminals typically acquire these funds from illegal activities and seek to hide their source. These are not small-time crooks. Some are anonymous shell companies or complexly structured corporations.

Most cases concerning real estate and money laundering involve money from abroad. Some come from political figures who have “plundered, looted, and laundered the assets of their home countries,” according to the GFI report. The report cites cases of millions laundered by investors from Russia, the Ukraine, Venezuela, and Equatorial Guinea. In one example, a Beverly Hills property was purchased with $100 million embezzled from Kuwait’s Department of Defense. 

The GFI report states that real estate money laundering problems expand outside of luxury markets and big cities. They also occur in remote towns, suburbs, and rural areas. Residential properties are popular with money launderers, but commercial properties are an easy target as well. Income-producing commercial properties often carry a higher value and include hotels, offices, condominium developments, and retail centers.  

An assortment of professionals such as attorneys, real estate agents, and title agents assist these criminals “either through willful blindness or direct complicity” reports the GFI. Monitoring and enforcement of this type of illegal activity “nose-dived” during the previous government’s administration.

The report reveals that the current U.S. approach to residential real estate money laundering — using geographic targeting of certain counties — is inadequate. Currently, commercial real estate is not subject to any federal disclosure requirements to discourage money laundering.

What are the Feds doing about it?

As a core national security issue, the current White House administration issued a National Security Study Memorandum earlier this year to counter these criminal efforts. The purpose is to make it more difficult for money launderers and criminals to conceal their activities.  Directed at criminal organizations and individuals, the aim is to bolster the government’s ability to combat corruption and to freeze and recover stolen assets. 

The Treasury Department is under pressure from the president to repeal the regulatory exemption for real estate agents, who are not required to identify their clients or to report suspicious activity at this time. The U.S. is the only major member of the G7 that does not require real estate professionals to adhere to money laundering rules.

The Justice Department will continue to review evidence of financial crimes and expects to increase both the number and scope of monitoring activities. These enforcement actions should put significant impediments on these financial criminals.

What are title companies doing to help?

Title insurance companies are required to report suspicious activity, but the details for doing that are vague. In certain areas (including Dallas and Tarrant Counties), title companies must file reports to the Financial Crimes Enforcement Network (FinCEN). This organization is part of the U.S. Department of Treasury and aims at reducing criminal purchases.

Currently, title companies must identify and report persons purchasing residential properties over $300,000 with cash and under the name of a business, LLC, or other legal entity.

The Texas Department of Insurance prohibits title companies from accepting certain forms of payment for the purchase of real estate to help protect against crime and fraud. Funds must be delivered by wire transfer, cashier’s check, certified check, money order, or personal check.

All title companies are legally required to report any cash or personal checks for a purchase that total more than $10,000 to the IRS. This is designed to discourage money laundering, tax evasion, and other illegal activities. Seems like it hasn’t slowed down the big criminals.

Hopefully, change is on the way

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2021 Real Estate Scams & Fraud

Scams, fraud, breaches, and phishing are everyday concerns for today’s title companies. Financial and privacy threats continue to evolve in 2021 and increased with the pandemic. Not only do these cost the title company time and money, but they also create additional hurdles for buyers, sellers, brokers, agents, and lenders.

Texas and California lead the country in monetary losses reported to the FBI due to scams. Let’s take a look at some of the biggest threats we’re seeing right now and what you can do to protect yourself and your clients.

Data And Information Breach

A data breach can be where so many problems begin. This is when your private information is stolen. Make no mistake- this is a sophisticated multi-billion-dollar business run by smart professionals who are very good at what they do.

The criminals are not usually stealing this information from the title company. They’re getting it from individuals like you. This is typically a clever manipulation of the natural human tendency to trust. Once the criminal has your private information, they may hack into or monitor your computer to get your login and/or passwords to accounts. They may intercept emails and download viruses or ransomware.

Your phone and computer are the biggest risks for a breach. Do you have sensitive or irreplaceable information on your computer or phone? Most people do. Do you back them up regularly? Most people don’t. Most computer users do not have even basic cybersecurity. Scammers know this. You might as well be falling for the Prince of Nigeria scam.

A scammer can use your information to impersonate or manipulate you or your accounts. Their next step is to gain access to your information and/or computer, monitor your activity, and ultimately steal money. In a real estate transaction, they can attempt to divert buyer down payments, earnest money, mortgage payoffs, seller proceeds, etc.

Almost 97% of breaches start with emails. The most powerful way to avoid this is to be wary of every email you receive. Establish strong passwords and change them every three months. It doesn’t matter if you rotate using names of state capitals, vegetables, car models, months, … Just get a system of changing them that works for you. Only use secure Wi-Fi connections and avoid all free Wi-Fi connections in public locations for both your computer and your phone.

Wire Fraud

A 2021 survey by the American Land Title Association reports that one-third of all title company transactions have experienced a wire fraud attempt. Wire fraud is carried out by criminals who impersonate escrow officers, real estate agents, or lenders. They persuade home buyers to wire funds into their accounts during the closing process. These scams are very clever and are often carried out by criminal organizations with untraceable offshore accounts. The FBI estimates that only 12-15% of wire fraud is reported.

Wire transfer crooks hack legitimate emails or send buyer emails posing as someone involved in the transaction. They monitor a pending sale, and when the closing date nears, they send the buyer instructions to wire the closing funds to their fraudulent account. This scam is so lucrative that the fraudsters even set up fake websites that look similar to the title company or lender you’re working with, making them seem legitimate. They may create an email address that appear familiar, but one number or letter is off. It’s easy to miss the small inaccuracy or misspelling.

Always be suspicious of any email or text requesting a change to wiring instructions. Before sending money, go back to the original documents you received from your title company and call the phone number listed there to verify the wiring instructions.  Never click on links or send money without verifying wire instructions with a live person. Pick up the phone and only call the number that you first received from that contact (not the latest email).

Check Fraud

The frequency of fraudulent and counterfeit cashier’s checks is rising. A fake cashier’s check may clear immediately when first deposited. However, when the bank determines that the check is fraudulent, they take the money back.  This can happen days or weeks after the deposit.

Many title companies now treat a cashier’s check similarly to a personal check and require buyers to wire money to them if the amount is substantial.

… And More

There are a lot of real estate scams that we only hear about in title company offices. Rip-offs like roofer scams, fake rental house cons, moving company swindlers, etc. happen every day. The pandemic has led to a rise in cons like foreclosure relief scams that claim they can help homeowners save their homes and reduce their mortgage payments for an upfront fee. They sometimes claim to be affiliated with a government agency or housing assistance program. Remember, these guys are pros at ripping people off, and their methods keep getting more creative.

Unfortunately, buyers and sellers are the targets of scammers, and the losses they suffer keep mounting. In the end, only you can protect yourself.

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The Truth about Title Theft Protection

You may have seen the ads or heard the buzz about companies offering title monitoring services or “title theft protection.” Are they legitimate or just a scam? Is there any real value in these services?

First, let me clarify that “title coverage” offered by some of these unregulated companies is not title insurance. They do not actually protect you from fraud, title thieves, scammers, etc.  Their standard service does include taking any actions regarding the rightful ownership of your property.

What is Title Theft Protection?

Monitoring services like Secure Title Lock and Home Title Lock offer subscriptions that say they will alert you to court filings affecting your home’s title. For $100-150 a year, they will monitor court records to show title fraud or theft. The “protection” they offer is basically a notification that someone has changed the ownership or deed to your property.

“Title theft” is a fairly new term that has generated a handful of companies feeding on consumer fears. These companies suggest that criminals can “steal” your property by forging your name on a deed, then resell the property or take out a mortgage loan against it. They claim a title thief can stick you with a debt that isn’t yours.

That isn’t true. Though a title thief or forger could attempt to steal your home, the consequence is actually a lot of headaches and legal hassles for a property owner. Proving and dealing with fraud can be time consuming and expensive.  Title theft protection services are meant to be proactive in helping you shut down mortgage fraud.

The benefits of a title monitoring service are ambiguous. They are only designed to alert you to a change in your title. They don’t prevent the fraud and they don’t actually help you deal with it if it happens. A title theft monitoring service will not help to clear or correct a title. They have no legal obligation to assist the owner with a title theft and they don’t offer protection against financial losses. That’s what home title insurance is for.

What is Title Insurance?

Title Insurance protects the owner and their lender from the possibility of someone contesting their ownership of a property. When buying or refinancing a home, you need a title insurance policy if you are closing at a title company or getting a mortgage loan. The title insurance premium paid at closing protects you for the entire time you own the property.

Title insurance not only protects you from financial loss, it requires the title company to legally defend you if your ownership is ever challenged. However, it insures against issues on the title when you purchase the property. It doesn’t cover future criminal incidences.

How to Protect Your Home Title

You don’t need to pay a company to protect you from thieves putting their names on your home title. You can easily monitor your title yourself for free. Just go to your county’s tax web site and periodically check your property record. Ensure that it shows your correct name and address. 

If you discover that your property ownership has been fraudulently changed, contact an attorney. The county clerk at the property recording office can also advise you on filing a notice affidavit with the county court.  [where: 75230]

Top 5 Scams aimed at Realtors

Buyers and sellers aren’t the only victims of real estate scams and crimes. Realtors are also a favorite target of crooks, criminals, and other shady types. 

Due to the nature of the real estate business, agents naturally come in contact and work with strangers on a regular basis. Most real estate deals involve big ticket transactions and that adds to the risk of dealing with unfamiliar people.

In the last couple of weeks, I’ve highlights a few scams aimed at buyers and sellers. Realtors often get caught in the web of these deceptions as well. They just add to crimes that focus on these professionals.

After quizzing a few Realtors, here are just some of the scams going around lately:

1. Email hijacking and cyberfraud. Like everyone else with an email address, Realtors get phishing emails, fraudulent notices, and hacking attacks. But these are laced with real estate references and are designed to get data for identity theft or for financial information. They contribute to the cost of Errors & Omissions insurance premiums for agents. Often the scams appear to come from a mortgage company, title company, professional organization, etc.
2. Fake buyers. These devious phonies pretend to be in the market for a luxury home. They enjoy the charade of being fussed over and catered to. Dressing the part and asking detailed questions about the property, their deception can be quite believable – for a while. Fortunately, all they will likely rob you of is time – and maybe a couple of meals.
3. Open house thieves. These criminals target home sellers and Realtors. They pose as prospective buyers and may operate alone or in pairs. While they can be nicely dressed and well spoken. Plenty of agents have been robbed of money, jewelry, etc. while holding an open house.
4. The Friday night date. Another unrepresented ‘buyer’ works this con. He schedules an appointment during the week to see an expensive house and loves it. Now he wants to come back on Friday or Saturday in the early evening and bring his girlfriend or boyfriend. He confides that he could be the one and he wants his/her opinion on the house. He and his companion are warmly greeted by the agent, who shows them around. The ruse is simply to feed his ego, impress his date, and help him get laid.
5. Theft of furnishings and décor. Agents sometimes assist with selling a home by having it staged with model furniture and accessories. The crook views the home and manages to leave a door or window unlocked. The house is later cleaned out either by the crook or the person who bought the furnishings, not knowing they were duped as well.

Of course, the worst crimes aimed at Realtors have involved violence. Plenty of agents fear for their safety. Sadly, they may have good reason. Agents have been robbed, raped, and murdered all over the country. The National Association of Realtors 2018 Member Safety Report stated that 33% of Realtors said that in the previous year they had experienced a situation that made them fear for their personal safety or safety of their personal information. 

Knowledge is power and Realtor associations across North Texas hold regular classes on Realtor safety and fighting cybercrime. If you’re an agent, take a class or a refresher to remain vigilant.

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6 Popular Scams aimed at Homesellers

The internet can be both an ally and an adversary to today’s home seller. When it comes to scams and cons, homeowners are easy prey for professional criminals. 

Let’s face it. When selling real estate, you are inviting strangers into your home. Figuratively with online photos, maps, and more. And literally when they come to view your property. You and your home are exposed for the world to see.

Being aware of the scams aimed at sellers is the first step to stopping them in their tracks. These are some of the most popular swindles I’ve heard about in the past year:

1.       Hijacking your property and listing it for lease. This con has been around for years (because these conmen are so good). The scammer lists your property for lease on sites like Zillow, Trulia, Craigslist, etc. for an enticingly low monthly rent. They copy photos, description, etc. from legitimate real estate sites and often create an email address that includes the owner’s name (like JohnDoe1234@….com). They communicate with their victims via email and get them to pay an application fee or deposit to hold the property for them. They keep collecting until someone shuts them down – usually after one of the victims comes knocking at your door. It’s an ugly scene for everyone.

2.       Open house thieves. These crooks make their living stealing medications, jewelry, credit cards, and other valuables. Typically, they operate at open house events and pose as prospective buyers. They may operate alone or in pairs. While they can be nicely dressed and well spoken, they’ll take anything that can fit in a pocket or purse. Lock away everything you can, including all prescriptions.

3.       The amazing offer from the fake buyer. This guy doesn’t have an agent representing him and claims to be moving here from out of state. While his story may vary, it’s usually a good one. He needs a ‘long close’ because he’s going through a divorce, or waiting on an inheritance, or payment for his movie script, or some scenario. He’s willing to pay your asking price or more and close in a few months. He may want to lease the property for a huge monthly sum until he can close. Because he’s never going to close. His checks are going to bounce. He may even move into the property by the time you realize it. But essentially, he is going to tie up your property so that you can’t sell it to anyone else until you pay him to go away. 

4.       “I’ll buy it if I can’t sell it” ploy. This gimmick from smarmy agents comes with stipulations that most logical owners wouldn’t want. Usually, the agent will set the asking price and the offer to buy is way below market value.

5.       Knocking on your door. Yes, some of these criminals will actually knock on your door either trying to sell you something or to convince you they have reason to come inside. Just say no. They should have an appointment to view your home with an agent present and you should never buy anything from someone selling door to door (unless they’re school aged). Contact your agent to verify them before letting anyone in or giving them anything.

6.       For sale by owner targets. These cons are an entire category unto themselves. When there is no agent involved to monitor who sees the property, it’s anyone’s guess as to who they really are. Most sellers are hesitant to ask a prospective buyer for their identification. And they certainly don’t want to leave a stranger alone in their home. These ‘prospects’ could be thieves or just casing the house to come back and rob it later.

Licensed Realtors benefit from an appointment and key box system managed by the MLS. The system records every entry and identifies all agents that have entered a property. It is the agent’s job to screen potential buyers both before they enter your home and before you enter into a contract with them. 

The opinions expressed are of the individual author for informational purposes only and not for the purpose of providing legal advice. Contact an attorney to obtain advice for any particular issue or problem. [where: 75230]

Getting a Texas Homestead Exemption

A reader writes: “I bought a home in 2018 and my taxes are escrowed by my mortgage company. How do I get a homestead exemption to get a discount on my taxes? Do I need to repeat the process every year? How much does it save me?” 

You most definitely want to know how to file for a homestead exemption for your 2019 property taxes. To get a homestead exemption, you must own and live in the property as your principal residence as of Jan. 1 of that tax year. So, if you purchased in 2018, you may apply for that exemption after Jan. 1, 2019. 

A homestead exemption removes part of your home’s value from taxation, so it lowers your taxes. I don’t know the details about your home to tell you how much a homestead exemption can save on your property taxes, but it is generally about 20 percent. Given the property tax rates in Texas, it is worth the few minutes it takes. 

To qualify, your home must also be owned by you as an individual (or individuals). A corporation or other business entity doesn’t qualify for this exemption. Do not pay someone else to do this for you. It is free and you can do it online in a few minutes. 

Here is a step-by-step guide for how to apply for a homestead exemption in the DFW area: 

• First you need to change the address on your driver’s license to your new home address. You may do that online as well for a fee. You’re going to need to submit a copy of your driver’s license or Texas ID card that shows the same address as the homestead property. Take a photo of it or scan it to upload with your online homestead application. 
• Go to the appraisal district web site for your county appraisal district. Property tax sites for the DFW area include: Dallas County Appraisal District, Tarrant Appraisal District, Collin County Appraisal District, Denton County Appraisal District and Rockwall County Appraisal District. 

• Find your property on the appraisal district site and open that page to show your account. There should be a choice for forms or exemptions. Just find the link and click on it. 
• Follow the directions for filing your exemption and fill out the online form. You’ll need to upload that copy of your driver’s license. Without it, the application will be denied. But it is quick and easy. 

You will only need to do this one time for the property you are currently occupying. Once you receive the exemption, you don’t need to apply again unless for some odd reason the tax assessor asks you to repeat the application. 

The deadline to apply is April 30. But don’t procrastinate — do it now. 

The homestead exemption is only good for a property that you own and occupy as your principal residence. If you own more than one property, the tax folks will only allow you the one exemption. 

Look for your property tax notice in May. Your property taxes are determined by (1) how much the appraisal district says it is worth, and (2) the tax rate that your local government entities set. Those entities include the county, city and school district. 

If the assessed value is more than what you paid, you may want to protest the value. Instructions for protesting are included with your tax notice. 

The opinions expressed are of the individual author for informational purposes only and not for the purpose of providing legal advice. Contact an attorney to obtain advice for any particular issue or problem. [where: 75230]

New Home Buyer Scams to watch out for

After the paperwork has been signed and you’ve been handed the keys, there are plenty more expenses involved in moving into your new home — packing supplies, connecting utilities, hiring movers, new appliances or furnishings, etc. However, there are certain costs after buying a home that new homeowners should not incur despite a barrage of letters telling them differently.

One common mail notice that buyers receive is for filing a homestead exemption. New homeowners often don’t realize they can file their own exemption at no cost and don’t need a third party. It isn’t necessary to pay fees ranging from $50 to $100 for this service. But because these solicitations are deliberately designed to look like they come from a governmental agency, and often present a deadline for filing, new homeowners frequently fall for the scheme.

Another deceptive bunch of official looking letters come from companies offering to send the homeowner a copy of their deed. For a fee, they will save the new owner a trip to the courthouse to get their deed.

“Don’t be fooled,” advises Tara Williams, president of Carlisle Title. “Documents that set out the ownership and interest in properties are recorded in the local county or jurisdiction by the title and escrow company who close the transaction. Once recorded, many of the originally signed documents are returned to the buyer of the property, along with the title insurance policy.”

She confirms that copies of deeds may be obtained from the county register’s office. However, you don’t need a copy of your deed. The title company will generate the deed if you decide to sell your property someday. “One should not be concerned if the deed is misplaced, and certainly should not pay a third party to obtain copies,” she adds.

These solicitations aren’t exactly illegal – just misleading. As are the letters for mortgage protection insurance that give the impression they’re from your mortgage company. Examine the names and logos a little closer, and you’ll find them deceitfully clever at trying to sell you their services.

So where do these businesses get your information? Some folks have the mistaken belief that the title company or real estate broker shares their information. That is not the case. Williams confirms that reputable title companies do not allow outside parties access to confidential or personal information.

“We value and protect our clients’ information throughout the entire transaction, and after the closing as well,” says Williams. “Protecting our clients’ privacy is of utmost importance to Carlisle Title.”

“Third parties may access the information about your recently closed transaction through the county register’s office,” she says. “With this information, third parties know that you are buying a property and may put you on their solicitation list.”

“If you are looking for a copy of a deed, title policy, or other document from your closing, contact your title company before paying a third party,” she recommends.

Why pay for goods or services you don’t need or can get for free?

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Oh Hail! Beware Dallas Roofing Scams

It's spring storm season in Dallas and hail damaging your roof is always a possibility. But beware of scammers posing as legitimate roofers. After the storm passes, these gypsy roofers flock to our neighborhoods offering their services. You'll find loads of fliers and "contractors" knocking at your door to solicit business.

Here are few tips to avoid getting ripped off:

1. If they come to you - knocking on your door - don't use them. Trustworthy roofers are busy after a storm. They don’t have time to solicit business door to door. They’re too busy with work that was referred by satisfied customers. Often these so called "gypsy roofers" will show up at your door posing as a legitimate roofing company. They'll offer an estimate and ask you for a deposit. You'll never see them or your money again.

2. Get a local address and references. Hire an established roofer with roots in the community and a stake in maintaining a good reputation. If they aren't local, don't use them. 

3. Never, ever, ever pay a deposit immediately. Gypsy roofers want deposits up front and contracts signed now. I know it seems logical that a roofer needs a deposit to buy the materials to get started. But an honest roofer isn’t afraid to leave and give you time to think and make an educated choice. An established roofer doesn’t mind starting a job using company money and has funds to buy materials without your help. A roofer confident in his skill wants you to compare his quote and work to others. 

4. Don't let just anyone inspect your roof. Avoid unsolicited estimates and give the insurance adjuster a chance to be the first one to examine your roof for damage. Take photos before anyone examines it. A common scam by storm-chasing roofers is to deliberately cause more damage. When a disreputable contractors gets on the roof before the insurance adjuster, they may use a small objects to cause all kinds of damage. When the adjuster looks at it, the estimate of damage is inflated, allowing the roofer to earn more from the job than he might have otherwise.

5. Don't let a door to door solicitor inside your house. But also be aware that they could be working in teams with one keeping  you busy outside talking about your roof while the other sneaks in and robs you. 

Texas has one of the highest rates of fraud in the roofing repair industry. It is mostly due to a lack of state regulation over roofing contractors. They are not required to be licensed like plumbers and electricians and this allows gypsy, drive-by and storm-chaser roofers. They know full well that insurance adjusters are following close behind after a big storm.

Watch out for them and help warn our elderly neighbors since they tend to be easy targets for these scammers.
[where: 75230]

Be wary of internet Realtor ratings

Looking for a Realtor?

The internet is a fantastic resource for finding someone capable and competent. Recommendations from real people are always better than paid advertisements.

But how do you know if the reviews you are reading are from actual consumers or if they were professionally created and paid for to make the agent look good? I get calls and emails every week soliciting my checkbook to help enhance my online image. Lots of folks want to either help get me on the first page of Google, improve my standing on Yelp, find clients from Zillow, ... the list goes on.

Most of them amount to paying for positive reviews on sites that supposedly rank and rate agents. That's where we have a problem.

So how do you know which sites can you trust for honest Realtor ratings? The only really legitimate forums are the ones that agents can't buy their way onto a list or pay for good reviews. To find a recommended agent in Dallas, try:

• Angie's List
• D Magazine's list of Best Realtors
• Texas Monthly Magazine's 5 star agents
• LinkedIn 

These publications poll actual buyers and sellers and don't require agents to purchase advertising to be recommended. And an agent can't purchase a spot on to the list. Likewise, they don't allow just anyone to post negative information about an agent without checking them out to ensure accuracy.

Safety Tips for Home selling without a Realtor

Safety and security are major issues when selling your home without an agent. A For-Sale-By-Owner sign is an invitation to strangers to wander through your home. Opening your door to a criminal is the last thing you need when selling your property.

The vast majority of lookers are honest. However, there are criminals whose mode of operation is to disguise as a home buyer. Security measures are necessary for the possibility of visitors who see your home as an opportunity for crime and an easy mark for theft.

While I believe that the best way to sell your house is with the assistance of a Realtor, some homeowners prefer to handle it themselves. Here are 9 safety tips. I hope you’ll find them helpful and that you will contact me if you should decide to use a Realtor.

When someone rings the doorbell, you need to be prepared and take precautions to maintain safety for you and your family.

1. Make all your showings, by appointment only. Get some information and check out the prospective buyer before you let them in your house. Always get a name and number and call them back to verify. Simply say, "let me check with my spouse for the best time and I will call you back."
2. Don’t be home alone when a stranger visits. This ‘truth’ hurts. Yet, being robbed, raped, or even worse – hurts a whole lot more.
3. Have visitors sign a guest book and ask to see identification. You are inviting strangers into your home and you have a right to know something about them. If possible, jot down a license plate number. Put the information in a safe place so if something happens, the police have a lead on a suspect.
4. Hide all valuables. Jewelry, credit cards, guns, silverware, and collections. Anything of value needs to be well hidden. Hide ALL prescription drugs.
5. Eliminate displays of personal information, such as which schools children attend.
6. Never leave a message on your answering machine informing callers that you are not home. Don’t let strangers know your schedule, such as when you or your spouse are not home, when you pick up kids, when you work, when you will be on vacation, ...
7. Request that visitors enter and exit through one door only. Have quick and easy access to all of your exits.
8. Never leave a stranger alone and watch everything they do while in your house. Keep a reasonable distance between you and your visitor. Never enter a bedroom, den or other room with a visitor. You could be trapped inside. Stay in the doorway and don't be distracted.
9. If you have a flyer about your house, do not put information on the flyer which would compromise security.

Seemingly innocent questions by a “potential buyer” may be designed to case your home. Beware of casual questions like “Do you have a security system?”. If you feel uncomfortable, tell the person you have another appointment and show them to the door.

These Dallas thieves also work in teams. A friendly, clean cut couple makes an appointment to view your house. When they get inside one of them asks to use the bathroom. While in the bathroom they search for prescription drugs. There is a big market for these.

Or they may be planning to rob you later. A nicely-dressed, well-spoken woman comes to see your home. She loves it and asks to take some digital photos so her husband, who is away on business, can see the pictures. You have no objections. In fact, the imposter has just taken pictures of your most valuable possessions and documented the location of the rooms. If you have a home security system, she may have taken a picture of the motion detectors and the security key pad.

I watch out for my personal safety and screen all prospects before showing them a home. As a licensed real estate agent, I and my clients, benefit from a security system managed by our MLS. The security key box records every entry and identifies all agents that have entered a property. The seller’s agent can access the information not only for safety reasons but to get feed-back from agents that have visited the home.
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Beware of Thief posing as a Home Buyer

He's back. The notorious thief who poses as a home buyer is back in Dallas and "working" the area. I get several calls a year from the victims of Stan Tucker because I posted information about him back in 2008.

His mode of operation is to pose as a potential home buyer. He claims to be looking for a property for his son, or himself or something like that. Currently it looks like he is targeting homes that are for sale by owner. Security is a major issue when selling a home without an agent and he is proof. Letting a stranger in your home is risky business for a homeowner.

Based on the calls and emails I've gotten, he has robbed homes from Waco to Stillwater, Oklahoma. This slippery snake is good at what he does and seems to always avoid getting caught in the act. Yesterday, I got a call from a homeowner in Lake Highlands where he did his usual routine.

He is currently driving a newer, silver pick up truck. It's the shorter style truck and the front license plate is turned up. For more information go to my past stories about him here:
http://lydiaplayer.blogspot.com/2008/09/thief-targeting-realtors-their-listings.html
and here
http://lydiaplayer.blogspot.com/2012/01/theives-still-target-dallas-open-houses.html

Or check out this Oklahoma news report about him that even gives his phone number as 214-505-9955. If he appears at your property or you discover that he's robbed you, please contact the police.

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Protect your Home from leasing scams

Scams involving homes for sale are becoming more and more common. Nothing makes my blood boil more than thieves and scammers. I've had direct experience with several of them and believe me, these folks have their rip offs down to an art. They make very good money swindling people.

The most common scam involves these crooks listing a home for lease that is actually a home for sale. Typically they present it as a house "for lease" at a very attractive monthly fee. This false lease listing will then appear on many sites such as Zillow, Trulia, HotPads, Craigslist and many more. Next thing you know, some poor schmuck appears at your door wanting to know when they can move in.

How do they do it?

• The scammer steals the information and photos from the 'for sale' listing details about the property, looks up the real owners name on the tax rolls, and offers the property for lease online.
• They offer the property for lease significantly lower in price than comparable properties in the area.
• A potential tenant sees an opportunity to get a "steal" of a deal on a property and emails the scammer ( who is using the agent's or real owner's name).
• The scammer claims they've decided to lease instead of sell and says they are currently out of town. The crook typically has a great story about wanting someone responsible to take care of the property vs. a higher rent.
• The scammer asks for deposit to be wired to London, Madrid, California, ... to secure the home at that low price.
• The potential tenant ignores common sense and wires money to the scammer.

How can the scammer list properties for lease without permission? Many websites allow anyone to list items for sale, including real estate, without first proving ownership. Thankfully, I've quickly discovered each time one of my listings has been the target of a scam and I aggressively deal with these fraudulent listings. I can usually get the listings removed within hours. But it sure takes a lot of time and effort preventing and dealing with crooks like this.

Since these criminals aren't going away, you may want to be aware of how to watch for them when your home is for sale. Law enforcement agencies will only become involved once someone has lost money to these thieves.[where: 75230]

Thieves still target Dallas Open Houses

I've told you about the risks of open houses before and about the thieves that like to 'work' them. This is just a reminder that they are still out there. The good ones are friendly, well dressed and know what they are doing. But they are slippery weasels and usually manage to escape getting caught by Dallas police.

 Last weekend, serial open house thief Steve Breed ( aka Max Holloway and other aliases) was at it again. He drives a black Ford Focus and typically targets North Dallas/Collin County area open houses. While he has been arrested for this before, he is still in the business of robbing homes but has lost weight since his last mug shot.

Also still working the metroplex is Stan/Dan Tucker. He moved to Oklahoma a couple of years ago where he took up robbing open houses up there but is now back in the metroplex and living in Ft. Worth. Apparently supports himself - or his habits - through what he picks up at open houses in that area.

If your home is for sale and it is open to the public, please ensure your agent takes the necessary precautions to keep your possessions safe and secure.   [where: 75230]

Avoid this scam when your home is for sale

While there may be fewer Realtors earning a living today, there is one group still making good money in real estate - scammers and crooks. I have exposed a few crooks and have featured a few of their scams on this blog.

Currently the increase in leasing activity has caused an increase in the type and number of leasing scams perpetrated against potential tenants and owners. The most common scam is a type of advanced fee fraud. This is similar to emails we've all received for years where a Nigerian prince needs our help moving $20 million out of the country and all we need to do is give him our banking information. 

How does that work with Real Estate?

In real estate, the lease scam works like this:

• Legitimate Realtor/Owner list property for sale and put it into MLS.
• Scammer uses exact listing details, real owners name, and often the listing agents name and offers the property for lease online using sites like craigslist, zillow, etc. 
• Scammer offers the property for lease significantly lower in price than comparable properties in the area. 
• Potential Tenant sees opportunity to get a "steal" of a deal on a property and emails Scammer. Scammer usually uses an email address with real owners name in it.
• Scammer claims to be an absentee owner or currently out of the country.
• Scammer asks for deposit to be wired to London, Madrid, California, etc to secure the property at that price.
• Potential Tenant suspends common sense and wires money to Scammer.

How can the scammer list properties for lease without permission?

Many websites allow anyone to list items for sale without first proving ownership. If you've ever bought or sold something on Ebay or Craigslist then you know how simple it is. Some websites do not allow the public to post properties for sale or lease. Realtor.com and ReloHomeSearch.com are two examples.  Some websites do allow the public to post properties for sale or lease. Trulia and Zillow are two examples as well as many 'by owner' sites.

As a seller, how can I protect myself?

Often, we don't find out about a fraudulent listing until a potential victim knocks on the door or calls the office. One tool you can use to look for fraudulent listings online is Google Alerts. Google Alerts allows you to set up an automatic Google search that will search for certain terms and alert you by email when new web pages are indexed by Google that contains those terms. For listing fraud, I recommend you set up an alert with your street address ( for example, if your address is 1234 Main St, Dallas, Tx) and the term rental or lease like:

"1234 Main" dallas rental or "1234 main" dallas lease

If someone posts your property for lease and you've registered it with Google alert, you should find out quickly. You'll be able to find out the exact website or web page where the listing appears and contact that company's fraud department.

How can tenants protect themselves?

• Deal locally with a reputable Realtor that you can meet in person at a traditional office.
• Verify the that the Broker or Realtor are licensed to operate in the state of Texas. (Tx Real Estate licensee search)
• Don't advance money on a property you've never toured.
• Don't wire money via Western Union or Moneygram to secure a lease.
• If it sounds too good to be true, then it's probably a scam. Proceed with caution.

What are sites or law enforcement doing to protect us?

Some sites are very proactive in blocking this type of abuse. Some have implemented extra security checks or started charging a fee to list property. My broker and I have aggressively dealt with fraudulent listings that appear online. We can usually get the listings removed within hours or minutes. 

 

More resources

Fraud Alert - Virginia Cook, Realtors

Wikipedia - Advanced-fee fraud
Trulia PSA - How to avoid scams

Craigslist - About Scams

Internet fraud complaint center

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