Attention Property Owners: Watch Out for These Common Real Estate Scams

Real estate scams are becoming more sophisticated every year, and Montana is no exception. Whether you own vacant land, a rental property, or your primary residence, it’s important to stay aware of the tactics scammers use, and how to protect yourself. Here are three of the most common scams targeting property owners today.

1. Land & Title Fraud

One surprisingly common scam in Montana involves vacant land. Here’s how it works:

A scammer poses as the rightful owner of a vacant parcel and contacts a real estate agent wanting to sell the property. They often have convincingly fraudulent IDs and documents—enough to fool professionals at every step of the transaction. The property is usually priced below market value, resulting in a quick sale before anyone realizes something is wrong.

Many real property owners don’t discover the fraud until they:

• go to pay their property taxes,
• notice construction beginning on their land, or

• see a “for sale” sign appear on their lot without their knowledge.

   

How to Protect Yourself

• Set up Google Alerts for your property address. This notifies you if your address appears in a new online listing.
• Monitor your property title. Many counties, including Gallatin County, offer free property fraud alert services that notify you anytime a document is recorded in your name.
• Confirm your mailing address with the county. Make sure your property tax address is current. Fraud often succeeds when notices are mailed to an outdated address or a mailbox no longer associated with the owner.

2. Wire Fraud

Wire fraud typically targets buyers, but it can affect sellers as well, anytime funds are being transferred as part of a transaction. Criminals hack or spoof the email accounts of real estate agents, lenders, or title companies. Then they impersonate these professionals and send fake wiring instructions to unsuspecting participants.

Because the timing is usually close to closing day, buyers often assume the instructions are legitimate and end up wiring tens or hundreds of thousands of dollars directly to a criminal account.

How to Protect Yourself

• Be wary of last-minute changes to wiring instructions. Title companies rarely change wiring details.
• Verify instructions in person or by phone using a number you know is legitimate—not one listed in an email.
• Use a cashier’s check if you’re uncomfortable wiring funds.

3. Fake Rental Listings

This scam primarily targets renters, but it can affect property owners as well. Scammers copy photos and descriptions from legitimate real estate listings, especially vacant homes, and repost them as rental properties. They often claim the owner is “out of town” and encourage potential renters to drive by, look through windows, or send a security deposit before viewing.

How to Protect Yourself

For Property Owners:

• Set up Google Alerts for your property address to catch unauthorized rental listings.

For Renters:

• If the price seems too good to be true, it probably is.

• Never send money before verifying the property is legitimately for rent and meeting someone in person.

   

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