| Each week, the Silicon Valley Association of Realtors (SILVAR) shares local housing data, sales trends and other real estate-related topics. This week’s column looks at real estate fraud and its scope as revealed in the National Association of Realtors’ 2025 Deed & Title Fraud Survey released last month. |
The process of buying and selling property has become much more convenient in recent years as the real estate industry has shifted toward online documents to complete transactions. This pivot away from paper, however, has also provided new ways for scammers to defraud homebuyers.
FBI data shows that scams involving fake emails mimicking title companies, banks and other parties involved in the homebuying process have exploded over the last decade, rising from less than $9 million in losses in 2015 to $446.1 million by 2022, CNBC reported last July after a Silicon Valley exec was defrauded nearly $400,000 by cybercriminals while buying a home. She reportedly wired her down payment to the scammers after receiving a fake email that appeared to be a response to a message she had sent her mortgage broker asking about the remaining steps she needed to complete to finalize the purchase.
Scammers are also using computers and AI to fraudulently take ownership of someone else’s property title by forging documents and creating fake notary stamps online.
According to the National Association of Realtors’ recently released 2025 Deed & Title Fraud Survey, 63% of respondents nationwide reported awareness of title fraud occurring in their markets within the past 12 months.
Title fraud, also known as deed theft, occurs when someone fraudulently takes ownership of someone else’s property title, often by using forged documents or fake IDs to record transfers with the county recorder or by falsely representing themselves as the owner to list and sell a property.
According to the survey, which collected input from professionals in Realtor associations across 43 states and territories, respondents in the Northeast region of the U.S. reported the highest awareness of title fraud occurrences (92%) in their markets, followed by the South and West, where 59% respondents in each region reported known instances of title fraud. A little over half (53%) of respondents in the Midwest were aware of instances of fraud.
These title scams are more common in central cities and suburban areas and frequently involve vacant land rather than owner-occupied properties. In recent years, California has seen a rise in “vacant land scams”, prompting the California Department of Real Estate to release a warning alerting the public of scammers posing as property owners who were contacting real estate agents and requesting their assistance to sell vacant homes and land they didn’t own.
Santa Clara County has been among the areas to receive reports of this type of scam.
How to spot red flags
Understanding how these scams work can help you spot potential red flags and possibly prevent you from being defrauded.
Here’s how mortgage wire fraud scams work:
These scams are a way for criminals to steal closing cash or a down payment. Scammers, who use phishing software to hack emails and obtain information about your real estate transaction, may impersonate the real estate agent, mortgage broker or escrow agent. Using legitimate-looking emails, they typically change the wiring instructions at the last minute due to “account issues” or “errors” with your closing. They ask you to wire the money directly to your lender, which is actually a fake bank account they have set up so the money goes directly to them.
To protect yourself from being scammed, Rocket Mortgage recommends that you speak to your lender and agent in-person about the closing process ahead of time. If you receive a last-minute change, call your lender, using a phone number you know and trust, to confirm any wiring instructions. Never discuss the closing process via email, as phishers can use this information to later pose as your lender or agent.
Here’s how title fraud scams work:
In this hoax, the criminal searches public records to identify owners of real estate that is free of mortgage or other liens. Most often, vacant lots and investment, vacation or rental properties that are not occupied by the owner are targeted. The scammer will then pose as the owner and contact a real estate agent to list the property for sale with the intent of pocketing the sales proceeds.
These scammers typically say they cannot personally meet with either the listing agent or buyer of the property because they either live in another state or abroad or are traveling.
The criminal takes advantage of e-notaries and online communications, attempts to defraud the actual owner, the buyer and every service provider involved by selling the property under market value with an exceptionally quick escrow, according to the California Association of Realtors.
The scam usually goes undiscovered until the sale closes and the transfer documents are recorded with the county. This scheme has particularly affected the elderly and foreign real estate property owners as there are no means to automatically notify the legitimate owners, according to the Department of Real Estate.
Real estate professionals and homebuyers should watch out for these common tactics: The seller requests the property be listed below market value to generate immediate interest; they don’t want a “For Sale” sign be posted on the property; they request a preference for a cash buyer, quickly accepts an offer and demands a quick closing; they refuse to meet in person and demands to use their own notary; and they insist that proceeds are wired to them.
What to do if you think you’ve been scammed
File a complaint with the FBI and local police
Contact the FBI’s Internet Crime Complaint Center to submit a report and contact your local police.
Notify the county recorder and title insurance provider and place fraud alerts or credit freezes to prevent further identity misuse. Acting fast can help limit the damage, according to tips from the National Association of Realtors,
Santa Clara County residents
For residents of Santa Clara County, the Santa Clara County Office of the District Attorney has established a specialized Real Estate Fraud Unit dedicated to investigating and prosecuting such cases. This unit accepts formal written complaint forms along with all relevant supporting documentation, enabling victims to officially register their concerns and provide crucial evidence for potential legal action.
San Mateo County residents
The San Mateo County Assessor-County Clerk-Recorder’s Office verifies and records property ownership documents. To determine if you’ve been a victim of title fraud, the Office recommends residents review their credit reports every four to six months and regularly check the County Recorder’s online Grantor/Grantee Index to monitor property ownership transactions.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
Real Estate Editor Linda Taaffe contributed to this article.
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