Ohio Division of Real Estate warns of fraudulent listings

The Ohio Division of Real Estate and Professional Licensing issued a fraudulent listing alert after receiving calls from agents who were contacted about fake listings.

It stated, “In the current low-inventory real estate market, licensees may find themselves facing unique challenges and pressures. The Division of Real Estate and Professional Licensing recognizes the struggles licensees are encountering and emphasizes the importance of maintaining diligence and caution in all transactions. We have received calls about people contacting agents to initiate fake listings—a scam where people are listing properties for sale that they don’t own and that aren’t for sale.  For example, a person posing as the owner of a vacant lot or home may ask an agent to list the property and present a false ID to prove their ownership.”  

It provided the following tips for real estate licensees to prevent fraudulent listings:

• “Exercise Due Diligence: When approached to list a property, do thorough research and verification. Avoid rushing into listing agreements without conducting proper due diligence on the ownership of the property.
• “Be Vigilant and Attentive: Be alert during interactions with clients and always pay attention to details. Request photo identification to validate the identity of individuals involved in transactions. Stay vigilant for signs of fake identification and promptly report any suspicions to your broker or appropriate authorities.
• “Multiple Owners: In listings involving multiple owners, ensure that all relevant parties provide their signatures. This includes both spouses, all heirs, and all members of an LLC to prevent complications.
• “Verification: Utilize resources such as the auditor’s site and recorder’s office to confirm ownership details. Verify the authenticity of documents to protect against fraudulent activities.
• “Client Pressures: Do not succumb to clients who pressure you to list properties quickly at the cost of thorough procedures. Prioritize compliance with regulations and safeguarding the interests of all parties involved.
• “Report Suspicious Activities: If something appears amiss or raises suspicion, do not hesitate to escalate the issue to your broker and consider filing a police report if necessary.
• “Best Practices and Policies: Brokers and brokerages are encouraged to establish and enforce policies and best practices that promote adherence to regulatory standards and safeguard salespersons. These policies can serve as protective measures in situations where clients exert undue pressure.”