Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE SUBSCRIBE LOG IN
AddControlToContainer_DynamicNavigation3
The Legal Description > News > Colorado Division of Real Estate issues advisory on fraudulent sellers

Colorado Division of Real Estate issues advisory on fraudulent sellers

Email A Friend Printer Friendly Version
0 comments
Regulatory Updates
Monday, May 22, 2023

The Colorado Division of Real Estate issued a Broker Practice Advisory on fraudulent sellers.

It states, “While this advisory will focus on scenarios where the fraudsters target real estate licensees, variations of the scam may omit a licensee and behave like a For Sale By Owner seller. The essence of the scam is that a licensee is contacted about selling a property by a fraudster in an attempt to steal the proceeds from the sale. Most commonly, initial contact is made by telephone or even more often, by email. The fraudster is looking to sell the property, usually on an expedited basis because they need the proceeds for another project or other investment. In truth, the fraudster has selected this particular property, which they do not own, because it is undeveloped or overlooked by the actual owner.”

It noted that fraudsters take significant steps to appear authentic. It gave the following examples of steps they may take:

  • “It is common for fraudsters to contact brokers via email or telephone to initiate the transaction. This might be due to the fact that the fraudster is attempting to cover up an accent or that they do not speak the preferred language of the actual property owner.
  • “In many cases, the fraudster will not make in-person appointments or will explain that they are currently working out of state or even out of the country.
  • “Commonly, fraudsters develop a series of excuses for (1) why they want to sell the property, (2) why time is of the essence, or (3) why they do not want other family members to know about the transaction (perhaps because they would ask for proceeds from the seller’s estate or will).
  • “Many brokers can identify that something might be off in transaction when a fraudster purports to be a representative of the seller for some reason. They may be the legal guardian, legal custodian, the attorney-in-fact, the translator, a family member, or the close family friend for the ’actual owner.’ In cases such as this, the fraudster may present documentation in support of this claim such as letters from a probate court, an executed power of attorney, or appear to carbon copy (cc) the actual owner on email correspondence. 
  • It has been reported recently that copies, photographs, or scanned images of driver’s licenses or other government issued identification have been presented to real estate licensees which purport to show that the fraudster is who they are claiming to be. It is important to remember that when copies, photographs, or scanned images are digitized and delivered, the quality of the image is degraded and therefore, easier to doctor by a fraudster.”

It further stated that Colorado real estate licensees should conduct due diligence. It provided several ways to help conduct that due diligence. They include:

  • “Schedule a meeting with the owner in-person, preferably at the property where you can meet the seller and ask questions. If your request for an in-person meeting is balked at, this might be a red flag.
  • “Ask questions about conditions on the property. Are there any improvements? What is the terrain like? Are the adjacent properties owner occupied or developed? If answers to these questions do not reflect reality, this also might be a red flag.
  • “When visiting the property, see if you can contact any neighbors for information about the owners. In these scams, a common thread is that neighbors are somewhat surprised to hear that the seller is interested in selling. Maybe this is because the neighbors know that the property has been in the seller’s family for generations or maybe because the actual seller said, ‘I am never selling’ or ‘if I ever want to sell, I will make you an offer before I list the property.’ Speaking with neighbors might give you more information about the actual owner (profession, principal address, contact information).
  • “Using common internet searches and maybe even social media can be helpful resources to confirm the address or other contact information (telephone, email, etc.) for the seller. The internet might also provide you with pictures of the owner, which you can compare to any information provided by the fraudster.
  • “If the property is located in a common interest community (planned community, condominium, homeowners’ association, property owners’ association, cooperative, or timeshare), contact the association’s board or community association manager for information on the seller-note. You will have to contact the association even if the seller is legitimate to obtain governing documents for the association which would need to be disclosed to a buyer pursuant to the contract to buy and sell.

“When asking for any of the above, if the fraudster quickly withdraws or informs the broker that they have hired a different broker, this also might be a red flag,” the advisory stated.

Today's other top stories
Appeals court hears dispute between mortgage assigner, insurer
Insurance Data Protection Act introduced to Senate
Trump administration proposes cutting $491 million from CISA budget
FHFA director accuses NY AG of mortgage fraud
Colorado passes bill to create title insurance industry advisory group


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 965 times.
News by Topic   News by Edition   In-depth Reports   Events   Subscribe
Court Report
Cybersecurity
Excess Equity
Industry News
Legislative Developments
Regulatory Updates
Remote Online Notarization
The Blotter
The TRID Journey
 
March 31, 2025
April 14, 2025
April 28, 2025
May 26, 2025
Archives
 
2025 State of the Industry
Cybersecurity Today
Technology as a Compliance Tool
Real Estate Compliance Outlook
Title Insurance Alternatives
eClosing Security
Attorney State Perspectives
Technology as a Compliance Tool
Archives
 
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars
 
Newsletter Subscriptions
Free Email Updates
Try a Free Edition
  About   Library   Other Publications  
 
The Legal Description
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Blog - Tuesdays with Mary
Cybersecurity Central
Court Cases
Keys to Real Estate Podcast
Legislation
Position Papers
Regulations
RON Resource Center
 
The Title Report
RESPA News
Valuation Review
Dodd Frank Upate
 
                 
Copyright © 2000-2025 The Legal Description
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.thelegaldescription.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Title Report
> RESPA News
> Dodd Frank Update
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
NEWS BY EDITION
IN-DEPTH REPORTS
EVENTS
LIBRARY
FREE EMAIL UPDATES
ABOUT
SUBSCRIBE
Court Report
Cybersecurity
Excess Equity
Industry News
Legislative Developments
Regulatory Updates
Remote Online Notarization
State AG Enforcement
The Blotter
Current Edition
April 14, 2025
March 31, 2025
March 17, 2025
March 3, 2025
Archives
2025 Voice of the Title Agent
2025 State of the Industry
Cybersecurity Today
2024 Title Technology
eClosing Innovations
Real Estate Compliance Outlook
Title Insurance Alternatives
Archives
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
Evolving Realtor Relationships
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact
Artificial Intelligence for Title
Industry and Regulatory Outlook
RESPA Updates You Need to Know
Strategies post-NAR settlement
Evolving Consumer Relationships
Fraud Threats Facing Title
Excess Equity
2024 Economic Forecast Series
Securing Your Cyber Network
Webinar Archives
Cyber Solutions Showcase
Keys to Real Estate Podcast
Blog - Tuesdays with Mary
Excess Equity Watch
Cybersecurity Central
eClosing Solutions Showcase
Executive Interview Series
RON Resource Center
Case Law
Legislation
Position Papers
Regulations
By Year
By State
2012
2011
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Comment Letters
White Papers
Testimony
The Legal Description
Contact Us
Advertise
Request a Media Kit
Are You An Expert?
Subscriber Agreement
Social Media