How to Protect Yourself from Real Estate Scams in Maryland
Real estate scams can be devastating for home buyers and sellers, especially in states like Maryland where the housing market is competitive. To ensure you’re making sound decisions in your real estate transactions, it’s vital to be aware of common scams and how to protect yourself.
1. Research the Real Estate Agent or Company
Before engaging with any real estate agent or agency, take time to research their credentials. Check if they are licensed through the Maryland Department of Labor’s Real Estate Commission. Read reviews online and look for any complaints or legal issues associated with them. A reputable agent will have a transparent history.
2. Verify Property Listings
In many scams, fraudsters create fake listings to lure unsuspecting buyers. Always verify that property listings are legitimate. Avoid deals that seem too good to be true, and cross-reference listings on multiple platforms. Additionally, visit the property in person and confirm ownership records through the Maryland State Department of Assessments and Taxation.
3. Use Secure Payment Methods
When making deposits or payments, always use secure and traceable methods. Avoid wire transfers to unknown accounts and never pay cash to individuals without proper documentation. Consider using escrow services that can hold funds securely until all parties are satisfied with the transaction.
4. Be Wary of Unsolicited Offers
If you receive unsolicited offers or requests for information about your property, be cautious. Scammers often pose as interested buyers or investors. Always verify the identity of anyone contacting you and do not provide personal information until you are sure of their legitimacy.
5. Get Everything in Writing
Always ensure that any agreements or offers are documented in writing. This includes contracts, terms of sale, and communications regarding the transaction. A written record will protect you should any disputes arise in the future.
6. Attend a Home Inspection
Purchasing a property without a proper home inspection can lead to costly surprises. Always hire a licensed inspector to assess the home before finalizing a purchase. This step not only ensures the condition of the home but also protects you from potential scams involving misrepresented property conditions.
7. Educate Yourself on Common Scams
Knowledge is your best defense against real estate fraud. Familiarize yourself with common scams, such as rental fraud, title fraud, or foreclosure rescue scams. Resources like the Maryland Attorney General’s Office provide valuable information about the types of fraud to be aware of in the Maryland real estate market.
8. Consult a Real Estate Attorney
Engaging a real estate attorney can provide layers of protection in your transaction. An attorney can help you navigate contracts, offer insights into local real estate laws, and spot potential scams you might overlook. Their expertise is invaluable, especially for complex transactions.
9. Report Suspicious Activity
If you encounter a potential scam or if any irregularities arise during your transaction, report it immediately. Contact the Maryland Attorney General's Office or local law enforcement. Prompt reporting can help protect not only yourself but may also prevent others from falling victim to the same scam.
By taking these steps, you can protect yourself from real estate scams in Maryland and make informed decisions in your home buying or selling journey. Stay vigilant, do your research, and trust your instincts to safeguard your real estate investments.