Wild Lease Scam – Can the Market Get Any Crazier?

I love the real estate market – there’s always a great story to be told, and a new experience to be had. Just when I thought things couldn’t get any crazier, they did. Here’s the story…

I recently represented a young lady in the purchase of her first home. Being a first time home buyer, we were looking at small homes that were financially distressed – we were bargain hunting. We found the perfect home in east Dallas, a 1950’s era 3/2 that was in short sale for about 60% of the value it had appraised for just two years ago. As we toured the home, we could not access the garage – it was locked and the key did not fit. When I later inquired about accessing the garage, I heard the craziest story ever:

After the owner vacated the property, a person we’ll call Joe ConMan noticed that it was vacant. He proceeded to pose on the internet as the owner of the property. He entered into a lease agreement with a unsuspecting young couple, newly married with a small child. He collected the first month’s rent and the damage deposit. On move-in day, the Tenant could not get access to the house. Joe Conman has the Tenant call a locksmith, and then meets them at the property. He cons the locksmith into believing that he is the property owner, gets him to open the house, and then leaves – vanishing to never be seen again.

The Tenant begins moving into the house when a neighbor comes over to investigate. Having not seen either the owner or the owners agent, he calls the listing agent to confirm that the house had been leased. A very surprised listing agent then called the police. The Tenant was forced to vacate the property, and lost the damage deposit and rent they had paid to Joe ConMan.

I learned a couple of lessons from this story. First, get to know the neighbors around your listings, especially if they are vacant. The actions of a consciencious neighbor kept this situation from getting any worse. Second, keep a close eye on your vacant property listings – you never know when something crazy like this might happen to them.

TREC Warns of Real Estate Brokerage Scam

TREC Logo
Texas Real Estate Commission

My Dad always told me that if something seemed too good to be true, it was probably not true. This simple piece of advice has kept me out of many sticky situations. I just received an e-mail from the Texas Real Estate Commission (TREC) warning the public about real estate brokerage scams in the DFW area. I felt compelled to pass the warning along. It is very easy to find out if a person hold a license from the Texas Real Estate Commission – you can look up any persons license number by following this link.

Here is the beginning of the warning message from the Texas Real Estate Commission:

The Texas Real Estate Commission Standards and Enforcement Services Division (TREC) has received complaints against a group of individuals and companies that have been doing business in the Dallas/Fort Worth area. The individuals and companies named in the complaints represent themselves as real estate agents and real estate brokerage companies but do not hold Texas real estate licenses. Owners of real property, tenants, buyers, and investors claim to have lost large sums of money related to the group’s real estate schemes. Among other things, the complainants allege that the group takes and keeps deposits for properties over which they have no authority or no control. They allegedly do not pay rent to property owners on property they claim to manage for those owners, or take large security deposits from tenants and then keep the money. They take deposits or earnest money on properties that they claim are available for a short sale but in reality are days away from foreclosure. Apparently, much of the solicitation of potential victims has been conducted through www.craigslist.com.

For the full article, click here.