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Fraudulent Realtors Scamming House Hunters
POSTED: 8:11 pm PDT July 18,
2008
UPDATED: 9:42 pm PDT July 18,
2008
VALLEJO -- California house hunters, beware of a new scam: fake realtors renting out homes they don't own.Con artists are taking over empty homes, advertising them for rent and then running off with the deposit.At least one Vallejo family fell victim to the scam this past week, and district attorneys in Solano and Alameda counties report several calls to their offices about similar incidents.Realtor Brian McPherson, who discovered one of his properties in Vallejo had been used in the scam, said the scam is an old one. "I saw it back int he 1970s when there were a lot of foreclosures," said McPherson to the Contra Costa Times. "It works best when there are a lot of abandoned, bank-owned properties that Realtors can't keep an eye on."In McPherson's case, his company Tipp Realty emptied the foreclosed house and had up for sale. Last week, he drove by it to find the for-sale signs gone, the lights on and the locks changed."I called PG&E early the next morning and ascertained that on July 11, the power had been transferred out of the name of Tipp Realty at Glen Cove and into the name of a private party," said McPherson.The family inside said they had signed a lease with a company called "Big Sky."McPherson said scammers usually entice renters with low rates, and advertise the properties on Craigslist or in the local newspaper. Then they draw up a fake lease and ask for a cash deposit.Last week Carlsbad Police in arrested two men advertising a home for rent on Craigslist they didn't own. The men collected thousands of dollars in security deposits and rent before being arrested."This is happening right here and right now and it is happening fast," according to a recent Solano Association of Realtors newsletter. "This association has received two reports this week of this activity."Renters can protect themselves from fraud by checking the property title or tax records at the county recorder's office and confirming the owners name. They can also check the rental agency's license with the California Dept. of Real Estate, which you can visit here.
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