Could you be sued or criminally prosecuted for fraudulently listing a property without the authorization of the actual owner?

Failure to take basic steps to confirm a seller’s identity can result in losses of hundreds of thousands of dollars for buyers who close on these fraudulent listings;  a title nightmare for the true owners; and the risk of costly lawsuits and even criminal prosecution for listing brokers who fail to perform due diligence before taking a listing.

When a seller asks you to list his/her property, meet him or her in person.  If the person will not meet in person, insist on scheduling a video conference on a platform like Zoom, Facetime, etc. that allows you to see each other. 

There is NO substitute for meeting a potential client face-to-face.  

RIAR, MLS, and NAR have published various tips about how to identify and avoid real estate scams.

If you suspect that a scam is taking place, contact State-Wide MLS to have your listing removed.  Also, it’s a good idea to report it to the FBI Internet Crime Complaint Center and the local police or the true owner may take legal action against you.

Trust your instincts.  If it sounds too good to be true, it probably is.  For more information, contact the RIAR Legal Department at 401-432-6945 or email [email protected].