Police in Southampton, New York, are warning real estate agents and homeowners to be on the lookout for “outsider” scammers looking to make a quick buck by reselling luxury properties they don’t actually own.
The Long Island hotspot has seen a “skyrocketing” in scams, where most of the homes are second homes, and it could be even easier to pull off in other tourist destinations around the country, where real estate lawyers aren’t always involved in the transactions, experts told Fox News Digital.
“Criminals posing as property owners may contact real estate agents to negotiate the sale of unsecured vacant land on their behalf, then defraud potential buyers by accepting the transfer of funds to an account outside the city,” police said in a statement.
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A waterfront home in Southampton, New York, on Wednesday, May 22, 2024. Local police say the summer hotspot has faced a surge in real estate scammers. (Bing Guang/Bloomberg via Getty Images)
“This is a hot topic and it’s being discussed between offices,” said Suffolk County Realtor Zachary Shea. “It’s not just a Southampton issue, it’s a whole other area in the East.”
Some scammers are easy to spot because they call from out of state and only have publicly available information, he told Fox News Digital.
“It’s pretty obvious. They’re calling from weird area codes, the email they’re using is ridiculous, and they have information that you can find in public records, but that’s it,” he said. “When you investigate further, they either say they’ll call you back or they want to sell it now.”
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A waterfront home on Wednesday, May 22, 2024 in Southampton, New York. (Bing Guang/Bloomberg via Getty Images)
A typical seller is in no rush and will research an agent before hiring one, he said. It’s unusual for someone to call out of the blue with a bullet list of information, which is also a red flag.
“I think this is just a case of them finding new ways to scam people,” he said. “I wouldn’t be surprised if they start using AI to scam people. They’re going to contact property owners, get them to talk, get their opinions. It’s amazing what they can do now.”
Scammers look for properties without mortgages and use false identities and fake powers of attorney to deceive real estate companies without the homeowner’s knowledge, said David Gelman, a New Jersey-based lawyer and former prosecutor who handled similar cases.
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A narrow footbridge spanning a stream leading to Peconic Bay at sunset in Southampton, New York. (iStock)
“The only saving grace for the homeowners was that they had title insurance, so they were able to get their homes back,” he told Fox News Digital. “It was [mess] But it will take years to fix.”
Red flags include secretive “sellers” who prefer text or email over meeting in person or video calling, who are seeking a cash deal below market value, or who want to list their property for sale without putting up a physical for sale sign.
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Police issued the warning as the summer holiday season gets underway and tourists flock to their favourite holiday destinations.
“Online, it’s much easier for criminals to scam people by offering products they don’t actually own,” says Neama Rahamani, a Los Angeles-based litigation lawyer and former federal prosecutor. “We see this a lot with high-demand items like sports and concert tickets, but Hamptons real estate is no exception.”
A single-family home on Wednesday, May 22, 2024 in Southampton, New York. (Bing Guang/Bloomberg via Getty Images)
Similar scams have victimized homeowners whose homes have been fraudulently listed on property listing apps such as Airbnb and VRBO.
In April, a real estate agent living in a town just outside East Hampton said he was shocked to find his vacation home listed on Airbnb by someone else. GenuineAccording to industry reports, she only discovered the scam after a potential victim contacted her directly and asked how to pay – by wire transfer of $25,000, rather than through the app.
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Ponquogue Beach is a sandy beach accessible by bridge over Shinnecock Bay in the town of Southampton, New York. (iStock)
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Police are urging real estate agents to take greater measures to verify the identity of sellers. Ask for multiple forms of identification, as scammers have been arrested for using fake passports. Request a face-to-face meeting. Ask for details that only someone with local knowledge would know. Talk to neighbors and search for the seller on social media.
