Which warning sign may indicate real estate fraud?

When evaluating potential signs of real estate fraud, the absence of closing documents is a significant red flag. Closing documents are essential in any property transaction, serving to confirm the terms of the agreement, provide proof of ownership, and protect all parties involved. If a client is unable to provide these vital documents, it raises concerns about the legitimacy of the transaction. It may suggest that the deal is not being conducted through proper legal channels, making it easier for fraudulent activities to occur. Therefore, the lack of closing documents can signal that the transaction is suspicious and may indicate an attempt at real estate fraud.

The other points may not inherently indicate fraud. For instance, clients may receive multiple mortgage offers as part of comparing rates or terms, and paying deposits to agents is a common practice in the industry, often required to secure a property. Conducting a land title search is also a routine and advisable step for buyers to ensure clear ownership. While these behaviors merit attention, they are part of standard real estate procedures and do not in themselves indicate fraudulent activity.