Beware of the Homeowner Benefit Agreement Real Estate Property Scam circulating nationwide as home owners are duped into fraud contracts.
Officials are warning people about a dangerous property scam that lures homeowners into giving away the liens on their properties in return for an immediate cash reward.
A Florida-based real estate company is promoting a “Homeowner Benefit Agreement,” providing homeowners with up to $5,000 in cash in exchange for the company becoming their exclusive listing agent and obtaining a 3% commission when the homeowner decides to sell their home.
After the contract is signed, the company must submit a memorandum lien to the Recorder’s Office in the county.
The downside is that the agreement stays in effect for four decades but applies to the property, not the homeowner.
If the original homeowner passes away or gifts their property to someone else, the heir or new owner will be held to the same terms in the contract.
This program may be depicted as a listing agreement. However, when looked at more profoundly, it is essentially a loan with an exorbitantly high-interest rate. As a result, states are warning people to be wary of companies that offer real estate services and benefits that seem too good to be true.
How to avoid the Homeowner Benefit Agreement Property Scam
- The Listing is mostly for vacant land, although some cases have empty condos.
- Even if the seller isn’t in your state, they may still say they are from a different country.
- The seller is only willing to sign documents remotely and will not be able to meet up in person.
- The seller usually can’t give comprehensive information about the property, such as club memberships, utilities and water rights charges, HOA dues, and transfer fees.
- The price of the vacant land is significantly lower than the market value.
- The seller is eager to finalize the deal quickly.
- A seller employs aggressive or aloof tactics.
The Real Estate divisions in most states are warning agents to be aware of land-selling scams, so if you are contacted by a seller regarding vacant land or representing a buyer looking at vacant land, please double-check that the sellers own the property.
- Look into the identity of the seller and verify their photo ID
- Research more thoroughly to figure out who owns the land
- Get detailed information about the property by asking specific questions.
You should inform the listing site or brokerage if you find a deceptive listing. Additionally, your state’s Division of Real Estate can be notified about any fraudulent listings found.