The real estate market in British Columbia is thriving, attracting buyers, sellers, and investors. However, with high property values and competitive demand, scammers also see opportunities to exploit unsuspecting individuals. Whether you’re a realtor guiding clients or a buyer navigating the process, staying informed about common scams can help prevent financial losses and legal complications.
This article outlines key real estate scams in BC, how to recognize red flags, and steps to protect yourself from fraud.
1. Fake Listings and Rental Scams
Scammers often copy legitimate property listings from real estate websites and post them on platforms like Craigslist or Facebook Marketplace, claiming to be the owner or agent. In rental scams, fraudsters ask for a deposit upfront before disappearing. For property sales, they may deceive buyers into paying for non-existent properties.
Red Flags to Watch For:
- The price seems too good to be true compared to market rates.
- The “seller” or “landlord” refuses to meet in person or show the property.
- You’re asked to send money upfront before viewing the home.
- They pressure you to act quickly or offer unrealistic discounts for fast payment.
How to Protect Yourself:
✅ Search the BC Land Title and Survey Authority (LTSA) to confirm property ownership.
✅ Work with a licensed real estate agent to verify listings.
✅ Never send money before seeing a property or signing legal contracts.
✅ If you spot a fraudulent listing, report it to the platform and local authorities.
2. Title Fraud (Property Title Theft)
Title fraud occurs when criminals steal a homeowner’s identity, forge property ownership documents, and illegally transfer the title. Scammers then take out a mortgage against the home or attempt to sell it without the real owner’s knowledge.
Red Flags to Watch For:
- Unexpected mortgage statements or legal notices regarding property transactions you didn’t authorize.
- Someone posing as the homeowner to sell or refinance a property.
- Changes to your property title that you did not initiate.
How to Protect Yourself:
✅ Check your title through the BC Land Title and Survey Authority (LTSA) periodically.
✅ Invest in title insurance, which protects against fraudulent ownership transfers.
✅ Use two-factor authentication and secure passwords for financial accounts to prevent identity theft.
3. Mortgage Fraud
Mortgage fraud can occur when buyers falsify income documents, use stolen identities to obtain loans, or work with fraudulent mortgage brokers offering “easy approvals” in exchange for fees.
Red Flags to Watch For:
- Mortgage brokers promising “guaranteed approval” without verifying financial details.
- Requests to fabricate income or employment documents.
- Suspicious third-party offers to secure financing outside of traditional banks.
How to Protect Yourself:
✅ Work with trusted, licensed mortgage brokers verified by the BC Financial Services Authority (BCFSA).
✅ Never sign blank documents or provide financial details to unverified parties.
✅ If a financing offer seems too good to be true, seek a second opinion from a reputable institution.
4. Deposit and Wire Transfer Fraud
Scammers may impersonate real estate professionals, lawyers, or financial institutions, tricking buyers into transferring deposits or closing funds into fraudulent accounts.
Red Flags to Watch For:
- Urgent or last-minute changes in payment instructions.
- Emails that appear to be from your realtor or lawyer but have slightly altered email addresses.
- Requests to wire funds to unknown or offshore accounts.
How to Protect Yourself:
✅ Always verify payment details directly with your lawyer, real estate agent, or bank via phone or in person.
✅ Do not trust email instructions alone—scammers often spoof addresses to appear legitimate.
✅ Double-check account numbers before making any wire transfers.
5. Unlicensed or Fake Real Estate Agents
Some fraudsters pose as real estate agents, collecting deposits or fees without being licensed to operate. They may claim to represent legitimate brokerages but lack the credentials to handle transactions legally.
Red Flags to Watch For:
- The agent does not appear on the BC Financial Services Authority (BCFSA) registry.
- They pressure you into signing contracts quickly without proper explanations.
- They request direct payments to personal accounts instead of brokerage trust accounts.
How to Protect Yourself:
✅ Verify an agent’s credentials through the BC Financial Services Authority (BCFSA) license search.
✅ Ensure all payments go through a licensed brokerage, not an individual’s personal account.
✅ Be cautious of agents who avoid written contracts or provide vague terms.
6. Fraudulent House Flipping & Investment Schemes
Some scammers promote high-return investment opportunities or property flipping deals that do not exist. They lure investors with promises of quick profits, only to disappear with the funds.
Red Flags to Watch For:
- Unregistered investment companies offering guaranteed returns.
- Promoters pressuring you to invest quickly to “secure a deal.”
- Lack of clear documentation or property ownership proof.
How to Protect Yourself:
✅ Always research investment companies and verify their registration with the BC Securities Commission.
✅ Request legal documentation for any property investment deal.
✅ If uncertain, consult a real estate lawyer before making financial commitments.
Final Thoughts: Stay Vigilant and Informed
Real estate fraud can have devastating financial consequences, but awareness is the best defense. Whether you’re a buyer, seller, or realtor, always conduct due diligence before making transactions.
✅ Verify credentials of agents, lenders, and brokers.
✅ Check property ownership through official BC records.
✅ Never send money upfront without verifying details in person.
✅ Report suspicious activity to the BC Financial Services Authority (BCFSA) or local law enforcement.
By recognizing red flags and taking preventative measures, you can confidently navigate the BC real estate market while safeguarding your investment.
For more insights on buying, selling, and protecting yourself in BC’s real estate market, visit HouseByMario.com.
