When Luxury Real Estate Meets Real-Life Crime: The Scams You Won’t Believe Are Happening in NJ

Since 2020, I’ve experienced more real estate fraud in the New Jersey luxury market than I ever thought possible.
We’re talking pathological liars, professional con artists, and full-on criminals.
The crazy part? I still can’t figure out what some of them thought would actually happen.

I sell luxury homes and waterfront mansions across Monmouth County — Colts Neck, Rumson, Holmdel, Red Bank — and these scams are happening right here, in our backyard.
Here’s what they look like, how to spot them, and how to protect yourself.

The Ghost Seller

It starts like every agent’s dream.
A “seller” calls out of nowhere about listing a luxury property or vacant lot. They’re out of town but seem credible, motivated, and ready to list fast.

They say things like:

“We decided not to build.”
“My business is taking me out of state.”
“I need the capital for another investment.”

Then comes the hook:

“If you don’t want to list it, I’ll just call someone else.”

Flattered and rushed, the agent agrees. The property hits the MLS.
Everything looks normal — until closing day, when the proceeds are diverted to a fake title company controlled by the scammer.
Or worse, the real owner calls, furious their home is listed without their knowledge.

Red Flags

• Refusal to meet or video chat.

• Slightly off driver’s license or deed.

• Vacant, mortgage-free property.

• Pressure to “list today.”

Protect Yourself

• Meet the seller in person or on live video.

• Verify ID and ownership with county records.

• Trust your gut — and don’t let flattery cloud your judgment.

The Rent & Run

Imagine paying your first month’s rent and security deposit — and never getting the keys.

This one happens constantly.
Scammers clone real listings from Zillow or Realtor.com and repost them on Craigslist at unbeatable prices.
They meet you at the property, say they’re “locked out,” and ask for a deposit to “hold it.”

You pay. They vanish.

Red Flags

• No interior showing.

• Urgency: “Wire now or lose it.”

• Cash/Zelle/Venmo payments.

• Lease looks suspicious.

• Listing photos match other sites.

Protect Yourself

• Always see the interior first.

• Verify the true owner via public tax records.

• Never pay cash or wire strangers.

• No signed lease + no keys = no payment.

• Use licensed NJ Realtors and verified property managers.

If you’ve already been scammed:
File a police report, contact your bank, save all communications, and alert the NJ Attorney General’s office.

The Deed Deceiver

This one’s the most sophisticated — and the most dangerous.

A “buyer” shows up polished and professional.
They have pre-approval letters, attorneys, and inspectors. They act legit.
But their deposit never hits escrow.
Their inspectors later reveal they were never paid.

The truth?
They’re not trying to buy the home — they’re trying to steal its equity.

They gather everything during the process: contracts, inspection reports, title data, the seller’s name.
Then they forge ownership or apply for a fraudulent HELOC, using your property as collateral.
Once the funds clear, they disappear — and you’re left proving your home was stolen on paper.

Red Flags

• Deposit “delays” with excuses.

• Buyer’s agent doesn’t know them well.

• Inspectors unpaid.

• Buyer is overly agreeable and wants a fast close.

My Personal Experiences

The first was a buyer in Colts Neck. In hindsight we reviewed their proof of funds and although expertly manufactured, there was a slight difference in fonts and sizing on their funds letter. The buyer’s agent did not know the client well. The client seemed an odd match for the property. While we can’t judge books by their cover or discriminate, this buyer didn’t drive a car, dress, or behave in accordance with someone you might have thought would be buying a 10,000sf estate. The deposit didn’t show up in time. The inspectors all revealed they never got paid. When the deposit was late, we began turning over every rock and these facts were revealed. Once we demanded the deposit and notified the buyer they were in breach of contract, they stopped communicating and disappeared.

The next time, just after the California wildfires of 2024 a bi-coastal buyer presented himself on a property on the Manasquan River in Wall Township. The buyer toured the property with his Realtor and me via FaceTime. He never visited the property, not prior to offering, not for his inspections, never. He was amicable during the attorney review process. Inspections were performed with his agent covering for his absence. When the inspection requests weren’t requested prior to the deadline, which coincided with the deposit deadline, the fraud unraveled. “My money is tied up in a trust that I am the beneficiary, but my mom died earlier this year, and its just taking me longer than I thought to access the money.” A week or so of piecing together details only lead to dead ends. Again, a letter notifying this buyer they were in breach of contract, then a dead deal. Wasted time. Wasted effort. Time to start over again.

Most recently this scam was perpetrated on clients of mine in Colts Neck. This one was even harder to sniff out, but still has the same red flags. A real physical buyer. He looks the part. He runs a hedge fund. His agent doesn’t know him, but the agent who referred the client to her knows him. OK, this does’t sound “off”. He negotiates. He pushes back during attorney review. This definitely didn’t feel “too easy”. Because he wanted to close within 30 days, the deadline for the deposit coincided again with the inspections. He physically showed up for the inspections. Where were the red flags? The inspection deadline passed without any formal requests. RED FLAG. The deposit didn’t arrive. RED FLAG. We got a song and dance that the deposit was delayed due to logistical issues with the wire. Two weeks passed with misdirections related to the deposit and inspections. We let it slide, hoping it would all work itself out in time for the closing. The buyers inspector then called me, the listing agent, asking if anything was “off” because he never got paid. RED FLAG. An array of other nonsense including packages getting delivered to the house prior to closing, a desire to switch from cash to a mortgage, other excuses of why the buyer didn’t have the cash to close which ranged from buying a private jet on a whim earlier in the week, stock sales that were delayed through a clearinghouse that wouldn’t release the proceeds, we filed “time of essence” allowing the buyer 10 days to close before being liable for seller damages. The stories and excuses continued literally until the 11th hour of that 10th day, but in the end, the buyer did not and could not perform to close.

The stress this exerts on all parties, but namely the emotional toil this exerted on the sellers, who physically moved out of the property, is inhumane. The amount of time and effort wasted by all professionals involved is beyond inconsiderate. Here are the prevention strategies I have formulated…

Prevention Strategies

For Agents:

• Verify deposits directly — don’t take “it’s coming” as an answer.

• Confirm inspector payments.

• Be cautious with out-of-town buyers.

For Sellers & Attorneys:

• No inspections before deposit clears.

• Request proof of wire transfer.

• Limit sensitive info shared early.

• Set up county title alerts and consider title theft insurance.

For Title Companies:

• Run pre-closing title updates.

• Use secure notarization platforms with verified IDs.

Final Thoughts

I’ve seen just about everything in NJ luxury real estate, but these scams take it to another level.
They waste time, destroy trust, and emotionally drain homeowners who’ve already packed up their lives expecting to close.

I’m not sharing this as a victim — I’m sharing it because awareness is the best defense.
There’s not nearly enough public education on this, and if this article helps one person catch a red flag early, it’s worth every word.

If you found this useful, share it with friends, family, or anyone buying or selling in the Monmouth County luxury market.
Because in real estate — especially when the price tag has commas — if it feels too good to be true, it probably is.