How to Spot a Bad Home Buyer in Florida: Red Flags, Foreclosure Rescue Rules, and Simple Checks

Most buyers are honest. But a home is likely your biggest asset, and some people take advantage of owners under stress. That includes owners facing foreclosure, an inherited home, or a home far away. We would rather you check us, and every buyer, than trust anyone blindly. This guide shows the red flags, the Florida rules that protect you, and the simple checks anyone can do.

Red Flags to Watch For

• They ask you for money. An application fee, a processing fee, or a payment to “stop the foreclosure.” Real buyers pay you, not the other way around.
• They want a deed before closing. Any request to sign a quitclaim deed or other deed outside of a title company closing is a serious warning sign.
• No title company, or only theirs. They want to close “in house,” or the title company you cannot find on your own.
• Pressure to sign today. A good offer will still be good after you read it and ask questions.
• Big promises. Guarantees that they can save your home, fix your credit, or close on a date before they have seen anything.
• Nothing in writing. Verbal promises about price, repairs, payments, or moving dates.
• Blank spaces. Never sign a contract with blanks they will “fill in later.”
• New wire instructions by email. This is a classic scam.
• A company that does not check out. Not on Sunbiz, inactive, or with a name that does not match the contract.

Florida’s Foreclosure Rescue Law: Statute 501.1377

If your home has a recorded notice of a foreclosure case (a lis pendens), Florida Statute 501.1377 adds protections.

• No upfront fees for rescue services. A foreclosure rescue consultant may not collect a fee before completing all the services in the written agreement, and must have a written agreement in the first place.
• A right to cancel. In a foreclosure rescue transaction, where you transfer the home but keep a right to rent or buy it back, you may cancel without penalty until 5 p.m. on the 3rd business day after signing.
• Buy back rules. If you have an option to buy the home back, the buyer must verify that you can reasonably afford the payments. The buyer must also take on or pay off the foreclosed loan and certain other liens.
• Penalties. A violation is an unfair and deceptive trade practice under Florida law, with a penalty of up to $15,000 per violation.

Be very careful with any deal where you sign over the deed but are told you can “stay and buy it back later.” Have a Florida attorney review it first. Our guide for owners behind on the mortgage covers safer options.

Simple Checks Anyone Can Do

Check the company on Sunbiz

The Florida Division of Corporations runs Sunbiz. You can search by company name, by officer or registered agent, or by tax ID. Make sure the company is active and that the name matches your contract exactly.

Check licenses

If a real estate agent is involved, you can verify the license on the Florida DBPR website. Title insurance agents are licensed by the Florida Department of Financial Services. Florida Statute 626.8417 says a person may not act as a title insurance agent without a license, with exemptions such as Florida attorneys.

Verify the title company yourself

Look up the title company’s phone number on your own and call to confirm your file is open. Do not rely only on a number in an email.

Search the name

Look for complaints, court cases, and how long the company has been around. Ask for references you can call.

Never Sign a Quitclaim to an Unknown Buyer

A quitclaim deed hands over whatever interest you have in the property. It does not pay off your mortgage, and it does not take your name off the loan. If you sign one to a stranger, you could lose the house and still owe the bank. Deeds should be signed at closing, through a licensed title company or attorney, at the same time the money changes hands.

Protect Against Deed Fraud

Deed fraud is when someone records a fake deed to steal a property, often vacant land or a home where the owner lives far away. Many Florida county clerks offer free alerts.

• The Miami-Dade Clerk’s free Property Fraud Alert emails you within 24 hours when a deed is recorded on your folio number.
• The Manatee County Clerk offers free alerts when a matching document is recorded. It notes that alerts do not prevent fraud, and that the clerk cannot remove a fraudulent document without a court order.

Search your county clerk’s website for “property fraud alert.” If you get an alert you do not recognize, call a Florida attorney and the clerk right away.

Watch for Wire Fraud

The FBI warns about scams where a message that looks like it is from a title company sends fake wire instructions. Its advice: verify any payment request or change in account numbers by calling the person, using a number you know is real. If you are a victim, call your bank right away and report it at ic3.gov.

Honest Questions a Good Buyer Will Answer

• Which title company will close, and can I choose one?
• Where is the earnest money held?
• Will you buy the home yourself, or might you assign the contract to another buyer?
• If this is a terms deal, what happens to my loan, and who checks that payments are made?
• What can let you cancel, and what happens to the deposit if you do?

Inspection periods and assignments are normal parts of many deals. A good buyer explains them up front. If a buyer will not answer these questions in writing, keep looking. For a refresher on the words, see our seller glossary.

How HOMKEYS Works

HOMKEYS LLC is a Florida company based in Brickell, Miami, that buys homes across the state. We never charge sellers a fee to make an offer, and we never ask you to sign a deed outside of a closing. Every closing goes through a licensed Florida title company. Depending on the home, we may offer cash as is, a purchase subject to your existing mortgage, seller financing, or a 1% listing through our licensed Florida real estate partner. You are welcome to look us up, call the title company yourself, and have your attorney review anything we send.

Subject to qualification, property inspection, and transaction terms.

We buy in many areas, including Pensacola, Lake City, Port Charlotte, and Kissimmee. Share a few details about your home or call (305) 914-4191.

Frequently Asked Questions

Not legal advice. This guide is general information about Florida home sales. Laws change and every situation is different. Talk with a Florida attorney, tax professional, or insurance professional about your own case before you sign anything.

⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal or tax advice. Talk with a Florida real estate attorney or tax professional about your situation.