Cash Buyer Scams San Diego: Complete Protection Guide 2025

Introduction

If you're considering selling to a cash home buyer in San Diego County—especially if you own vacant land or a vacation home—you need to know about a dangerous fraud scheme targeting homeowners right now. On November 21, 2025, the San Diego Association of REALTORS (SDAR) issued an urgent alert about criminals impersonating property owners to fraudulently list and sell homes.

According to SDAR, "multiple REALTORS in different regions of the county were contacted by the same impersonator" seeking quick, underpriced sales. The association's president, Chris Anderson, along with San Diego Tax Assessor Jordan Marks, went public with warnings after discovering the scope of this scheme.

For homeowners considering legitimate cash offers—whether due to selling inherited property, avoiding foreclosure, relocation, or divorce—understanding the difference between fraudulent operators and trustworthy cash home buyers has never been more critical. This article breaks down exactly how the scam works, the red flags to watch for, and how to verify you're working with a legitimate buyer.

What Is Homeowner Impersonation Fraud?

Homeowner impersonation fraud, also called seller impersonation fraud, occurs when criminals pose as legitimate property owners to list and sell real estate they don't own. The San Diego County District Attorney's Real Estate Fraud Unit reports seeing "one or two of these types of real estate scams every month," according to Deputy District Attorney John Dunn.

How the Scam Works

The fraud typically follows this pattern:

1. Target Selection: Scammers identify vulnerable properties—usually vacant land, vacation rentals, or mortgage-free homes where the owner lives out of state.
2. Identity Theft: Fraudsters obtain the property owner's personal information, including:
   • Full legal name
   • Spouse's name
   • Current address (even if out of state)
   • Property parcel number
   • Tax records
3. Fake Documentation: The impersonator creates:
   • Fraudulent email accounts using the owner's name
   • Forged identification documents
   • Fake notary signatures
   • Counterfeit power of attorney documents
4. Below-Market Listings: The property is listed at a dramatically reduced price to attract quick cash buyers. One documented case involved listing a San Diego property worth over $2 million for only $150,000—a 92.5% discount that should immediately raise suspicions.
5. Pressure for Speed: Scammers push for rapid closings, claiming they're out of the country, need immediate funds, or have a family emergency.
6. Disappeared Funds: If the fraud succeeds before detection, the criminals disappear with the buyer's money, leaving both the actual owner and the buyer in legal turmoil.

Real San Diego Cases

One Campo couple, Wayne and Sheryl Harpel, discovered their 10-acre vacant land parcel had been fraudulently listed for sale only when a real estate agent contacted them to verify the listing. They had never authorized any sale.

SDAR's alert came after pattern recognition—the same impersonator contacted multiple realtors across different San Diego regions, providing legitimate owner information but requesting suspiciously quick, low-priced cash sales.

Red Flags: How to Spot a Fraudulent Cash Buyer

Whether you're selling your home or simply monitoring your property holdings, watch for these warning signs:

1. Requests for Upfront Fees

Red Flag: Any "cash home buyer" asking for application fees, processing fees, administrative costs, or deposits before purchase.

Legitimate Practice: Legitimate cash home buyers in San Diego never charge sellers fees. They cover their own evaluation, inspection, and due diligence costs. If someone asks you to pay anything upfront, it's a scam.

2. High-Pressure Tactics

Red Flag: Statements like "This offer expires in one hour" or "Sign now or we'll move to the next property."

Legitimate Practice: Reputable cash buyers provide written offers and allow you reasonable time to review terms, consult with family, and have an attorney examine the contract. While cash sales move faster than traditional financing (7-14 days vs. 30-45 days), legitimate buyers don't create artificial urgency.

3. No Proof of Funds

Red Flag: Any cash buyer reluctant to provide bank statements or official proof-of-funds letters from financial institutions.

Legitimate Practice: Real cash home buyers readily provide dated proof-of-funds letters from their bank or financial institution. Under California law, cash buyers must provide written verification of funds within seven days of contract acceptance, or the seller may cancel the agreement.

4. Missing Online Presence

Red Flag: Cash buyers with no website, no social media profiles, no Google reviews, and no Better Business Bureau rating.

Legitimate Practice: Established cash buying companies maintain professional websites with physical addresses, phone numbers, licensing information, client testimonials, and transparent processes. You should be able to verify their business registration with the California Secretary of State.

5. Unusual Communication Methods

Red Flag: Using only personal email accounts (Gmail, Yahoo), refusing video calls, claiming to be out of the country, or conducting all business through intermediaries.

Legitimate Practice: Professional buyers use business email addresses, maintain local offices (or clear virtual office arrangements), and meet in person or via verified video calls. They have licensed real estate professionals or attorneys representing them.

6. Wholesaling Without Disclosure

Red Flag: Contract language about "assigning" the agreement to another party, with escape clauses that allow the buyer to cancel without penalty.

Legitimate Practice: Legitimate cash buyers intend to purchase your property directly. While wholesaling is legal, ethical wholesalers disclose their intent upfront. Be suspicious of buyers who sign contracts but never actually complete purchases.

7. Avoiding Licensed Escrow

Red Flag: Suggesting you don't need escrow, offering to handle the transaction privately, or recommending an unlicensed escrow service.

Legitimate Practice: California law requires licensed escrow agents, attorneys, or title companies to handle real estate transactions. Legitimate cash buyers insist on proper escrow to protect both parties.

What Legitimate Cash Buyers Do

Understanding how reputable cash home buyers operate helps you distinguish professionals from fraudsters. Here's what you should expect from companies like San Diego Fast Cash Home Buyer:

1. Transparent Evaluation Process

What Happens: The buyer requests a property walkthrough (in person or via video for out-of-state owners), asks about property condition, reviews comparable sales, and explains their valuation method.

Your Protection: You're never pressured to allow access, and you can have a trusted friend, family member, or attorney present during evaluations.

2. Written Offers with Clear Terms

What Happens: You receive a formal purchase agreement specifying:

• Exact purchase price
• Closing timeline (typically 7-14 days)
• Any contingencies (usually minimal or none)
• Proof of funds attached
• Escrow company information
• Who pays closing costs

Your Protection: You have time to review the offer. There's no penalty for declining or negotiating terms.

3. Licensed Escrow Services

What Happens: The buyer opens escrow with a California-licensed escrow company or title company that you can verify independently.

Your Protection: The escrow holder:

• Maintains neutral third-party status
• Holds funds until all conditions are met
• Ensures proper title transfer
• Handles all legal documentation
• Disburses funds only after title clearance

4. Verifiable Proof of Funds

What Happens: The buyer provides an official, dated proof-of-funds letter from a recognizable financial institution showing they have liquid assets to complete the purchase.

Your Protection: You can (and should) contact the issuing bank directly to verify authenticity. Look for:

• Official bank letterhead
• Bank contact information
• Account numbers (partially redacted for security)
• Verification that funds are liquid and available
• Bank officer's signature

5. Professional References

What Happens: Legitimate buyers provide:

• Better Business Bureau profile
• California business license number
• Attorney contact information
• Recent client references
• Professional memberships (if applicable)

6. No Upfront Costs

What Happens: The buyer covers all evaluation costs, and you pay nothing until closing (and often, legitimate cash buyers cover your closing costs too).

Your Protection: Never wire money, pay fees, or provide financial information to secure a cash offer. These are always scam indicators.

How to Verify a Cash Buyer Is Legitimate

Before accepting any cash offer on your San Diego property, follow these verification steps:

Step 1: Check Business Registration

Visit the California Secretary of State's business search at bizfilesonline.sos.ca.gov and verify:

• The company is registered to do business in California
• Registration is current and active
• The business address matches what you were given
• The entity type (LLC, Corporation, etc.)

Step 2: Verify Real Estate Licensing

If the buyer employs real estate agents or brokers, verify their licenses at the California Department of Real Estate's license lookup.

Step 3: Review Better Business Bureau Profile

Search the BBB at www.bbb.org for business rating, length of time in business, complaint history, and customer reviews.

Step 4: Verify Proof of Funds Independently

Don't just accept the proof-of-funds letter at face value. Call the issuing bank directly using a phone number you look up independently and verify the letter's authenticity.

Step 5: Confirm Escrow Company Legitimacy

Verify the proposed escrow company is licensed with the California Department of Financial Protection and Innovation.

Step 6: Consult with Professionals

Before signing any agreement, have a California-licensed real estate attorney review the purchase contract and consider getting an independent property appraisal.

Consumer Protection Measures in California

Title Alert Service (Free)

San Diego County offers a free Title Alert service that proactively notifies you if any documents are recorded using your name or property parcel number. This early warning system can detect fraudulent activity before it progresses.

How to Enroll: Visit the San Diego County Owner Alert Service and enter your property information.

Reporting Fraud

If you suspect homeowner impersonation fraud:

1. Contact local law enforcement
2. Report to the District Attorney's Real Estate Fraud Unit
3. Notify SDAR at (858) 715-8000
4. File with California DRE at dre.ca.gov
5. Alert the title company involved

Quick Facts: Cash Home Sales in San Diego

San Diego Neighborhoods Most Affected

While seller impersonation fraud can target any property, certain San Diego areas see higher risk due to property characteristics:

High-Value Coastal Areas

Pacific Beach, La Jolla, and Del Mar: With median home prices ranging from $1.3 million to $2.2 million, these neighborhoods attract sophisticated fraudsters who can steal significant amounts. Vacation homes and investment properties in these areas are particular targets.

Vacant Land in Outlying Areas

Campo, Alpine, and Ramona: Rural properties with absentee owners are extremely vulnerable. The Wayne and Sheryl Harpel case involved a 10-acre Campo parcel—exactly the type of property scammers prefer.

Investment Property Hotspots

Chula Vista, National City, and El Cajon: These areas have many investment properties and rental units where owners may not monitor listing activity as closely.

Frequently Asked Questions

How can I tell if a cash buyer is legitimate or a scammer?

Legitimate cash buyers provide verifiable proof of funds, use licensed escrow services, never charge upfront fees, maintain professional websites and business registrations, and allow you time to review offers with an attorney. Scammers pressure you for quick decisions, ask for fees, avoid licensed escrow, and can't provide verified proof of funds from recognized financial institutions.

What is seller impersonation fraud and how does it work?

Seller impersonation fraud occurs when criminals pose as property owners to fraudulently list and sell real estate they don't own. They obtain the owner's personal information through public records, create fake identification and notary documents, list the property well below market value, and attempt to complete a quick cash sale before the actual owner discovers the fraud. San Diego County sees 1-2 of these cases monthly according to the District Attorney's office.

Do I have a 3-day right to cancel a cash home sale in California?

No, there is no automatic 3-day cancellation right for California real estate purchase agreements. The federal cooling-off rule doesn't apply to real estate transactions. However, you do have limited cancellation rights related to disclosure documents—three days if delivered in person or five days if mailed when you receive a delayed or materially amended Transfer Disclosure Statement (Civil Code § 1102.3(b)).

What proof of funds should a legitimate cash buyer provide?

A legitimate cash buyer provides an official, dated proof-of-funds letter on bank letterhead that includes the financial institution's contact information, confirmation of available liquid funds sufficient to complete the purchase, and a bank officer's signature. You should independently verify this letter by calling the bank directly using a phone number you look up yourself (not one provided on the letter).

How can I protect my San Diego property from impersonation fraud?

Enroll in San Diego County's free Title Alert service at www.sdarcc.gov to receive immediate notifications of any documents recorded using your name or parcel number. Additionally, monitor your property's status on major real estate listing sites, maintain current contact information with your county tax assessor, and periodically check public records for unauthorized activity.

What should I do if I discover my property has been fraudulently listed?

Immediately contact local law enforcement to file a report, notify the San Diego County District Attorney's Real Estate Fraud Unit, contact the listing real estate brokerage to demand removal, alert the title company if escrow has been opened, and file a complaint with the California Department of Real Estate if licensed professionals are involved. Acting quickly can prevent the fraud from being completed.

How long does a legitimate cash home sale take in San Diego?

Legitimate cash sales typically close in 7-14 days, significantly faster than the 30-45 day standard for financed purchases. However, this timeline still allows for proper escrow procedures, title clearance, and verification of funds. Be suspicious of buyers demanding closings in 2-3 days, as this doesn't allow time for proper due diligence and fund clearance requirements under California escrow law.

Conclusion: Protecting Yourself While Getting a Fair Cash Offer

The SDAR alert about homeowner impersonation fraud doesn't mean you should avoid legitimate cash buyers—it means you need to verify who you're working with. Thousands of San Diego homeowners successfully sell to cash buyers every year when facing inheritance situations, foreclosure, relocation, divorce, or property condition issues that make traditional listings impractical.

The key is knowing the difference. Legitimate cash buyers like San Diego Fast Cash Home Buyer operate transparently, use licensed escrow, provide verifiable proof of funds, never charge upfront fees, and give you time to make informed decisions with professional guidance.

Protect yourself by:

• Enrolling in San Diego County's free Title Alert service
• Verifying buyer credentials through California licensing databases
• Insisting on licensed escrow services
• Independently confirming proof of funds
• Consulting with a real estate attorney before signing
• Watching for the red flags outlined in this article

If you're considering a cash sale of your San Diego property, don't let fear of fraud prevent you from exploring legitimate options. Just take the time to verify credentials, ask the right questions, and trust your instincts. If something feels off, it probably is.