To distinguish genuine from fake real estate purchase contracts, verify the following: 1) Legal names and addresses of all parties are explicitly stated, 2) Property details (address, parcel number, square footage) are precise and match public records, 3) Contract terms align with local real estate laws and regulations, 4) Signatures are notarized or witnessed as required, and 5) Escrow and closing instructions reference licensed third parties. Authentic contracts include standardized clauses for contingencies (e.g., financing, inspection) and title insurance requirements. Fake contracts often omit critical details, use vague language, or request payments outside established channels.

Authentic real estate contracts are meticulously drafted to protect all parties’ interests, ensuring compliance with federal and state laws. For example, the 2023 National Association of Realtors (NAR) report found that 15% of homebuyers encountered fraudulent contracts in 2022, with 70% of cases involving missing or incorrect property descriptions. Fake contracts frequently exploit buyers’ lack of legal knowledge, such as demanding upfront payments for “processing fees” or “title clearance” without escrow involvement. Data from the American Escrow Association reveals that 30% of real estate fraud cases involve unverified escrow accounts, highlighting the importance of confirming third-party legitimacy. Additionally, the U.S. Department of Housing and Urban Development (HUD) mandates that closing costs must be itemized and approved by both buyer and seller, a common omission in fraudulent documents. Legal discrepancies, such as unregistered agents or non-compliant clauses, further increase risks. By prioritizing transparency, standardized language, and verified third parties, buyers can mitigate fraud risks and ensure a legitimate transaction.