One important step buyers and sellers can take to protect themselves is to know the difference between agents who only have a real estate license and those who also carry the trademarked designation of Realtor after their name.

Not every licensed real estate agent is also a Realtor. As the number of home buyers in the United States increases each year, the number of licensed real estate agents has multiplied. In 2003, the California State Department of Real Estate recorded an estimated 297,000 people with real estate licenses in California. By April, the number was up to 385,000. Only roughly a third of them have subscribed to the professional standards and code of ethics that are required to become a Realtor.

Due to an increase in the number of applicants, the Department of Real Estate recently acknowledged difficulties keeping up with the workload. As a result, applicants for real estate licenses may not have been screened thoroughly. Following up on complaints in a timely manner has also been a problem, as reported in the case of the San Jose agent who was still actively involved in the real estate business in spite of several pending complaints.

"In recent years, there has been a surge in workload across the board," explained Tom Poole, spokesman and legislation coordinator for the Department of Real Estate. "The department was also subject to a hiring freeze and had difficulties keeping up with the workload."

For many victims, most often the elderly or disabled homeowners, unscrupulous agents have not only robbed them of their life savings but their hopes and dreams as well. As the home prices in Silicon Valley continue to climb, scam artists are even more likely to prey on unsuspecting buyers or homeowners.

Homeowners not familiar with the intricacies of the current real estate market are a preferred target for con artists. "In a lot of cases, [their] property is worth money, and someone is trying to convert that to cash," said Paul Colin, who heads up the Santa Clara County District Attorney's real estate fraud unit. He advises sellers and buyers to make informed decisions by becoming real estate savvy.

Victims of real estate fraud are further alienated by the difficult and often frustrating procedure involved when filing a complaint with the Department of Real Estate. Local police departments may not be able to help either, and so consumers end up having to consult a lawyer. "Many police officers are not equipped to deal with fraud cases because [these cases] are so complicated," said real estate fraud prosecutor Colin. "We usually work with both an investigator and an attorney when researching our cases."

One important step is involving a Realtor according to Janet Case, executive officer of the Silicon Valley Association of Realtors and the San Mateo County Association of Realtors. The local trade associations represent more than 6,000 members in the industry. "Having a Realtor on your side goes a long way in protecting both parties, buyer and seller, against unethical or even criminal practices," Case said.

One of the most important reasons to hire a Realtor, Case points out, is that members of the Realtor trade associations are bound by strict standards of practice and a Realtor code of ethics. Buyers or sellers should ask a person offering real estate services if they are a Realtor and whether they are a member of the local, state or national Realtors Association.

While the current situation has left consumers frustrated, the California Association of Realtors has announced its intention to sponsor legislation that would help the Department of Real Estate to grow to keep up with the increasing demand for its services.

Until these much-needed changes are made, consumers need to protect themselves against potential scams by picking the right agent, but also by asking the right questions. Helpful resources can be found online. The National Association of Realtors' site at www.realtor.org has a special consumer homepage, and the Department of Real Estate publishes an online bulletin and provides downloadable copies of helpful brochures at www.dre.ca.gov.

"And don't forget one of the best resources of all is your local Realtor," Case said. Members of the nonprofit trade association can participate in continuing education classes and also have access to the latest information on legislation and real estate practices. They must complete a compulsory ethics class in addition to any real estate training and can be held accountable for their actions by the National Association of Realtors and their local association. The National Association of Realtors now boasts more than one million members.

"Reaching the million-member milestone speaks to the value real estate professionals place on belonging to this organization. Realtors stand for professionalism and ethical business practices. We are the national advocates for homeownership, affordable housing and private property rights. Consumers can find a Realtor to fulfill their real estate needs in virtually every neighborhood and community in the nation," said Walt McDonald, president of the national association.