Land scams are on the rise, and real estate professionals are increasingly at risk from fraudsters looking to impersonate property owners and sell land they don’t own. These scams can have widespread financial and legal consequences if left unchecked. As fraudulent listings and identity manipulation become more sophisticated, it’s critical for agents to be proactive in verifying the identities of any potential client.
Understanding land scams
At its core, a land scam involves a fraudster posing as the legal owner of a property and attempting to sell it. This impersonation is often coupled with tactics designed to create a sense of urgency—a quick cash deal, a promise of rapid closing or communications that avoid face-to-face meetings. The scammer may use a combination of emails, text messages and forged documents to build trust with agents and potential buyers with the goal of securing funds for a property they have no legal claim to.
Why these scams are so prevalent
- Low-visibility targets: Vacant or underutilized land often lacks the extensive public records and oversight that urban, developed properties have, making it easier for scammers to slip through the cracks.
- Digital listings: Online platforms for property listings have made it easier for fraudsters to create deceptive profiles and post fraudulent ads, often under the guise of “For Sale by Owner” (FSBO).
- Complex verification processes: Traditional methods of verifying land ownership—such as cross-referencing public records—can be time-consuming and it may not be possible to confirm ownership simply by visiting the property and speaking with the resident when the transaction involves a vacant lot or land parcel.
- False identities: Many fraudsters can present fake IDs matching the identity of the property owner in public records, information that can be found by searching online. Many can also present forged and notarized documents.
The importance of due diligence
As fraudulent activity increases and scammers become more sophisticated, it’s more important than ever to perform thorough due diligence prior to meeting with any new client. Agents should not rely solely on initial documents or superficial checks. Instead, a multi-layered verification process is essential:
- Proactively verify identities: Check ownership details through agent safety apps like FOREWARN® to help ensure that the seller’s information aligns with public records.
- Scrutinize communication channels: Be cautious if the contact method seems inconsistent—such as receiving a call or message from an unexpected number or an email address that only loosely resembles what is found on official records.
- Ask the right questions: Engage in conversations with questions that can be independently verified—even a small discrepancy can signal the need for additional authentication.
- Be cautious of urgent requests: Ensure you don’t move so quickly to complete a sale that you overlook due diligence. Many scammers are looking to close a deal quickly, preferring all-cash sales and fully remote transactions. They may also cite several reasons why they cannot meet in person or on video.
Safer Showings, Smarter Engagements
FOREWARN is a Mainstreet member benefit and comes to you at no cost. This safety app is designed to increase safety and efficiency in your business. Instantly pull background checks on prospective clients and keep yourself safe! Meeting new clients and hosting open houses all comes with the job of being a REALTOR® but are you taking the proper steps in making sure you are safe when meeting with new clients? That's where FOREWARN comes into play!
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