Fraud Alerts and Prevention Tips in Real Estate

Unfortunately, fraudsters attempt to steal personal information and money through real estate transactions. Knowing how real estate agents, customers, and clients can be targeted is a way to prevent this from happening.

Vacant land fraud is a growing issue in real estate, where scammers pose as property owners to fraudulently sell or transfer ownership of vacant land. As a real estate agent, you can implement the following strategies to prevent vacant land fraud:

1. Verify Ownership Thoroughly

Check government records: Cross-check property ownership records with the county assessor’s office and ensure details match the seller’s claims.
Request original documents: Ask for a copy of the tax bills and photo identification to verify name and address of the person you are communicating with.
Send a Property Owner Verification Letter: Write a letter to the owner of record using the mailing address for the tax bills. From eriecountypa.gov this information can be found at the “Owner” tab with a paid subscription.

2. Conduct In-Person Meetings

Insist on meeting the seller in person or via a live video call to confirm their identity.
Be cautious if the seller refuses to meet or insists on remote transactions.

3. Use Identity Verification Tools

Utilize third-party identity verification services to confirm the seller’s identity.

4. Monitor Red Flags

Urgency to sell: Fraudsters often pressure for a quick sale with cash-only deals.
Unusual communication: Be wary if a seller only communicates via email or refuses to provide phone contact details.
Inconsistent signatures: Compare signatures on different documents for discrepancies.

5. Conduct Extra Due Diligence on Remote Sellers

If the seller claims to be out of state or out of the country, verify their address history and request additional documentation.
Any claims of being unavailable due to illness are a Red Flag.

6. Educate Clients and Colleagues

Inform buyers, sellers, and agents about vacant land fraud risks.

7. Work with Trusted Title Companies

Partner with reputable title company that follow strict fraud prevention protocols.
Select Settlement, Inc. now sends a Property Owner Notification Letter to all vacant land owners whether we represent the buyer or seller as a part of our protocols as there is an increase in this type of fraud in our area.

8. Report Suspicious Activity

If you suspect fraud, alert all parties involved immediately.
Consider flagging the property with the local real estate board.
The true property owners should alert authorities as they may have a case of identity theft.

By staying vigilant and implementing these strategies, you can reduce the risk of vacant land fraud and protect your clients and business.