Vacant Land Scams: What They Are & How To Protect Yourself

Whether you own land, or are looking to buy land, read on for some advice on how to spot fraudulent sellers or listings, and protect yourself. 

In today’s world, fraud is regrettably everywhere. The world of Real Estate has not been spared, and the last two years have seen a significant uptick in vacant land scams in Colorado. The good news is that word has caught on about how these scams operate, and Realtor boards and title companies in the High Country are better prepared to prevent them. Whether you own land, or are looking to buy land, read on for some advice on how to spot fraudulent sellers or listings, and protect yourself. 

What Are Vacant Land Scams? 

First up is understanding how exactly these scams work. ‘Land scams’ are when a scammer lists a property they do not own - either with a Realtor or as a For Sale By Owner - in the hopes of selling it through a legitimate, remote closing and collecting the funds. The scammers primarily target vacant, unimproved land, because there’s nothing to inspect, little to no access issues, and these types of property have a higher chance of a ‘clear title’. A ‘clear title’ means that there are no liens against the property (like a mortgage) that would increase the amount of signatures and identity checks needed to successfully close on the sale. 

While remote closings have been a boon to legitimate buyers and sellers in the last few years, fraudsters are able to exploit lax notarization guidelines and the lack of in-person contact to successfully impersonate property owners. Many times, scammers hire Realtors to list the property to add a layer of legitimacy to the scheme. In the worst cases, these fraudulent sales are fully executed - meaning Buyers unwittingly pay the scammer for the property. While the Buyers would receive a deed to the property, once the scam is uncovered, ownership would revert back to the previous owner. 

How Can You Spot A Fraudulent Seller? 

While high tech crimes have become more sophisticated, luckily, most scammers have not. As a Buyer, you will not be able to speak to a Seller directly, but you can ask your buyer’s agent to vet the listing agent’s experiences with the Seller on your behalf.  Here are some telltale signs that a Seller may not be who they say they are. 

• They primarily communicate via email or text. If forced to be on a phone call, they will use bad connections to obscure accents. 
• They use a Google Voice phone number, often out of Los Angeles or New York City. 
• They are in a hurry to sell - watch for listing language like ‘motivated seller’ or ‘priced to sell quickly’! 
• They price the property well below market value to attract Buyers willing to move quickly. If you see land being sold for a price that seems too good to be true, it probably is. 
• There are no 'For Sale' signs on the physical property. 
• They were referred to their listing agents by Realtors in other markets, or via a lead generation website (like Zillow), and their listing agent has never met them in person. Obviously, not all sellers who are introduced to their Realtor in these ways are scam artists, but if other things aren’t adding up, this can be a red flag. 
• They overplay that they are ‘traveling’ to hide the fact that they are based overseas.
• They refuse to use a remote notary they did not choose themselves. 
• When asked, they will not share their photo ID or other identifying documents with Realtors or Title Officers. 

As An Owner Of Vacant Land, How Can You Protect Yourself & Your Property?* 

While there are no guaranteed ways of preventing a land scammer from targeting your property, there are a few things you can do to stay informed and to safeguard your property. 

• One of the easiest things you can do that I recommend to all of our land clients, is to set up a Google alert for your property address. This way, if your property is listed on any MLS or listing site such as Zillow, Redfin, or Trulia, you’ll be one of the first to know. If your address on tax records is different from your informal address (example: vs. 0011 CR 1176 vs. 11 Heeney Road), set up alerts for both. 
• If in the Summit Area, contact each of our local Title Companies to identify yourself and request they keep your property flagged on their internal ‘not selling’ list. 
• Ask your local Realtor to keep an eye out on your behalf. 
• Make sure all of your contact information is up-to-date with the County Assessor. This allows Realtors and Title Officers dealing with a scammer to get in touch with you and verify your identity.
• If you discover your property is listed for sale without your consent, contact the Colorado Bureau of Investigation immediately. You'll find their contact details at the bottom of this post. After reporting to the CBI, we recommend also filing a complaint with the federal IC3 Division. 

How Can Buyers Protect Themselves When Buying Unimproved Land?* 

Luckily for Buyers, this list is pretty short. Lean on your professional advocates! 

• Never, ever buy land without the involvement of a licensed Title Company who is willing and able to insure the Title. 
• Work with a Buyer’s Agent who is experienced in rural, mountain region land sales, as well as familiar with the current land scam trends. 

Lastly, if you believe someone is trying to fraudulently sell your property, or that you have been a victim of a vacant land scam, please alert the Colorado Bureau of Investigation, High Tech Crimes Department - Attn: Traci Dowd | Traci.Dowd@state.co.us |  303-968-5406 Reportwirefraud.com

If you are a victim of a vacant land scam, there are legal remedies but they will likely be time consuming. The mountains are supposed to be an escape from the stress and frenzy of the modern world. With common sense tactics, and by relying on local professionals working in your best interests, we can ensure the land stays that way! 

*Advice is provided as an opinion of the author, and preventative methods are not guaranteed to stop fraud. Please consult your legal representative and local real estate professional to discuss your best course of action if you are concerned about Real Estate fraud.