As real estate scams continue to rise, it’s more critical than ever to be vigilant. According to the FBI’s Internet Crime Complaint Center, losses from real estate and rental scams surged to over $396 million in 2022. Among the latest schemes, scammers are increasingly targeting vacant land, posing serious risks for buyers, property owners, and real estate professionals alike.

How Vacant Land Scams Work

Fraudsters are using public records to identify vacant parcels of land and properties without mortgages or liens. Once identified, they impersonate the rightful landowner and contact real estate agents to list the property for sale.

Charlie Lee, senior counsel and director of legal affairs at the National Association of Realtors, highlighted this alarming trend in a 2023 "Window to the Law" video. “For the agent, the deal seems too good to pass up,” Lee explains. “The seller is willing to sell below market value, the property generates great interest, and they’ll quickly accept an offer—with a preference for a cash sale.”

The Danger of Title Pirates

Real estate attorney Victor Petrescu has also raised concerns about “title pirates.” These fraudsters use forged or fraudulent deeds to transfer ownership of a property illegally. The scam often goes unnoticed until the funds have been wired, leaving victims with significant financial losses and legal complications.

Protect Yourself from Real Estate Fraud

Whether you're buying, selling, or representing a property, these steps can help safeguard against real estate fraud:

  1. Verify Ownership: Always confirm the identity of the property owner through reliable sources, such as tax records or direct communication with the title company.

  2. Be Wary of Quick Deals: Deals that seem too good to be true often are. Be cautious of sellers who insist on cash transactions or quick closings.

  3. Use Trusted Professionals: Work with reputable real estate agents, attorneys, and title companies to verify all documentation and transactions.

  4. Monitor Public Records: Property owners should regularly check public records to ensure no unauthorized activity has occurred involving their property.

Raising Awareness

As these scams become more elaborate, awareness is key to prevention. Real estate professionals should educate clients about potential risks and implement thorough due diligence processes to identify red flags.

Stay Updated on Real Estate Trends and Safety Tips

As the real estate market evolves, staying informed is your best defense against scams. By understanding these schemes and taking preventive measures, you can protect your investments and transactions.

For further details, read the original article in Realtor Magazine, published on October 23, 2023.