Vacant Land Scam

Ask Phyllis: a blog series of frequently asked real estate questions.

Dear Phyllis:

I have been following your real estate advice for years. I wanted to share a recent experience that I had to warn your readers. At the beginning of the year, I looked for land in Victorville since I have one of my businesses there. I found a property and made an offer. While in escrow, I found a better opportunity and canceled the first deal. I closed escrow on the new property in January and thought I had made a great investment. Fast-forward to April. I received a letter from the Title Company notifying me of the fraudulent purchase. I immediately called their attorney, thinking this had to be a mistake, but unfortunately, it wasn’t.

While unsure who scammed me, I worked through the listing agent, who claimed to know the out-of-state seller personally. The Title Company did reimburse me for the cost of the land, but I’m out $4,000–$5,000 in property taxes and closing costs. In the future, how can this vacant land scam be avoided? — Burned in the High Desert

Dear Burned in the High Desert,

Thank you for sharing your story. I’m so sorry this happened to you. Unfortunately, out-of-area vacant land scams are becoming more common. To protect yourself and others in the future, here are a few key steps every buyer should take:

1. The Seller’s Identity Should be Confirmed

Make sure that the Realtor verifies the “seller” through public records. Then verify the “seller” through a photo ID.

2. Be Leary of DocuSign

The listing agent should confirm the “seller” address noted on public records. Scammers often create fake email addresses and phone numbers. Therefore, contacting the property owner directly using the address listed in public records is essential.

3. Ask Your Agent to Verify Everything

A great Realtor should go beyond surface details. Find out how the listing agent knows the “seller”. Request that title records be checked and ask the Escrow Officer to check signatures if possible.