Fraudulent Land Sale Red Flags
We wanted to take this opportunity to remind you to remain vigilant and continue to be on guard against the ever-increasing attempts of unscrupulous individuals to commit fraudulent land sales. These scams can involve the sale of a house or other types of real property, but often focus on the sale of a vacant lot that is owned free of encumbrances and liens. The “scammer” typically has done online research and is familiar not only with the property itself but with real estate transactions in general. The “Seller” therefore is usually able to discuss the proposed transaction with a high degree of accuracy.
Some common “red flags” to be on the lookout for are listed below.
- Seller purports to be in another state or country.
- Seller is in a rush to close and is willing to sell for a price that seems undervalued.
- Seller seems unconcerned with withholding or closing fees and is only interested in receiving net proceeds as quickly as possible.
- Seller only communicates with parties involved by email.
- Seller provides a reason for limited contact such working as an “offshore engineer” or suffering from a serious medical condition.
- Emails from the Seller contain typographical errors or boilerplate language.
- The email address is suspect (a domain in a foreign country).
- Seller claims questionable need to use a power of attorney and the agent under the power of attorney has never met the seller.
- Signatures of seller and/or notary are suspect.
- Seller is not currently located at the address listed in the county tax records.
- Documents provided by the seller are notarized in a location other than the seller’s purported location.
- Wiring instructions are to a bank in yet another location.
While there may be legitimate explanations for some of the above red flags to occur on a given transaction, if you find yourself questioning even one of them, it is best to take additional measures to ensure that your Seller has a legitimate ownership interest in the property in question.
Always better to be safe than sorry.
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