In recent months, there has been an alarming increase in incidents all across the country involving the listing and sale of vacant land and properties that are free of mortgage liens. These scams involve bad actors posing as owners of these vacant lots or properties. REALTORS® in the Greater Nashville area have recently seen this issue locally.
Criminals are posing as real property owners and through a series of impersonations are negotiating the sale of properties, which are vacant, or lien free.
The Scheme:
- The criminal searches public records to identify real estate that is free of mortgage or other liens. These often include vacant lots or rental properties. The identity of the landowner is also obtained through this public records search.
- The criminal poses as the property owner and contacts a REALTOR® to list the targeted property for sale and requests it is listed below the current market value to generate immediate interest.
- The criminal, posing as the property owner, refuses to sign closing documents in person and requests a remote notary signing.
- The criminal (or co-conspirator) also impersonates the notary and provides falsified documents to a title company or closing attorney.
- Title company or closing company unwittingly transfers the closing proceeds to the criminal.
- The fraud is typically not discovered until the time of recording of transferring documents with the applicable county.
- All communication is electronic, not in person.
How to Prevent:
- Independently search for the identity and a recent picture of the seller.
- Request an in-person or virtual meeting, to see their government-issued identification.
- Be on alert with a seller accepting an offer price below market value in exchange for the buyer paying cash and closing quickly.
- Never allow a seller to arrange their own notary closing. Use a trusted title company or closing attorney to coordinate the exchange of closing documents and funds.
For a copy of the U.S. Secret Service-issued advisory click HERE.
