By hannover-web.com The FBI has reported a remarkable 500% increase in cases of fraud involving impersonation of landowners selling vacant properties over the past four years. They are advising property owners to stay alert and to verify land records to protect themselves from these scams.
In a recent case highlighted by ABC News, real estate agent Lisa Shaw received a phone call last summer from someone attempting to sell a vacant lot in Randolph, New Jersey. The caller claimed to have owned the property for over 25 years and stated that they were looking to sell for a profit amid a booming real estate market, citing their wife’s illness as a reason for needing quick cash. It turned out to be a sophisticated scam. Jim Dennehy, Assistant Director of the FBI in New York, questioned, “Who would expect someone to sell your property right in front of you and deceive everyone involved in the transaction?”
With over two decades of experience in the local real estate market, Shaw asked the caller for verification documents, including the property address and a driver’s license. Unfortunately, those documents were counterfeit, as the real owner of the land actually lives in Texas. Shaw reflected, “Everything seemed to proceed smoothly, with no one suspecting anything, including the lawyers, myself, and the title company.”
Later, when the fraudulent seller inquired about the highest bid, Shaw reported that an offer of $140,000 was on the table. The caller quickly accepted the bid and instructed that the funds be divided into two deposits to different banks. It wasn’t until the second transfer that the title company recognized something was off. By then, the first $70,000 had already been sent, and the fraudulent seller had disappeared. The unwitting buyer is now officially recorded as the new owner of the land, but since the original owner did not authorize the sale, the legitimacy of the ownership remains in limbo. Shaw expressed her astonishment at the cleverness of the scam, stating, “I was truly surprised that someone could be so clever to pull this off.”
The FBI’s report reveals that the rise in land fraud cases underscores the necessity for due diligence among buyers, real estate agents, and title companies. Dennehy stressed that scammers can take advantage of publicly available real estate information to impersonate legitimate landowners.
Emily Bowden, Executive Director of the Sussex County Association of REALTORS, pointed out that vacant land is particularly susceptible to these scams, as not everyone regularly checks on unoccupied properties, and not all landowners live nearby. Derek Doernbach, a real estate agent active at the Jersey Shore, shared an experience of being approached by three individuals claiming to be landowners wanting to sell. He suspected they were part of a scam ring and refused to take on the listings.
He noted that the photos and addresses on the counterfeit sellers’ driver’s licenses matched exactly with those provided to Shaw, suggesting a coordinated effort behind these fraudulent actions.
