Fraudulent Land Listing Resource Page

Fraudulent land listings remain an ongoing issue. This resource page focuses specifically on land listing scams from the listing agent’s perspective and offers guidance to help you get started. When in doubt, consult your broker!

Vacant land scams have become an increasing problem, where potential buyers, property owners and real estate agents are defrauded.

TIPS FROM NAR

🔹Be cautious
🔹Conduct independent research
🔹Avoid having the seller arrange for the notary at closing
🔹Ask the seller to provide a copy of a voided check with a disbursement authorization form
🔹If you suspect that you’re involved in a vacant lot scam, contact law enforcement by filing a complaint at IC3.gov

FRAUD EXAMPLES

SCENARIO ONE

You are a new Listing Agent (LA) for a land lot. Other agents contact you worried if you’ve spoken with the same “owner” about the property. You become suspicious and request a video chat with the owner, but they never respond. This raises concerns that the person may not be the actual owner.

Possible Next Steps

Contact your Broker
Move the listing to TOM and contact Data Integrity for help

SCENARIO TWO

As the Listing Agent for a lot/land listing, you go under contract. When changing the status in Flexmls, the true owner receives a notification and contacts you. They provided proof to the title company that they are the owners and do not wish to sell.

Possible Next Steps:

Contact your Broker
Move the listing to TOM and contact Data Integrity for help

WHAT TO WATCH OUT FOR

🚩 The potential client wants to list the property for significantly below market value.

🚩 The potential client emphasizes an urgency to sell quickly.

🚩 The potential client has a strong preference or requirement for cash.

🚩 The potential client never communicates in person or on video, preferring to text or email.

🚩 The potential client does not want a “For Sale” sign in the yard.

🚩 The potential client claims to be out of the state or country.

🚩 The potential client will only use a remote notary and requests a remote closing.

🚩 The potential client provides incorrect ownership details.

🚩 The potential client refuses to verify their identity.

🚩 The potential client has unusual communication patterns.

BEST PRACTICES

🔷 Exercise due diligence to verify the purported seller is the actual property owner:

Ask for multiple forms of identification.
Request to meet the seller face-to-face. If remote, ask to connect via video.
Ask for proof of ownership of the property.
Ask the potential client about the area around the vacant property to see if they are familiar with it.

A real estate agent showing a piece of vacant land

🔷 Conduct independent research to confirm the correct property owner, such as looking online for a recent photo or speaking to a neighbor.

🔷 Verify the seller’s email and phone number.

🔷 Make sure you or the title company select the remote notary at closing. Additionally, verify the notary’s credentials are active with the state of Arizona.

🔷 Follow brokers’ guidelines for safe listing procedures.

🔷 If you suspect that you are involved in a vacant lot scam:

Contact law enforcement and file a complaint at IC3.gov.
Remove the listing from the MLS and take down any advertisements quickly.

🔷 Public Records Review Monsoon/Curbview Tax:

Review deeds, title history and MLS listings for unusual activity.
Look for recent, unexplained ownership changes or
irregularities in transaction history.

BEST PRACTICES

🔷 Exercise due diligence to verify the purported seller is the actual property owner, for example:

Ask for multiple forms of identification.
Request to meet the seller face-to-face.
Ask for proof of ownership of the property.
Ask the potential client about the area around the vacant property to see if they are familiar with the area.

🔷 Ask the seller for a voided check and a disbursement authorization form; then use a wire verification service to confirm the account information and ownership.

🔷 Conduct independent research to confirm the property owner, such as looking online for a recent photo or speaking to a neighbor.

🔷 Verify the seller’s email and phone number.

🔷 Make sure you or the title company select the remote notary at closing.

🔷 Follow safe listing procedures.

🔷 If you suspect that you are involved in a vacant lot scam:

Contact law enforcement and file a complaint at IC3.gov.
Remove the listing from the MLS and take down any advertisements quickly.

🔷 Public Records Review Monsoon/Curbview Tax:

Review deeds, title history and MLS listings for unusual activity.
Look for recent, unexplained ownership changes or
irregularities in transaction history.

COMMON QUESTIONS

I suspect I’m involved in a vacant lot scam.

The Internet Crime Complaint Center (IC3) website at ic3.gov; and
Local FBI office: To find the local office’s contact information, visit fbi.gov.
Contact your local county recorder to learn more about title deed alerts.

What is title fraud?

Title fraud, or deed theft, is when someone illegally transfers the title or deed of your property without your knowledge, often using forged documents or fake IDs. This may occur with or without a fraud land listing.

What’s the difference between title fraud and deed theft?

They are the same. Title fraud is also known as deed theft. However, in this case, it’s a listing scam. The goal is to convince people to send money to a false escrow account and/or notary for monetary gain.

Does fraudulent listing activity only happen on vacant properties?

No, but vacant properties are the most vulnerable.

Are listing fraud scams a serious issue?

Real estate professionals can play a critical role as the first line of defense—educating clients, spotting red flags and pointing them toward fraud prevention tools. Contact your broker if you have additional concerns.