How do you know that your seller is the actual property owner?
As GRAR and our friends at CertifID have been reporting since January, there has been a surge in cases of vacant land scams. This is the fastest growing type of fraud in the United States and some of these fraudulent transactions have closed right here in West Michigan. We are also aware of an increasing number of parcels that scammers have attempted to list, but were discovered early on in the process. As of June 27, 2023, there were 1,273 vacant land listings that are active on the MLS in Allegan, Barry, Clinton, Eaton, Ionia, Kent, Montcalm, Muskegon, Newaygo, and Ottawa counties. As unbelievable as it might sound, the odds are increasing that some of these listings are fraudulent and were listed by scammers posing as the true property owner.
If one or more of these listings belong to you, we urge you to ask yourself some important questions:
◦ Is the property owned free and clear?
◦ Have you met the seller in person? If not:
◦ Did the seller express a sense of urgency in selling the property?
◦ Did the seller seem willing to list the property below market value?
◦ Did the seller say why they are selling?
◦ Did the seller express confusion about the selling process?
◦ Does the seller live out of state or claim to be traveling out of state at the moment?
◦ Does the seller want to use their own notary? We have learned that the scammers are now even impersonating notaries w/fake photo ID in the name of a registered notary and fake notary public stamps.
You are also advised to take the following steps to vet the seller on all existing vacant land listings, as well as any potential new vacant land listings.
1. Meet with the seller at the property and ask to see two forms of identity.
2. If the seller is unable or unwilling to meet in person, conduct a recorded video conference and request two forms of identity verification be presented during the session (e.g., driver’s license, passport, etc.).
3. Request a copy of the closing statement and final title policy from the seller’s purchase of the property.
4. Request proof of payment of the most recent property tax bill.
5. Send a letter to the address where the tax bill is being sent via overnight carrier or USPS with signature required. This will confirm the seller’s connection to the property.
If you are a buyer’s agent placing an offer on vacant land, please confirm that the listing agent has performed these tasks and is confident of the seller’s identity. If a fraudulent listing closes, all could be caught in the crosshairs of litigation – the true property owner, the buyer, listing agent/broker, selling agent/broker, title company, the notary who may have been impersonated, and more. If one of your listings reaches the closing table and it is later discovered to be fraudulent, notify your broker and seek legal advice immediately. It’s critical that steps are taken right away to verify that your listings are genuine. If you discover a fraudulent listing (meaning it is active and hasn’t closed), please notify your broker and contact GRAR to provide the property address, seller’s name, and the contact information that was provided to you. We are working directly with CertifID and the United States Secret Service to crack down on these scammers.