REAL ESTATE NEWS (Los Angeles, CA) — As we collectively navigate the fast-paced, ever-evolving world of real estate, it’s more crucial than ever to stay informed about potential hazards and scams. This blog post article was sparked by a recent report from the Department of Real Estate (DRE) about a rising tide of vacant land property scams. It is essential that we’re all on the same page when it comes to combating these threats.
A Rising Tide of Real Estate Fraud
In 2022, the DRE released a statewide Consumer Alert regarding identity theft and rental properties. Fast forward to the present day, and they’re now highlighting a new fraudulent trend: a growing number of perpetrators posing as owners of vacant land and contacting real estate agents, soliciting their assistance to sell a property they do not own.
Law enforcement and District Attorney offices across California are witnessing a sharp rise in real estate fraud involving identity theft and the sale of vacant land and unencumbered property. The criminals target properties free of mortgages or other liens, often owned by the elderly or foreigners, and use a variety of tactics to facilitate their fraudulent activity.
Drama Next Door: Quick-Thinking Neighbor Foils Real Estate Scam
In an alarming incident, local man Jeorge Dance almost lost his vacant lot to an elaborate real estate scam. His neighbor Maribel Munoz, a licensed realtor, noticed unusual activity on the property and discovered it was fraudulently listed for sale on Zillow. Upon Maribel’s alert, Jeorge contacted the police and the listing agent, uncovering a scam where his property was days away from being sold. The scam was orchestrated over the phone and through electronic signatures, exploiting public property information.
To better protect against such scams, property owners are advised to place their property in a trust or include multiple names on the deed. The Los Angeles County Assessor’s Office also urges owners to use its new email notification system, alerting them of any lien or deed recorded against their property within 48 hours. This dramatic near-miss underscores the importance of community awareness and protective measures in real estate, as scams continue to rise in the wake of the fraud-laden pandemic.
The Scam Blueprint
Fraudsters typically follow a pattern, identifying their targets through public records, posing as the owner, and reaching out to real estate agents to list the property. They’ll frequently request a below-market listing price to attract immediate interest and will often insist on no “For Sale” sign being posted on the property. They prefer cash buyers, rapid acceptance of offers, and quick closings. They typically refuse to meet in person, opting instead for contact via email, text, or phone, and they seldom accept video calls.
Their schemes also often include refusing to attend the signing and claiming to be out of the state or country, demanding the use of their own notary who then provides falsified documents to the title company or closing attorney, and insisting that proceeds are wired directly to them. Individually, these factors might not raise eyebrows, but when several or most are present, it’s cause for concern. Unfortunately, such fraud is usually only discovered when recording the transfer of documents with the appropriate county.
Prevention: A Shared Responsibility
Before accepting a listing, real estate agents must ensure they establish and verify the identity of a property owner. They can achieve this by requesting an in-person or virtual meeting and requiring government-issued identification. If a meeting is refused, they should employ a third-party identity verification service provider.
Additionally, agents should conduct an online search using the owner’s name, looking for a phone number and recent photo, and verifying the person’s identity. Other precautions include sending a copy of the electronically signed listing via overnight mail to the address on record for confirmation, and requiring that the property owner provides a copy of a voided check with the seller’s disbursement authorization form. Wire instructions should be double-checked to ensure they match the account details on the seller’s form.
Know What To Do
If you suspect you’ve been targeted in such a scam, or if you discover another real estate licensee potentially involved in fraud, you should report it to local law enforcement or your local District Attorney’s office. Additionally, the information should be provided to the DRE through its Enforcement Online Complaint System. After that, notify the Loft Blog at safety@laloftblog.com
Tools at Your Disposal
As we become more vigilant, it’s important to make use of the resources available to us. These include the San Luis Obispo County District Attorney’s Office, the California Association of Realtors, the American Land Title Association, and the State of Oregon Real Estate Agency, which all provide comprehensive information and updates on real estate fraud.
Stay Safe in the Real Estate Game
Vigilance is crucial in the world of real estate. Whether you’re a buyer, seller, renter, landlord, or investor, it’s crucial to be aware of these potential scams. Trust your instincts and if something feels off, it likely is. Keep communication transparent, engage professionals when necessary, and use all tools at your disposal to ensure your real estate transactions are legitimate and secure.
Our collective efforts can go a long way towards mitigating and eliminating real estate fraud, making the industry safer for everyone involved. As always, stay informed, be vigilant, and don’t hesitate to seek professional advice when needed. The world of real estate is vast and complex, but together, we can navigate it safely and successfully.
Know who and what you are dealing with. Request a free report on any building, property or person. Fill out the online form:
Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
