Scam to Sell Vacant Lots on the Rise

The latest real estate scam is privately owned vacant lots, free of a mortgage or other liens, being sold without the owner’s knowledge. The con artists will search public records and identify parcels of land that are free of a mortgage or other liens. The identity of the landowner is also obtained through this public records search. Posing as the property owner, the scammer contacts a real estate agent to list the property for sale. All communications are through email and digital means and not in person. The property’s listing price is generally at or below the current market value to generate immediate interest. The scammer quickly accepts the offer with a preference for cash sales. If the scammer uses an attorney or title company, all communication is via telephone or email. At the time of closing, the scammer refuses to sign documents in person and requests a remote notary signing. The scammer impersonates the notary and returns falsified documents to the title company or closing attorney involved in the transaction. The title company or closing attorney transfers the closing proceeds to the scammer, generally via a wire transfer. Unfortunately, the fraud is typically not discovered until the recording of transferring documents with the county clerk, after the money was already wired to the scammer.

One way to deter this from occurring is for the true property owner is to register with the Clerk of the County in which the property is located for an alert. The Property Alert Service is a way for property owners or other interested parties to receive alert messages by email when a document that affects a specific property is recorded by the Clerk's Office in the county where the property is located. The service matches data (municipality, block number, and lot number) in legal descriptions on recorded documents with requests made by subscribers. Additionally, a subscriber can register to receive alerts when documents are recorded with specific party names, such as elderly loved one. All recorded documents must go through a verification process before they are available to view through a public records search. This typically takes 5 to 7 business days. An alert is sent once the process is complete. If you find a document recorded against your name or property is fraudulent, you should contact your attorney or law enforcement officials.

For legal services, please contact the Law Office of Edward V. Murachanian in Brick, NJ today (732) 477-3030.

Date: March 07, 2024