7 Red Flags to Lookout for When Selling Vacant Land

MLSListings reminds you to stay alert for an active real estate scam related to vacant lots and land parcels which first surfaced as a nationwide scam earlier this year, and recently is reoccurring here in our local market.

If you discover your listing is fraudulent, please contact your broker and MLSListings Compliance at Compliance@MLSListings.com immediately.

MLSListings Alert: Vacant Land Scam

Published: January 27, 2023

Be on the lookout for a scam related to vacant lots and land parcels which first surfaced as a nationwide scam but recently impacted agents locally.

The scam typically involves vacant land that is owned outright. A fraudster locates a property through public records, impersonates the owner, and lists the property for sale for a price well below market value.

MLSListings was recently informed by a subscriber that their office was affected by this scam, and immediately removed the fraudulent listing from the MLSListings database.

Because there's often not a home or building on the property, the scammers usually present themselves as out of state. Communication is typically exclusively via email or text and the scammers push for a quick close, including the use of a remote notary and title service. It is not clear whether the notary is involved in the fraud or if the sellers are presenting false identification to represent themselves as the property owners.

To stay clear of this scam, watch for the following red flags:*

• The Listing involves vacant land (in rare circumstances, vacant condos)

• The seller is not local, and may claim to be out of the country

• The seller will only sign documents remotely and will not have someone meet locally

• The seller won't provide detailed information about the property. Typically, they are not able to provide information about Club Memberships, HOA dues, HOA transfer fees, utility charges, water rights, water shares, etc.

• The vacant land is being listed for well below market value  

• The seller is in a big hurry to close

• A seller acts aggressively or aloof

* Source: Utah Department of Commerce's Division of Real Estate