The Rising Issue of Vacant Land & Seller Impersonation Scams




Seller impersonation fraud continues to be a significant concern in the real estate industry, affecting both agents and clients alike. Despite ongoing efforts to combat these scams, they persist as a growing threat, with recent data indicating alarming trends.

Seller Impersonation Fraud: A Persistent Threat

In 2023, a troubling 28% of title insurance companies reported encountering attempts of seller impersonation. This nefarious practice didn’t diminish in 2024 either, with 19% of companies facing such attempts in April alone. This persistent threat underscores the need for heightened awareness and proactive measures to safeguard against fraud. Learn More about this trend here:  ALTA -Seller Impersonation Fraud Attempts Increase

One notable case highlighted the severity of these scams when a fraudulent seller impersonation led to an unsuspecting buyer unwittingly initiating a construction project on land that was never legitimately for sale. The ramifications can be financially devastating and legally complex, making awareness crucial for all involved in real estate transactions. Read the full story here: Man returns home to land he bought in 1991 to find someone's built a $1,500,000 house on it

Recent Incidents and Warnings

Recent incidents reported by agents serve as stark reminders of the prevalence of these scams. In one instance, an agent received a suspicious call regarding a piece of vacant land. Sensing something amiss, the agent requested a copy of the seller's ID, prompting the caller to cease communication immediately—a classic red flag in these fraudulent schemes.

Another incident involved an agent preparing to write an offer for a buyer interested in purchasing land in Merrimack, NH. During a site visit, a concerned neighbor informed the client that the property was not for sale—a revelation that prompted further investigation and confirmation that the listing was indeed a scam.

Red Flags to Watch For

Recognizing the signs of seller impersonation fraud is crucial for preemptive action:

  • Vacant or Unoccupied Property: Be cautious of land that appears abandoned or shows no recent signs of activity.
  • Below Market Value Offers: Exercise skepticism if the seller accepts offers well below the property’s market value.
  • Inability to Meet in Person: Genuine sellers typically have no issue meeting face-to-face; reluctance to do so should raise suspicions.
  • Pressure for Quick Cash Sales: Beware of sellers who insist on cash-only transactions or push for rapid closings.

Conclusion: Stay Vigilant

In conclusion, vigilance is key to combating seller impersonation scams in real estate. By staying informed, recognizing warning signs, and leveraging professional resources like Broker's Title, agents and clients can protect themselves from falling victim to fraudulent transactions. Remember, if something seems suspicious, it’s essential to investigate thoroughly before proceeding. Together, we can safeguard the integrity of real estate transactions and ensure peace of mind for all parties involved.

Stay safe, stay informed, and let's continue to protect our community from these fraudulent practices.


(603)434-1414  www.brokerstitlenh.com |info@brokerstitlenh.com

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