LAS VEGAS (KTNV) — A new scam is on the rise in Nevada, one the experts say is specifically targeting property owners, homebuyers and industry professionals.
According to the Nevada Division of Insurance and the Real Estate Division, scams known as "vacant lot fraud" or "seller impersonation fraud" are becoming increasingly prevalent. Officials say these cases often involve "bad actors" impersonating owners of a property or vacant lot in an attempt to sell it for their own profit.
Using public records, these scammers will identify owners of real estate that is "free of a mortgage or other liens," most often targeting vacant lots, and investment, vacation, or rental properties that are not occupied by the owner. The scammer will then pose as the owner and contact real estate agents to list the property for sale.
Officials say once an offer is made, the scammer will usually quickly accept the deal and send falsified documents to the title firm or closing attorney. After proceeds from the closing are transferred to the scammer, the fraud usually remains undiscovered until the transferring documents are recorded within the county.
homebuyers and licensed professionals are urged to conduct "additional due diligence" or outright halt a transaction if they see the following suspicious behaviors:
- Seller is difficult to reach via phone or refuses to meet via video call; only communicates via text or email
- Seller sets listing price lower than the current market value and wants a fast cash sale with little or no fee negotiation
- Seller refuses to attend signings; always claiming to be out of town
- Seller requests to use their own notary
- Seller demands proceeds be wired
- Seller has a different address than the owner’s address or tax mailing address
- Seller refuses or is unable to complete multifactor authentication of identity verification
The American Land Title Association has also shared precautions both homebuyers and industry professionals can take to help prevent theft, including:
- Contact the seller directly at an independently discovered and validated phone number
- Send mail to the seller at the address listed on tax and property records
- Ask the seller’s real estate agent if they have personal or verified knowledge of the seller’s identity
- If using a remote notary, be sure the notary is fully vetted and approved by your state; otherwise, the title company should arrange for an in-person notary signing at an attorney’s office, title agency, or bank.
- Verify the seller’s identity by sending the seller a link to complete a third-party identity verification
- Run the seller’s email and phone number through a verification program
- Ask conversational questions to ascertain seller’s knowledge of property information not readily available in public records
- Compare the seller’s signature to previously recorded public documents
- Use a wire verification service or confirm wire instructions match account details on seller’s disbursement authorization form
- Require a copy of a voided check with a disbursement authorization form
- Require that a check be sent for seller proceeds rather than a wire
Property monitoring services are also offered by most county recorder's offices to help alert owners to any activity or attempted transactions involving their property.
Additionally, if you are ever in doubt, have questions, or something does not feel right during a real estate transaction, officials say to always speak directly with your real estate agent/broker or your title insurance agent.
