🚨 DRE Urges Real Estate Agents to Be on Alert for Vacant Land Scams

The California Department of Real Estate (DRE) is warning licensees of a growing scam involving bad actors who pose as owners of vacant land and attempt to fraudulently sell property they do not own.

In these schemes, imposters contact real estate agents claiming to be the property owner and request assistance listing and selling vacant land. The properties targeted are often owned by elderly individuals, deceased owners, or absentee owners who live out of the area. Because vacant land is less visible and typically unoccupied, it can be especially vulnerable to this type of fraud.

The DRE reminds licensees that exercising proper due diligence and verifying ownership before accepting a listing is critical to protecting consumers, brokerages, and agents from serious legal and financial consequences.

Common Characteristics of Vacant Land Scams

While no single factor alone may indicate fraud, the risk increases significantly when multiple warning signs appear together. In many cases, the scam is not discovered until documents are submitted for recording with the County Recorder’s Office.

Criminals involved in these schemes may engage in some or all of the following activities:

• Search public records to identify properties that are free of mortgages, deeds of trust, or other liens
• Target vacant lots, long-term rentals, or vacation properties owned by elderly or absentee owners
• Impersonate the property owner and contact a real estate agent to list the property
• Request the property be listed below market value to generate immediate interest
• Ask that no “For Sale” sign be placed on the property
• Prefer a cash buyer, quickly accept an offer, and push for a rapid closing
• Refuse to meet in person and avoid video calls, relying instead on email, text, or phone communication
• Claim to be unavailable or out of state or out of the country during signing
• Demand use of their own notary, who then submits falsified documents to the title company or closing attorney
• Insist that sale proceeds be wired directly to them

How to Help Prevent Vacant Land Fraud

Before accepting a listing, real estate agents should take proactive steps to establish and verify the true identity of the property owner.

The DRE recommends the following best practices:

• Request an in-person or virtual meeting and require valid, government-issued photo identification. When possible, make and retain a copy of the ID.
• Ask for a copy of the most recent property tax bill or utility bill, which typically reflects the legitimate owner’s name.
• If the seller refuses to meet, require the use of a third-party identity verification service, such as Trulioo, Socure, Jumio, Onfido, iDenfy, or Veriff.
• Conduct an online search of the owner’s name to locate recent photos and phone numbers, and independently contact the individual to confirm ownership.
• Mail a copy of the electronically signed listing agreement to the address of record via overnight or certified mail with return receipt requested. This step may alert the legitimate owner to potential fraud.
• Require the seller to provide a voided check along with the seller’s disbursement authorization form.
• Use a wire verification service or confirm that wire instructions match the account details on the seller’s authorization form.

Brokerage Policy Reminder

As a reminder, our policy requires agents to speak with Dave or Paul prior to listing any property in which the agent and seller have never met in person.

Any suspected or alleged cases of real estate fraud should be reported to local law enforcement, including the local police department, sheriff’s office, or District Attorney’s office. If a real estate licensee may be involved in fraudulent activity, a complaint should also be filed with the California Department of Real Estate.

For additional information and resources, visit the California Department of Real Estate website.