The District Attorney urges Real Estate professionals to be on alert for criminal fraud by thieves pretending to be property owners.
It have been numerous reports of real estate fraud involving criminals who are posing as property owners and contacting real estate agents to sell a property that they do not own title to in the county of Saint Luis Obispo, California. The criminals have engaged the real estate professional by impersonating the property owner and are attempting to negotiate the sale of properties which are vacant or lien free.
Properties often include vacant lots or rentals. The crime process consists of the following steps:
The criminal, posing as the property owner, contacts a real estate agent to list the targeted property for sale and requests it being listed below the market value to generate immediate interest. Requests preference for a cash buyer, and quickly accepts an offer.
Refuses to sign closing documents in person and requests a remote notary signing.
Impersonates the notary and provides falsified documents to the title company or closing attorney.
The title company or closing attorney unwittingly transfers closing proceeds to the criminal.
All communication is electronic, not in person.
In recent weeks there have been numerous reports of real estate fraud involving criminals who are posing as property owners and contacting real estate agents to sell a property that they do not own title to. The criminals have engaged the real estate professional by impersonating the property owner and are attempting to negotiate the sale of properties which are vacant or lien free.
District Attorney Dan Dow urges all real estate professionals to beware of a new scam that is now happening frequently. Law enforcement agencies in several California counties have observed a recent sharp increase in reports of real estate fraud associated with the sale of vacant land and unencumbered property. Criminals are posing as property owners and through a series of impersonations are negotiating the sale of properties which are vacant or lien free.
The San Luis Obispo County District Attorney’s Office is investigating seven such attempts within our county occurring since mid-April. The District Attorney’s Office Real Estate Fraud Unit has already notified county-wide real estate associations, title companies, and the County Clerk-Recorder’s Office.
Property owners are encouraged to check their property address using a trusted real estate website such as Zillow or MLS (Multiple Listing Service) to determine if their property has been fraudulently listed for sale.
How the scheme works: The criminal searches public records to identify real estate that is free of mortgage or other liens and to identify the property owner. Properties often include vacant lots or rentals.
The criminal, posing as the property owner, contacts a real estate agent to list the targeted property for sale and requests it being listed below the market value to generate immediate interest.
The criminal, posing as the proper owner, requests preference for a cash buyer, and quickly accepts an offer.
The criminal, posing as the property owner, refuses to sign closing documents in person, and requests a remote notary signing.
The criminal or co-conspirator impersonates the notary and provides falsified documents to the title company or closing attorney.
The title company or closing attorney unwittingly transfers closing proceeds to the criminal.
All communication is electronic, not in person.
How it is discovered
Often when recording the transfer of documents with the relevant county.