Crested Butte Vacant Land Scams – Last week I got a call from another real estate agent in Crested Butte: “Hey, I got an internet lead to represent what I think is a fraudulent seller who represents they own you client’s vacant land in Mt. Crested Butte at __ Anthracite Drive – are you aware that they are interested in selling?” I was positive they did not want to sell their parcel of land in Mt. Crested Butte, and I called them to confirm.
There has been a number of other similar scenarios playing out in Crested Butte as these bad actors are targeting vacant land across the country.
With all the unfounded media reports of late bashing real estate agents – I am proud that our local Gunnison-Crested Butte Association of REALTORS® is working together to protect land owners, and the general public.
Gunnison County has now implemented a system to notify property owners via email for any activity related to their property. This includes refinancing, liens or change in ownership… See article in Gunnison Country Times. Set-up at iDocMarket.com.
So how do these Crested Butte Vacant Land Scams work…?
What is going on here and across the country…? See details below – excerpts from transcript from Charlie Lee, Senior Counsel and Director of Legal Affairs for National Association of REALTORS.
“Vacant land scams have become an increasing problem, where potential buyers, property owners and real estate agents are defrauded. We will discuss how to identify these scams and best practices to help you AND your clients from falling victim to them.
Scammers begin by combing through public records to identify vacant parcels of land and properties free of mortgages and other liens. Once identified, the scammer poses as the property owner and tricks a real estate agent listing the property.
For the agent, the deal seems too good to pass up. The seller is willing to sell below market value, the property generates great interest, and they’ll quickly accept an offer with a preference for a cash sale. They often don’t even want the agent to post a “For Sale” sign on the property, explaining that there are urgent circumstances.
The imposter seller is typically out of state or even the country and will usually only communicate electronically. Once closing approaches, the scammer will request a remote closing using a remote notary. In some cases, they may even impersonate the notary and provide falsified documents. Unfortunately, the fraud usually isn’t discovered until after the buyer’s money has been wired overseas to the scammer. These scams have defrauded buyers out of great sums of money, and left property owners and brokers and agents having to sort out the mess.
Recommendations To Avoid These Scams:
For Real Estate Agents –
First, be cautious if someone asks you to sell vacant property for less than its fair market value. And do your due diligence to verify that the purported seller is the actual property owner. For example, ask for multiple forms of identification and proof of ownership and request a face-to-face meeting. Test their knowledge about the property by seeking information that isn’t available in public records or information readily available online.
Second, conduct independent research to confirm the property owner. Look online for a recent photo and consider contacting their last agent or a neighbor. And try to verify the seller’s email and phone number.
For Title Company –
Third, avoid having the seller arrange for the notary at closing. Instead, ensure that the notary is a vetted, independent, and approved remote online notary and confirm remote notarization is permissible in your state. Having the title company to select the notary is recommended.
Fourth, ask the seller to provide a copy of a voided check with a disbursement authorization form. And use a wire verification service to confirm accuracy of the account information and ownership.
Lastly, if you suspect that you’re involved in a vacant lot scam, contact law enforcement by filing a complaint at IC3.gov, and reaching out to federal, state, and local authorities. And work with your MLS to have the property listing removed and take down any advertisements about the property as quickly as possible.
For The Vacant Land Owner –
In the Crested Butte real estate market it is customary for the seller to select the title company, and pay for the owner’s title insurance policy to provide proof of clear title – and to the benefit of the buyer.
A buyer (who is the real land owner) with an Owner’s Policy is covered by the title company if they fall victim to this Vacant Land Scam.
This is found in the Contract to Buy & Sell – paragraph 8.1. Evidence of Record Title.
8.1.1. Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance company to furnish the owner’s title insurance policy at Seller’s expense.
Disclaimer: I am a top real estate agent – but I am not an attorney, and cannot provide legal advice. There are some very good local attorneys in the Gunnison valley, and I am happy to provide recommendations and contact info.
How can I help you with Your Crested Butte Real Estate Needs?
If you are considering buying or selling – I have been in your shoes. My wife and I were second homeowners for 10 years prior to moving our family to Crested Butte full time.
I am consistently among the Top Real estate agents in Crested Butte and among the top 1% of all Coldwell Banker Agents in the world, and I strive to exceed client expectations.
Especially now in these crazy post Covid times you need a trusted advisor to help you sort out your next steps. Call or Text me: (970) 209-5405
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Chris Kopf, Global Luxury Property Specialist
Coldwell Banker Mountain Properties
970-209-5405 or Chris.Kopf@CBMP.com
chriskopfCB.com or call or text: (970) 209-5405
