Utah warns of a spate of bogus sales of vacant land

Fraudsters are pretending to own empty acreages and eroding trust in real estate markets.

Regulators are warning Utahns about a spate of bogus sales of vacant land.

Officials with the state Division of Real Estate say they know of at least 10 recent instances in which fraudsters have impersonated owners of empty acreages or vacant lots and listed the properties for sale on sites such as the online marketplace Zillow or with official brokerages.

Margaret Busse, executive director of the state Department of Commerce, said in a news release that these scams were “particularly harmful because they erode trust in the real estate market at a time when we want to encourage continued engagement in the economy.”

The reemergence of sham sales of vacant lots and land parcels, Busse said, “means buyers need to be extra careful of this particular type of listing.”

With land often selling at a premium right now across Utah, these scams usually involve properties that are owned outright, a division spokesperson said, with fake owners often presenting themselves as living out of state and communicating only via text or email.

Fraudulent sellers, the division added, will commonly behave like they are in a hurry to close the transaction, or act aggressively or aloof and claim they are unable to meet locally and can sign documents only remotely.

In at least two of the 10 recent incidents, would-be buyers were duped into transferring funds electronically, said Zach Whitney, spokesperson for the Department of Commerce.

It remains unclear whether public notaries are also involved in some of these schemes, which the warning said have rarely also involved vacant condominiums, or if fake sellers are presenting false identification to pose as real owners.

Vacant lots or land parcels make for an easier target in these schemes, according to Jonathan Stewart, director of the state Division of Real Estate, “because there’s little reason to physically visit the property.”

“Without a building or home to walk through,” Stewart said in the release, “scammers can post photos and more easily pretend to be the seller.”

Even if prospective buyers do visit the property, the division added, there may be little sign the actual owner and the person listing the sale are not the same.

Other red flags in these scams include:

• The seller does not reside in Utah and may claim to be living abroad.

• The property is listed as “for sale by owner.”

• The vacant land is being listed at well below market value.

• The seller won’t provide details on the property, including homeowners association dues or transfer fees, utility charges or water rights.

The state Division of Real Estate’s advisory called on licensed real estate agents “to take extra precaution” to avoid land sale scams. That includes due diligence in checking identifications and verifying via land records that sellers actually own the properties they purport to sell.

Those discovering bogus listings should bring them to the attention of the hosting sites or brokerages in question. They can report them to the Division of Real Estate, at realestate.utah.gov.