Utah Dept. of Commerce: Be aware of vacant land scams in the state

SALT LAKE CITY — The Utah Division of Commerce’s Division of Actual Property is urging land patrons and house owners to concentrate on a rip-off involving vacant heaps and land parcels.

The division mentioned in a press launch Wednesday that they’ve been notified of at the very least 10 totally different cases of this rip-off, including that they think others have occurred.

“The rip-off sometimes entails vacant land that’s owned outright. A fraudster locates a property by way of public information, impersonates the proprietor, and lists the property on the market, often as a FSBO (For Sale by Proprietor), for a worth properly beneath market worth. Many of those false listings seem on third get together property websites like Zillow, however the division has obtained phrase that extra of them are being listed with brokerages to get the itemizing on a a number of itemizing service (MLS),” the discharge acknowledged.

Division of Commerce Government Director Margaret Busse mentioned, “These youngsters of scams are significantly dangerous as a result of they erode belief in the true property market at a time after we wish to encourage continued engagement within the financial system.”

“However this rip-off shouldn’t deter anybody. It means patrons should be additional cautious with this specific sort of itemizing,” she added.

The division mentioned the scammers sometimes current themselves as out of state and talk solely by way of e-mail or textual content. Additionally they push for a fast shut, together with using a distant notary and title service.

“It’s not clear whether or not the notary is concerned within the fraud or if the sellers are presenting false identification to signify themselves because the property house owners,” the discharge acknowledged.

Division of Actual Property Director Jonathan Stewart mentioned, “Vacant lot or land parcel listings are a better goal for scammers as a result of typically there’s little purpose to bodily go to the property. With out a constructing or residence to stroll by way of, scammers can put up images and extra simply faux to be the vendor.”

To keep away from any such rip-off, the division recommends waiting for the next purple flags:

• The Itemizing entails vacant land (in uncommon circumstances, vacant condos)
• The vendor shouldn’t be in Utah and should declare to be in a foreign country
• The vendor will solely signal paperwork remotely and won’t have somebody meet domestically
• The vendor gained’t present detailed details about the property.
  • Usually they aren’t in a position to present details about Membership Memberships, HOA dues, HOA switch charges, utility prices, water rights, water shares, and many others.
• The vacant land is being listed for properly beneath market worth
• The vendor is in an enormous hurry to shut
• A vendor acts aggressively or aloof

Brokers have additionally been inspired by the division to take additional precautions to keep away from this rip-off.

“In case you are contacted about promoting vacant land or if you’re representing a purchaser who’s taking a look at vacant land, please do your due diligence and be sure the sellers truly personal the property.”

These steps embrace:

• Analysis the identify of the vendor and examine their photograph ID
• Take further steps to establish possession of the land
• Ask particular questions concerning the property particulars

If a list of this nature is discovered, the division says it is best to report it to the itemizing website or the brokerage, if one is listed. Reviews can be made to the Division of Actual State at realestate.utah.gov.