The Colorado Division of Real Estate issued an advisory, noting it had been made aware of a real estate scam in the state that is taking advantage of potential buyers and their real estate brokers involving properties being marketed as For Sale By Owner (FSBO).
The Colorado Bureau of Investigation, Colorado Association of Realtors and the Land Title Association of Colorado provided information regarding the scheme and tips to be aware of in order not to be scammed.
The informational flyer states, “In most instances it includes vacant land. A fraudster locates a property and impersonates the owner of the property. They list the property for sale (typically as a FSBO) on various real estate syndication websites, looking for a buyer who wants a quick close. The ‘seller’ communicates primarily via text or email and usually requires a mail-out closing. The ‘seller’ signs the deed and has it notarized; it is not clear whether the ‘seller’ is using a fraudulent notary, or whether they are presenting false identification to a legitimate notary. The fraudster will sometimes use the listing to connect with a trusted buyer's broker before going under contract, which gives the transaction an additional air of legitimacy.”
It reminded consumers that these scams involve:
- Vacant land that is being sold by non-owners. The fraudsters are looking for vacant land that is free and clear.
- Fraudsters typically want a cash transaction and a quick close.
- The seller states they are out of state and had a notary in that state notarize document.
- Seller communicates by text or email.
It suggested that real estate licensees who get requests to list vacant land do due diligence and check into the address of the seller LLC with public records. It said real estate licensees and their buyers who identify FSBO opportunities matching the foregoing
profile should take additional steps to identify ownership.
Those who suspect they are a victim or see suspicious activity should contact local authorities and the Colorado Bureau of Investigation at reportwirefraud.state.co.us.