If you have a vacant lot, land or even a paid off mortgage, watch out for this scam.

Background:

I've received several calls about purchasing a vacant lot. The phone number is never from the area and the call doesn't seem automated. The person asks about a little piece of land I own. They say they are looking to purchase something like it and would like to make a cash offer. They usually ask something as simple as "How much would you sell it for?" And, like most sellers, if you are engaged in the conversation, you shoot a high number. Let's use $100,000. Caller says, "That seems fair. I'd like to purchase it."

What's Going On:

The first caller is really just a human search engine trying to find people who might be willing to sell a property. The next call is usually from someone who wants to make an offer.

Here is what you need to watch for:

1. Somehow, they will weave into the conversation that you need to send them money. Just a small bit. Probably say something about covering the notary and overnight documents. Doesn't really matter, but something.

2. Eventually, the deal has a hiccup and you'll be asked to send more money. Or in some cases, told that you did something illegal and need to send an even bigger amount to fix the problem.

The overall goal in the scam is to take your property and/or your money. Since there is no mortgage or lien on it, the process to transfer into someone else's name is easier than for an encumbered property. FYI: Encumbered properties have some legal claim to them like a mortgage, lien or restriction.

How to avoid the scam:

1. By far, the easiest way is to not respond to the voicemail or text. And if you do pick up the call, say you are not interested.

2. Remember that as the seller, YOU and if using a broker, pick the title company. We have wonderful title companies in the area, which means there is no reason to have the buyer pick the title and some unknown notary.

3. If you think the deal is legit:
A. Work directly with a local title company to write a contract and request earnest money.
B. Work with a real estate broker and have them write the contract and coordinate with the title company.

4. With the last few calls, (Disclaimer: I have to let the buyer know that I'm a licensed Managing Broker in Illinois. That usually scares them away.) once I mention earnest money and that we will be managing the contract, I never hear from them again.


Moral of the Story:

If you have unencumbered property, meaning it is FREE and CLEAR, BE CAREFUL. In my opinion, those properties are the first targets for the scammers.

Most of the counties in Illinois have an online public tax search tool. Check out your property every once in a while.

Should you have any general questions, add to the discussion. If you have specific questions, feel free to give me a call or text.

George Sykes
President, Wildfire Internet
Managing Broker, Worth Clark Realty
618-531-4000