Protecting Against Vacant Land Fraud – New Identity Verification Procedures

To download this Procedure as a PDF Document, click below:

CPUSA Vacant Land Procedure Memo 5-30-25 to Realtors Attorneys and Lenders.pdf

Download PDF • 154KB

Purpose

This memo outlines critical procedures ClosePoint USA LLC has adopted to combat a growing trend in real estate fraud: impersonation of property owners in vacant land transactions. With these transactions increasingly being exploited, we are asking our trusted industry partners to join us in implementing enhanced protocols to protect all parties.

The Threat

Fraudsters are targeting vacant lots—particularly those without mortgage liens or visible structures—by impersonating the legal owner and attempting to sell the property without their knowledge. These scams often result in devastating financial losses and clouded title chains that impact buyers, lenders, and title insurers.

ClosePoint USA’s Protocol (Effective Immediately)

ClosePoint USA LLC has adopted the following multi-step process to verify Seller identity in all vacant land transactions:

1. Ownership and Address Validation

• The Seller’s name and mailing address are confirmed using the most current property tax assessor records.

2. Certified Identity Confirmation Letter

• A standardized letter is sent via Certified or Registered Mail to the mailing address on file with the county tax office.

• The letter states that ClosePoint USA LLC has been requested to act as the Title and Settlement Agent and requests confirmation of the Seller's intent to sell.

• The Seller must sign and return an acknowledgment via email to the assigned processor (contact info provided in the letter).

• 📌 This document is located in the Master Document List in TitleFusion, our title software system.

3. Signed Acknowledgment Required

• The transaction will not proceed without a signed confirmation of the Seller’s identity and intent.

4. Mandatory In-Person Closing

• Sellers must attend closing in person and sign documents in the physical presence of a ClosePoint USA LLC representative.

• No remote or electronic Seller signings are permitted unless authorized by the CEO and subject to elevated due diligence.

What Realtors, Attorneys & Lenders Can Do

We respectfully ask that all our referring professionals adopt these vigilance practices when handling vacant land deals:

Realtors:

• Personally meet the Seller early in the transaction.

• Ask for a copy of the Seller’s government-issued photo ID.

• Review the deed and tax records for consistency with the Seller’s name and mailing address.

• Report any suspicious signs such as:

  • Reluctance to meet in person.

  • Urgency to close quickly.

  • Use of an out-of-state notary or POA.

Attorneys:

• Verify client identity independently, especially in cases where you are retained late in the transaction.

• Request a signed affidavit of ownership and intent.

• Confirm that any Power of Attorney used is properly executed and notarized within the U.S., and validate the notary.

Lenders:

• For vacant land financing or payoff of existing liens:

  • Require a title commitment review showing owner-of-record matches Seller.

  • Look out for recent title changes or newly recorded deeds within 60–90 days.

  • Ensure borrower’s identity verification protocols align with Know Your Customer (KYC) standards.

Red Flags That May Indicate Fraud

• The Seller:

  • Is located overseas or out-of-state and will not attend closing.

  • Is not the same name as the current property tax bill.

  • Wants to use email-only communication.

  • Sends a recently executed deed unrelated to the contract timeline.

• The contract:

  • Is significantly below market value.

  • Is cash-only with urgent demands for fast closing.

Together, We Can Prevent Fraud

We value the trust you place in ClosePoint USA LLC. Your role in the real estate transaction is vital, and by working together, we can prevent this type of fraud from impacting our clients and businesses.

If you suspect a transaction may involve a fraudulent Seller or vacant land scam, please notify ClosePoint USA LLC immediately at 888-614-0050 or email me directly.

Christopher J. Brown Title Officer & CEO ClosePoint USA LLC