Vacant Land Fraud: What It Is and How Title Insurance Helps Protect You
- marketing669181
- Jul 31
- 3 min read
In today’s fast-moving real estate market, scams are evolving just as quickly as the industry itself. One alarming trend that’s catching the attention of title professionals, realtors, and buyers alike is vacant land fraud—a deceptive scheme that can leave unsuspecting buyers, sellers, and even lenders exposed to serious financial loss.
At ClosePoint USA, we’ve seen firsthand how these schemes unfold—and more importantly, how the right protections can make all the difference. Here's what you need to know.
What Is Vacant Land Fraud?
Vacant land fraud typically involves a fraudster posing as the rightful owner of an empty or undeveloped property, usually one that doesn’t have a mortgage or is owned free and clear. Because there are no tenants or ongoing transactions, these properties often go unnoticed—making them prime targets.
Once the fraudster assumes the owner’s identity, they may:
List the land for sale with a real estate agent or directly online
Price it below market value to create urgency
Push for a quick cash closing, often remote and without a title search
Vanish with the buyer’s funds before the fraud is discovered
By the time the real owner is alerted—often months later—the fraudulent seller is long gone.
Who’s at Risk?
Vacant land fraud can affect multiple parties in a real estate transaction:
Buyers, who may pay for property they don’t actually own
Real estate agents, who unknowingly facilitate the fraudulent sale
Title companies, who may be pulled into legal disputes
Lenders, if financing is involved
Actual property owners, who find out their land was “sold” without their knowledge
Red Flags to Watch For
Here are a few common signs of potential vacant land fraud:
Seller is out-of-state or outside the country
Communication is only via email or text
Seller is unwilling to meet in person or via video
Requests a quick, all-cash closing
Pushes to use their own notary or closing service
Title records show no recent activity on the property
Name on the ID doesn’t match property records or public databases
If something feels “off,” it probably is.
How Title Insurance Protects You
One of the strongest defenses against real estate fraud is title insurance. Here’s how it helps:
✅ Verifies legal ownership through a comprehensive title search
✅ Flags suspicious activity during the due diligence process
✅ Provides coverage against fraud and forgery, shielding you from financial loss
✅ Offers peace of mind for both buyers and sellers
At ClosePoint USA, we also utilize enhanced fraud detection protocols, including ID verification, seller screening, and proactive monitoring of suspicious transactions.
What You Can Do
Whether you’re a buyer, seller, or real estate professional, there are steps you can take to reduce your risk:
Always work with a reputable title company
Be wary of pressure to close quickly or pay in cash
Verify the seller’s identity independently
Use secure communication channels
Report suspicious activity to local authorities and the FBI's Internet Crime Complaint Center (IC3)
Final Thoughts
Vacant land fraud is a growing concern, but with the right awareness and safeguards in place, it’s also highly preventable. At ClosePoint USA, we’re committed to keeping your transactions secure from start to finish. If you’re involved in a vacant land transaction—or any real estate deal—don’t go it alone.
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