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Fresno County is taking action on a type of real estate fraud that can turn a forged deed or phony loan filing into a major financial problem for owners. The new local safeguard arrives as the FBI warns that scammers may pretend to own vacant property and try to sell it without the real owners’ knowledge or consent.
Proposed by Fresno County Assessor-Recorder Paul Dictos and Fresno County Supervisor Buddy Mendes, the Real Property Fraud Prevention Notice Ordinance cleared the Board of Supervisors on Sept. 8 and is slated to take effect Oct. 8, according to The Business Journal.
Here’s what to know
The measure lets property owners record a warning that asks title and escrow professionals for extra verification before they accept a deed or finish a loan involving that property.
The FBI warned in a public service announcement on June 16 that a scammer may try to unload vacant property by pretending to be its owner, The Business Journal reported. To carry out the scheme, the agency said, criminals may use bogus identification, email accounts, and internet-based phone numbers to pass themselves off as landowners.
Before closing, the notice asks professionals to contact the property owner through independently provided information, confirm the signer’s identity through a qualified title company, obtain ID and a notary thumbprint, and send proceeds only to an account the title company has verified.
County officials said Fresno is the first county in California to adopt this type of ordinance, and the county is urging other counties and the state to also put protections into action, per The Business Journal.
More background
Vacant land can be especially attractive to fraudsters because there may be no one living on the property to spot suspicious activity right away. If an owner lives elsewhere or does not routinely monitor county records, this can unfortunately create the perfect conditions for a scam to happen without anyone realizing something is wrong.
According to the FBI, red flags can include a supposed seller who communicates only electronically, refuses to meet in person, pushes for a rushed closing, provides conflicting information about the property, or asks for proceeds to be wired to an account under another name or in a location unrelated to the property.
A fraudulent deed or mortgage can pull a home or parcel into legal disputes and create expensive, time-consuming problems for families trying to protect one of their largest assets.
What’s being done?
Fresno County already offers a free Property Owner’s Protection Alert service. According to the county, the program emails subscribers when a recorded document involves their name. It already has over 5,000 subscribers.
The FBI similarly recommends that property owners check whether their county recorder or another local office provides alerts by email or text when a legal document is recorded in their name. Those notifications can help people catch unauthorized filings early, when there may still be more options to challenge them.
The county directs victims to the FBI’s Internet Crime Complaint Center, or IC3.
Where can I learn more?
Property fraud is one of several issues that can catch owners and buyers off guard. These stories look at vacant land warning signs, California insurance notice concerns, land value threats, and conflicts involving neighbors and HOAs.
• Buyers can miss vacant land red flags when a low price hides bigger property risks.
• In California, homeowners say a bizarre discovery in non-renewal notices exposed a dishonest insurance scare.
• Nedbank launched a free online tool to flag invasive plants threatening land value.
• A homeowner was threatened with a lawsuit after a neighbor challenged trees on a property line.
• One homeowner accused an HOA of tampering with property by disabling an outdoor outlet.
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