The Division of Real Estate has been made aware of a real estate scam in Colorado that is taking advantage of potential buyers and their real estate brokers involving properties being marketed for sale as For Sale By Owner (“FSBO”).
The Colorado Bureau of Investigation, together with the Colorado Association of REALTORS® and the Land Title Association of Colorado have provided information and an informational flier concerning the details of how this fraud is operating and tips to be aware of in order not to be scammed.
The informational flier can be found at this LINK.
These scams involve:
- Vacant Land that is being sold by non-owners. The fraudster is looking for vacant land that is free and clear.
- The fraudster typically wants a cash transaction and a quick closing.
- The seller states they are out of state and had a notary in that state notarize the document(s).
- The seller communicates by text or email.
Consumers and Colorado real estate licensees should be aware that these fraudsters are difficult to identify. If you get a call to list vacant land or are interested in purchasing vacant land, be sure to exercise due diligence and check into the address of the Seller with public records. Similarly, if you or your buyer identify FSBO opportunities matching the foregoing profile, parties should take additional steps to identify the true property ownership.
If you suspect that you are a victim or see suspicious activity, please contact your local authorities.