December 30, 2025

DRE Urges Real Estate Agents to Be on Alert for Vacant Land Scams

SACRAMENTO – The California Department of Real Estate (DRE) is urging licensees to be on the lookout for bad actors posing as owners of vacant land and contacting real estate agents for their assistance to sell a property they do not own.

DRE reminds licensees to exercise due diligence to verify the owner of a property before accepting a listing. Typically, these scams involve an imposter owner using fake IDs to sell vacant land that is either owned by individuals who are elderly, deceased or live far away.

In the scheme, the criminal likely engages in some or all of the following activities:

• Searches public records to:
  1. Identify properties that are free of mortgages, deeds of trust, or other liens.
  2. Identify the property owner – This often includes vacant lots, long-term rentals, or vacation rentals, with targeted properties often owned by the elderly and/or absentee owners.
• Poses as the property owner and contacts a real estate agent to list the property for sale.
• Requests that the property be listed below market value to generate immediate interest.
• Requests that no “For Sale” sign be posted on the property.
• Requests preference for a cash buyer, quickly accepts an offer, and demands a quick closing.
• Refuses to meet in person, preferring to be contacted through email, text, or over phone, and typically refusing video calls.
• Refuses to attend the signing and claims to be unavailable and/or out of the state or country.
• Demands to use their own notary, who then provides falsified documents to the title company or closing attorney.
• Insists that proceeds are wired to them.

On their own, these characteristics may not be red flags, but when several occur, the risk becomes more apparent. Unfortunately, the scheme is usually only discovered when recording the transfer of documents with the appropriate County Recorder’s Office.

How to Prevent the Scam

As a real estate agent, before accepting a listing, you should take steps to establish and verify the identity of a property owner.

Some tips to establish and verify the identity of a property owner include:

• Request an in-person or virtual meeting and see proper government-issued identification. If possible, make and retain a copy of the government-issued identification.
• Request a copy of the most recent tax bill or utility bill for the property. The tax bill or utility bill usually will include the name of the property’s legitimate owner.
• If they won’t meet, require them to utilize the services of third-party identity verification service provider.
• Conduct an online search using the name of the property owner. Look for a phone number and recent photos. If you find a number, contact that person and verify they are the actual owner.
• Send a copy of the electronically signed listing to the address of record with a request to confirm the listing’s accuracy via overnight mail or certified overnight mail, return receipt requested. This will alert the legitimate owner of potential fraud.
• Require that the property owner provide a copy of a voided check with the seller’s disbursement authorization form.
• Use a wire verification service or confirm wire instructions match account details on the seller's disbursement authorization form.

DRE also encourages brokers to develop written policies with respect to listing properties in which the licensee and seller have never met in-person and train their affiliated licensees on these policies.

Alleged cases of this or any other type of real estate fraud should be reported to local law enforcement authorities, such as local police, sheriff, and/or District Attorney’s office. If there is a real estate licensee potentially involved in the fraudulent activity, you should file a complaint with DRE.

The Department of Real Estate is the regulatory agency that enforces the Real Estate Law, Subdivided Lands Law, and Vacation Ownership and Timeshare Act. DRE oversees the licensure of approximately 434,000 licensees. The Department’s mission is to safeguard and promote the public interests in real estate matters through licensure, regulation, education, and enforcement. Consumer protection is its highest priority. For more information, visit: www.dre.ca.gov.