Frauds Thwarted Three Times Selling Property They Didn’t Own

by J.P. Plutt, Dillon Tribune | August 21, 2024

Dillon’s Century 21 realtor Betty Grose helped stop a fraudulent property sale when she became suspicious of a seller who insisted that no real estate signs be placed on the property.

According to Beaverhead County Attorney Sky Jones, a potential property fraud ring may be operating in Beaverhead County. Three incidents in the past month suggest that individuals or groups are trying to trick buyers into purchasing property that the fake sellers are marketing as their own.

“Attempted fraudulent land transfers are on the rise,” said Jones. “We don’t know if it is a group or one individual, but they represent that they own properties, typically vacant land, and try to get real estate listings for those properties even though they are not the true owners. They may have a copy of the true owner’s ID and then try to convince a buyer to purchase the property, take the money, and disappear. The buyer is then left with nothing.”

Sarah Bennett, manager of Flying S Title and Escrow, reported that her office thwarted three fraudulent property sale attempts in the past month. Bennett is concerned about how many other attempts may have been successful.

“It is the biggest fraud in the nation right now, surpassing wire fraud,” said Bennett. “When it hits Beaverhead County three times in one month, how many other cases don’t we know about?”

In one case, the real property owner lived in California, and the fraudulent seller insisted on using their own notary. Bennett’s office became suspicious when the seller refused to use the title company’s notary. The transaction was stopped, and the real owner was alerted. He later visited Montana to thank Bennett in person, as his property was where he planned to build his retirement home.

Bennett suspects that fraudsters are accessing Montana Cadastral, a free online property ownership website, to identify vacant properties with absent owners. They then pose as the property owners and attempt to list the properties for sale through realtors. Once a listing agreement is obtained, the realtor calls the title company for a listing packet, which provides the fraudsters with enough information to convincingly present themselves as the property owners.

In another case, a potential buyer was about to sign loan documents for a property that wasn’t actually for sale. Bennett had to inform the buyer that the seller was a fraud. “The buyer could have been financially ruined if they had gone ahead with building a house on that land,” Bennett said.

Bennett praised realtor Betty Grose for her diligence. Grose became concerned when a seller insisted that no real estate sign be placed on the property, which raised a red flag.

“Real estate agents, title companies—they are all legally obligated to vet sellers appropriately,” said Jones. “Buyers, especially those buying on their own, need to be aware and ensure that the person they are giving money to is the actual owner of the property.”

Bennett highlighted warning signs, such as a seller insisting on using their own notary, the land being vacant and owned by an absentee owner, and a seller who won’t allow real estate signs on the property.

Jones explained that once a fraudulent deed is transferred, it can become a legal mess. “These fraudulent sellers take the money and disappear, leaving the buyer potentially financially destroyed,” he said. “It’s crucial for everyone to do their due diligence when making such investments.”

Jones emphasized that the county would work with the FBI and other agencies to investigate these cases. “These fraudulent groups are becoming more efficient and aggressive. It’s important for everyone to ensure they are getting what they pay for.”

Original article: https://www.bozemandailychronicle.com/news/frauds-thwarted-three-times-selling-property-they-didnt-own/article_fd5aa493-5adc-5504-b422-e0d293425ec1.html