Land Title Fraud in Maine: Scammers Are Selling Property Without Owner Consent

A growing wave of land scams is hitting Maine, as scammers use fake documents to steal properties right from under unsuspecting owners.

By Stephanie Grindley, CBS13 I-Team | Tue, August 13th 2024 | Updated Wed, August 14th 2024

YORK, Maine (WGME) — The FBI recently warned that fraudsters are selling land up and down the East Coast, and attempts are continuing in Maine.

“It’s beautiful,” York landowner John Campbell said while looking at the plot of land where he plans to build his retirement home. Campbell and his wife, Peg, bought the property two and a half years ago with big dreams. But, they never planned for what came next.

“Sunday I came up, and there was a for-sale sign on the land. So, I pulled the sign,” Campbell recalled.

Someone had been posing as Campbell with a fake license and reached out to unsuspecting realtors, hoping to sell the property from under his feet and make off with the cash. It’s part of a larger trend that the FBI recently warned about.

“Vacant land that doesn’t have a lien on it,” Campbell said.

It’s a problem the CBS13 I-Team first reported back in March, quickly catching the attention of landowners and local officials.

Cherri Crockett, President of the Maine Registry of Deeds Association, explained, “In all of the conversations that all 17 of the registers have had with all of our clients and property owners, there really isn’t any lock that they can do for their deed.”

Crockett says owners often don’t realize a deed is public record. “Anybody can have access to that,” she said. Once a document reaches the registry office, Crockett says it’s already a done deal.

“We are the last step. So, we need to be involved in that conversation, but I also think realtors, title agencies, and attorneys need to be involved to figure out the best step,” she said. “Where’s the responsibility lie? That’s the question a lot of property owners are asking.”

It’s a question law enforcement has asked as well.

Sheriff Bill King of York County noted, “Oh gosh. Actually, we stopped counting because there were just so many.” Sheriff King was behind a big push for “deed fraud” protections during the last legislative session. However, the bill, LD2240, met opposition from realtors and ultimately did not pass.

Paul McKee of the Maine Association of Realtors commented, “It was putting realtors at risk and responsible for this.”

The original sponsor of the bill, Senator Henry Ingwersen (D- York), hopes the issue will come up again next session, something the Maine Association of Realtors hopes can spur further conversation.

“We’re not lawyers, we’re not title people, we’re real estate agents. And I don’t think we should be the ones determining about a deed,” McKee said.

In the meantime, landowners like John Campbell fear the problem will only worsen if protections aren’t put in place.

Campbell added, “There are so many red flags they should have caught. They’re an hour and 45 minutes north. The guy used a Google Voice phone number as his contact information. The land was listed way below market value. They’re negligent.”

The Maine Real Estate Commission declined to be interviewed, but a spokesperson confirmed that “deed fraud” will become part of a required class for obtaining and maintaining a real estate license starting October 1, 2024.

To date, no realtor in Maine has lost their license due to land title or deed fraud. A spokesperson noted that any disciplinary action would depend on whether it’s found that they actually broke the law.

After the original story aired in March, the Registry of Deeds Association listed all the registries in Maine that offer free “fraud alert” sign-ups on their website. However, these alerts only notify you after the land title or deed has been recorded, meaning you’ll find out only after your land is no longer legally in your name.

Original article: https://wgme.com/news/i-team/theyre-negligent-maine-land-put-up-for-sale-without-owners-knowledge-scammers-scam-crime-landowners-maine-real-estate-commission