Florida's sunny skies and booming real estate market make it a prime target for fraudsters, and unfortunately, unencumbered land – property owned free and clear, without a mortgage – is especially vulnerable. As a real estate attorney in Florida, I've seen firsthand the devastating consequences of these scams, and I want to equip you with the knowledge to protect your valuable assets.

The Allure of Unencumbered Land for Fraudsters

Imagine this: you own a vacant lot or a piece of rural land in Florida, or perhaps you own a home free and clear. You've held it for years, perhaps as an investment or a future retirement spot. Because there's no mortgage, there's no bank actively monitoring the property. This lack of oversight makes it an attractive target for fraudsters.

Here's how these schemes often unfold:

* Forged Contracts: Fraudsters, sometimes from Canada, will reach out to a title company with an electronically signed contract with a quick cash closing.  At Bosshardt Title, we send a letter to owners of vacant properties at the address associated with the tax bill to help ensure we are dealing with the current property owner.

* Forged Deeds and Transfers: Scammers create fraudulent deeds, impersonating the actual owner, and transfer the property to themselves or a shell corporation. These documents can be surprisingly convincing, often fooling title companies and even notaries. This is one of the reasons title searches are such an important part of our process at Bosshardt Title. 

* Straw Buyers and Quick Sales: Once the fraudulent deed is recorded, the scammer quickly sells the property to an unsuspecting buyer. This rapid turnover makes it difficult to trace the fraud and recover the land. We do diligent research to ensure this is not occurring under out watch. 

* Identity Theft: Identity theft is a common tool used in these scams. Fraudsters obtain your personal information to create fake IDs and other documents, making it easier to impersonate you. We have seen at least one transaction, where the person impersonating the seller had a Florida Drivers License with the address on the tax rolls. This is one reason why you must have two valid forms for identification for closing. 

Protecting Your Florida Land: Essential Steps

Here's what you can do to safeguard your unencumbered land:

* As a homeowner - Register with the Property Appraiser: Most Florida counties offer programs that allow you to register your property and receive alerts about any changes to your ownership records, including address changes. This is a critical first line of defense.  The sooner you know that your property is subject to a fraudulent scheme, the sooner you can move forward with repairing title and mitigating the loss.  Alachua County's program is called “Title Alert” and the website to register is https://www.acpafl.org/title-alert/.  If you cannot find your counties alter websie, we can help! 

* As a Buyer - Ask the title company what safeguards are in place to ensure that they are dealing with the true owner of the property. Do your own google/internet/social media searches to reach out to who appears to be the real owner to confirm the transaction. The most costly risk is if you buy the vacant land, obtain title insurance for the price of the land and then build improvements. The title insurance is only for the price of the land and you will be out the cost of your improvements. If you have questions, ask us about what else you can do! 

* Regularly Check Your Property Records - Periodically review your property records online through the county's official website. Look for any unauthorized changes or filings. 

* Consider a Mortgage or Line of Credit - While it may seem counterintuitive, obtaining a small mortgage or a line of credit secured by your land can add a layer of protection. Banks and lenders are vigilant about monitoring their collateral, and they'll be more likely to detect any suspicious activity.

* Physical Inspections - If possible, periodically visit your land to check for any signs of unauthorized activity.

IF YOU BECOME A VICTIM OF LAND FRAUD

* Notify Law Enforcement.  If you are a victim of land fraud, notify the local police department and local FBI office. Note, Florida law makes it a felony to publish a forged deed with the intent to defraud.  Section 831.02, Florida Statutes.

* Contact a Florida Real Estate attorney to help determine the next steps for you to recapture your property. We have a Board Certified Real estate attorney on staff to assist you with questions or issues. 

Why Unencumbered Land is a Prime Target

Properties without mortgages are particularly attractive to fraudsters because:

* There's no lender monitoring the property.

* Transactions can be completed more quickly without lender involvement.

* It's easier to conceal fraudulent activity.

Don't Become a Victim

Real estate fraud can have devastating consequences, but by taking proactive steps, you can significantly reduce your risk. Stay informed, stay vigilant, and don't hesitate to seek professional help. Protecting your property is an investment in your peace of mind.