Someone Sold a Mashpee Property. They Didn't Own It.

Most people assume that if a property is listed for sale, the seller owns it.

Unfortunately, that's not always the case.

A recent Massachusetts case involving a vacant parcel in Mashpee serves as a sobering reminder that real estate fraud continues to evolve. An individual posing as the owner of a vacant lot succeeded in selling the property to an unsuspecting buyer. The fraud was not discovered until months later, when the true owner learned that a home was being constructed on land he never intended to sell.

While fraudulent property sales are fairly uncommon, vacant land and unoccupied properties have become prime targets for scammers. Unlike an owner-occupied home, there are often fewer opportunities for neighbors, real estate professionals, lenders, attorneys, and title companies to interact with the actual owner. Fraudsters know this and exploit those gaps.

Several red flags were present throughout the transaction, including discrepancies in the seller's signature, unusual notarization issues, and questions regarding the seller's identity and location. The case serves as a reminder that even sophisticated fraud schemes often leave warning signs that can be detected through careful review and verification.

The financial consequences can be enormous. In the Mashpee case, the title insurer paid a $250,000 claim after the true owner surfaced and established that he had never authorized the sale of the property.

The good news is that many of these fraud schemes can be prevented through careful due diligence and healthy skepticism when something doesn't feel right.

Anti-Fraud Checklist for Buyers and Real Estate Agents

Before proceeding with the purchase of vacant land or other non-owner-occupied property:

✓ Verify the seller's identity using multiple sources, not just a copy of a driver's license.

✓ Ask whether the listing agent has personally met or spoken with the seller.

✓ Be cautious when all communication occurs solely through email, text message, or messaging apps.

✓ Investigate why the property is being sold and whether the asking price is consistent with market value.

✓ Compare signatures against prior recorded documents whenever possible.

✓ Scrutinize powers of attorney, notarizations, and documents signed outside Massachusetts.

✓ Confirm where sale proceeds are being sent and whether the destination is consistent with the seller's known circumstances.

✓ Pay special attention when the property is vacant land, inherited property, investment property, or otherwise unoccupied.

✓ Trust your instincts. If something seems unusual or doesn't add up, slow down and ask more questions.

✓ Work with experienced real estate attorneys and title professionals who understand current fraud trends and verification protocols.

Real estate fraud schemes continue to grow more sophisticated, but vigilance remains one of the most effective defenses. In fact, one Title Insurance Company advises its closing attorneys to: “ASSUME THE SALE OF VACANT LAND IS FRAUD UNTIL YOU PROVE IT IS NOT”.

A few extra verification steps at the beginning of a transaction can prevent months—or years—of litigation, financial loss, and heartache later.

If you have questions about buying or selling real estate, or concerns about a transaction that doesn't seem quite right, our office is always available to help.

📞 Have questions? Reach out anytime: www.vanderveen-law.com

***This article is intended for general informational purposes and should not be construed as legal, tax or other professional advice. Prior to acting on any information in this article, you should seek legal, tax or other relevant professional counsel.***