Amalfi Founder Anthony Marguleas warns about a real estate scam with vacant lots.
Realtor and Amalfi Founder Anthony Marguleas appeared on Fox News with Marla Tellez on January 7 about the latest scam in Pacific Palisades and Altadena: selling a lot that belongs to someone else click here.
Tellez asked Marguleas, “How prevalent is it?”
“Very prevalent,” Marguleas told her. He also told Circling the News that this scam has been tried twice, but “we caught it in time.”
The illegal land grab has become so prevalent that the California Department of Real Estate has put out an advisory to all 400,000 Real Estate Agents.
Marguleas said that scam artists pose as owners of vacant land and contact real estate agents for assistance in selling a property they do not own.
The criminals look for properties that are free of mortgages, deeds, trust or other liens. They specifically look for a property owner of a vacant lot especially those owned by the elderly or absentee owners.
Given the Palisades (and Altadena), are full of vacant lots the “pretend owner” tells the realtor to list the property below market value to generate immediate interest, and the “owner” also asks that no “For Sale” signs be posted on the property.
“These scams work because vacant land isn’t actively watched,” Marguleas said. “Scammers rely on urgency and impersonation to move fast.”
He told Marla that the criminal’s goal is to move fast to have funds wired, “We’re talking several hundred thousands of dollars,” he said.
Other telltale signs that realtors should look for:
- 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.
“If you own vacant land and live out of the area, periodically check that your property hasn’t been listed without your knowledge,” Marguleas said. “These scams work because that land isn’t actively watched. Scammers rely on urgency and impersonation to move fast.”
Marguleas added “Real estate is built on trust, but trust without verification is a liability.”