Estimated read time: 4-5 minutes
SANDY — A Sandy couple made a startling discovery: Someone nearly sold their horse property out from under them and their horses. Turns out, they were hit with an elaborate scheme the FBI has recently warned about that involves fraudsters impersonating landowners to dupe landowners, buyers and even real estate pros.
Kim Agnew learned her property had been put up for sale by happenstance. She had gone to feed her horses and found some guy parked in her driveway saying he's considering buying her land.
"They wanted to look at the property that was for sale and I probably gave him a look of like, 'What are you talking about?' and said it's not for sale," recounted Agnew. "And they said, 'Yes, it was listed yesterday.' And they showed me the listing."
Her property really was up for sale. She immediately called the real estate agent who listed the property.
"He did some investigation and pulled it off the listing right away," said Agnew.
Using real estate pros
Steve Fritzsche was that real estate agent.
"Oh yeah, I was scammed," he said. "I've been in this business 25 years and never would have imagined that this would have come along."
He said he got a call from someone identifying himself as Bob Agnew, Kim Agnew's husband. He was told they were looking to sell the land urgently. He said all the details he was fed matched up with a background check.
"Everything just so legit," Fritzsche said. "So legitimate. All the way down to the signatures on the document."
Even when he was told the Agnews had moved out of state.
"Most of our listings where it comes to land, they're out of state," Fritzsche explained. "We do this Docusign (electronic signature software), sell the land and they go to title."
A couple of hungry horses prevented the sale of the Agnew's property.
"Kim is out there a lot, hours and hours every day," said Bill Agnew. "So, that isn't probably the case with a lot of old vacant properties."
"It's easier to get away without being discovered," said Leigh Veillette, director of Utah's Division of Real Estate, as to why fraudsters target vacant land.
An elaborate scheme
Veillette said the criminals scour public records for vacant land without a mortgage or a lien on it.
"They figure fewer people are checking on those types of properties," she said.
To generate interest, a fraudulent seller will put the land up on the market for, well, a steal.
"Typically, what you're going to see is an asking price far below market value," Veillette said. "They're going to prefer cash buyers."
Vacant land fraud isn't new. What is new is criminals using legitimate real estate agents to list those properties. Why do that?
"To give an air of legitimacy to the transaction and to gain access to the real estate sale process," answered Veillette. "Working with a licensed professional who will know how to advertise your property and market it just heightens their access to potential unwitting buyers."
Protecting your land
So, how can landowners protect themselves? Veillette said set up free title alerts with your county recorder's office.
"You provide your email address and then you get an email anytime something is recorded on your property," she said. "Everyone across Utah has access to that type of service."
Veillette said owners should also check their properties regularly. Or enlist the help of neighbors.
"Getting to know folks in the area, if not neighboring properties, that could keep you apprised of any developments happening on your land," she said.
Veillette said red flags for real estate agents include sellers insisting on using their own notary. Also be wary of sellers who won't meet in person or on a video call — something that Steve Fritzsche said he has experienced.
"Let's get you on Zoom and let's have a call and I'll run through the paperwork with you," Fritzsche said.
As for the Agnews, they've put up signs making it clear their horse property isn't for sale. But that hasn't stopped the calls they're still getting from interested buyers.
"I feel violated," said Kim Agnew. "Really violated."
Last year, the Utah Legislature passed the Fraudulent Deeds Act, which allows the rightful landowners to ask the court to void a deed that's been fraudulently recorded. While it helps landowners, Veillette said unwinding a fraudulent sale will still likely mean a lot of court time and expense.
