A wake-up call on real estate fraud

Imagine getting a call from a title company to finalize the sale of your land – only your land isn’t for sale.

That’s exactly what happened recently in Grimes County, where someone posing as a landowner listed a 15-acre tract online. The real property owner had no idea—and neither did the prospective borrower.

During the transaction, the title company contacted the actual owner and uncovered the scheme before it was too late.

“It turns out this person found the property, took photos and listed it online without actually owning it,” said Capital Farm Credit Relationship Manager Luke Rekieta. “We discovered the issue when the title company tried to contact the seller and realized the real landowner wasn’t involved.”

Real estate scams like this are becoming all too common. In some cases, a fraudulent seller attempts to profit from property they don’t own. In others, a buyer secures financing under false pretenses – or worse, both parties may be working together to commit fraud.

Advancements in technology are making these schemes more sophisticated, but our trusted advisors at Capital Farm Credit say there are steps you can take to protect yourself.

In this case, several red flags stood out:

• The actual landowner lived out of state and rarely visited the property.
• The seller resisted providing requested documentation.
• The seller wanted to complete the transaction using an online notary.
  
  

Other warning signs borrowers should watch for include:

• Pressure to close quickly.
• A deal that seems too good to be true.
• A property not listed with a reputable local real estate agent, or represented by an out-of-area agent.
• Communication conducted entirely through digital channels, including phone calls that may be AI-assisted.
• A seller who is out of state, out of the country, elderly or deceased.
• A buyer who has never met the seller.
• Requests to use unfamiliar or out-of-state notaries or Remote Online Notarization (RON) platforms – or to close by mail.
• Refusal to participate in video verification or insistence on text-only communication.
• Raw land with no improvements or visible activity.
• An appraisal completed without a site visit or without the landowner present.
• Property that is free and clear of any existing mortgage.
  
  

None of these signs alone prove fraud—but together, they may signal the need for a closer look.

If something doesn’t feel right, take action:

• Verify the identities of all parties independently.
• Ask questions and maintain a healthy level of skepticism.
• Work with trusted title companies, real estate agents and financial partners.
• Slow the process down if you feel pressured.

The difference between a close call and a costly mistake may come down to one extra conversation or one additional verification step. But sometimes the best indicator of all is gut instinct.

In this case, there’s a silver lining: the borrower avoided becoming a victim of fraud, and Capital Farm Credit is continuing to work with them to finance their dream property when the right opportunity comes along.