Protect Your Property from a Fraudulent Sale

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My clients found the perfect parcel of land with stunning 360-degree water views, close to the beach. After extensive due diligence to ensure they could build their dream home, we moved toward closing. Then, I received an email from the attorney: a "recording block" was on the property, and steps were needed before ownership could transfer. Have you heard of a recording block? Let me explain.

Land listings are prime targets for real estate fraud, especially by scammers pretending to own the property. This is particularly common with land owned by out-of-state owners. Fraudsters often impersonate owners, provide fake documents, and list the land for sale. Since vacant land is often unmonitored, these scams can go undetected until it’s too late.

Scammers can forge property deeds, IDs, and signatures. By the time the fraud is discovered, the transaction is complete, and the fraudulent seller has disappeared with the funds. Unfortunately, homeowners' insurance won’t cover such losses. If you own land, having title insurance—even if you’re not planning to sell—can offer protection, depending on your policy.

A recording block is an effective safeguard against fraud. It’s a simple process where property owners place a “block” on their land records. This alerts town officials to confirm ownership before processing any sale or transfer, preventing fraudulent transactions. This step is especially important if you don’t live near or regularly check on the property.

If you own land in Rhode Island, contact your town office to learn how to set up a recording block. It’s a small step that could save you from a costly and stressful situation.

In my clients’ case, we experienced a few nerve-wracking days confirming the rightful property owner. Thankfully, the sale was legitimate, and they broke ground on their dream home in early November. I’m eagerly awaiting my dinner invite to celebrate their new place!