Is a Cash Land Offer Legit? How to Vet a Land-Buying Company
Key Takeaways
- A legitimate buyer never asks you for money up front, and earnest money never goes to the buyer directly: real deposits are held by a licensed title company or closing attorney in escrow, not paid to the buyer — the FTC warns that anyone requiring a cash deposit before a normal transaction process is a scam signal
- Vacant-land owners are the primary target of a fast-growing fraud wave: the FBI's Internet Crime Complaint Center reports a roughly 500% increase in vacant-land fraud over four years, with criminals impersonating owners to sell land out from under them — which means the same verification habits that protect you from a fake buyer also protect you from a fake "you"
- You can verify a real land-buying company in under 30 minutes: check the entity on the Secretary of State, look up the BBB profile, demand a signed written purchase agreement, confirm closing happens through a reputable title company or attorney, and refuse any deal that skips those steps
Is a Cash Land Offer Legit?
A cash offer on your land can be completely legitimate — many established land-buying companies make firm, written, parcel-specific offers and close quickly through licensed title companies — but the same channel that delivers real offers also delivers scams, and telling them apart comes down to a short list of verifiable facts. The fastest way to know whether an offer is real is to check who is making it, how the money is supposed to move, and whether the deal flows through a neutral, licensed closing agent. This guide walks through the red flags federal agencies are warning about right now, the green-flag behaviors of a legitimate buyer, and the exact steps you can take to vet a company before you sign anything. If you want a broader primer first, our overview of whether "we buy land" companies are legit pairs well with this one.
What Are the Red Flags of a Land-Buying Scam?
Scams that target landowners share a recognizable pattern. The Federal Trade Commission, the FBI, and title-industry groups have all flagged the same behaviors, and most of them are visible long before any money changes hands.
Pressure to Rush and Move Money Off the Normal Process
According to the FTC's guidance on investment and real estate scams, fraudulent buyers fabricate urgency — pushing for an unusually fast closing without a valid reason — specifically to discourage you from verifying who they are. A related tell: any attempt to move payment "off-platform" or outside a normal escrow process, such as a request to wire earnest money directly to the buyer, to a personal account, or through a peer-to-peer payment app like Venmo or Cash App. The FTC notes that scammers overwhelmingly favor payment methods that are hard to reverse.
Anyone Who Asks You for Money Up Front
This is the single clearest red flag. In a legitimate land sale, the buyer pays you. You should never be asked to send money first — for a "deed preparation fee," a "title release fee," an "appraisal," a "processing fee," or any other upfront charge. The FTC is explicit that a party requiring a deposit from you before a normal transaction can proceed is running a scam. A real land-buying company absorbs its own costs; it does not bill the seller to receive an offer.
A Buyer (or Seller) Who Will Not Verify Their Identity
Both the FBI and the American Land Title Association warn that the fastest-growing land fraud involves impersonation — and the impersonator's hallmark is avoiding any verification of who they are. According to CertifID's analysis of seller-impersonation fraud, the warning signs include a party who will only communicate by email or text, refuses to meet in person or even on video, insists on using their own notary, and presents identification that "seems legitimate at first glance." If the company on the other end of your deal resists routine identity verification, that is a reason to stop.
Deeds, Notaries, or Paperwork That Look Off
The IC3 public service announcement on parcel-owner impersonation lists specific document red flags: deeds notarized in a foreign country, unusual or inconsistent paperwork, and communication only through VoIP phone numbers or free email accounts. The FBI's Boston field office has separately warned that quitclaim deed fraud is on the rise — a quitclaim deed transfers whatever interest the signer has with no warranties, which makes it the instrument of choice for someone with no real interest to convey.
Why Vacant Land Is Specifically Targeted
It helps to understand why you are receiving these offers in the first place. According to the FBI and ALTA, criminals deliberately select vacant lots, farmland, and unoccupied parcels — often ones with no mortgage or lien — because no one lives there to notice activity. The IC3 reports a roughly 500% increase in vacant-land fraud over four years. The defensive habits below protect you whether the threat is a fake buyer contacting you or a fake you trying to sell your land to someone else.
How Do You Verify a Land-Buying Company Is Legitimate?
Vetting a buyer is not complicated, and most of it can be done from your kitchen table in under half an hour. Here is the checklist.
1. Look Up the Business Entity with the Secretary of State
Every real land-buying company is a registered business entity. Go to the Secretary of State (or equivalent business-filings office) for the state where the company is organized and search their free business-entity database. You are confirming three things: that the entity exists, that its status is Active (not dissolved, suspended, or inactive), and that the name on the offer matches the registered name. The search will also show the company's registered agent and formation date. Always use the official .gov state website — third-party sites charge fees for information the state provides free.
2. Check the BBB and Search for Reviews
According to the Better Business Bureau's guidance on researching a business before you buy, you can search the BBB Directory by company name, phone number, website, or email to pull up a Business Profile that shows the company's rating (A+ to F), complaint history, and how the company responded to those complaints. The BBB recommends going further: search the company's name plus the words "review," "scam," "fraud," or "complaint" and see whether feedback appears across multiple independent sites. A real company with a closing history leaves a trail; a fresh shell built for one scam usually does not.
3. Demand a Signed, Written Purchase Agreement
A legitimate offer is documented. You should receive a written purchase and sale agreement that identifies the parcel by its legal description, states a firm price, names the buyer entity, and spells out who pays closing costs and how earnest money is handled. A verbal "we'll give you cash" with no paper behind it is not an offer you can verify or enforce. If you want to know exactly which documents a real transaction generates, our guide to the paperwork needed to sell land lays out the full set.
4. Confirm the Closing Goes Through a Reputable Title Company or Attorney
This is the structural safeguard that makes everything else work. A real land sale closes through a neutral, licensed third party — a title company or, in attorney-closing states, a real estate attorney — who runs a title search, holds funds in escrow, and disburses money only when every condition is met. Ask for the name of the closing agent and confirm it is a real, independently verifiable company. ALTA and CertifID both stress that the title or escrow company is the control point where identity is verified and funds are protected. If a buyer wants to "close" without any title company or attorney involved, that is not a closing — it is a setup. For more on the closing professional's role, see our guide on whether you need a lawyer to sell land.
5. Verify How and Where the Money Moves
Per ALTA's wire-fraud resources and Barnes Walker's guidance on real estate wire fraud, you should independently confirm all wiring and disbursement instructions by phone using a number you looked up yourself — never a number or link supplied in an email. Earnest money should go to the title company's or attorney's escrow account, and your proceeds should come from that same escrow at closing. Money should never flow from you to the buyer.
Green Flags vs. Red Flags: What a Legitimate Land Buyer Looks Like
Most deals sort themselves into a clear pattern once you know what to compare. Use this side-by-side as a quick gut check on any offer you receive.
| Signal | Green Flag (Legitimate Buyer) | Red Flag (Likely Scam) |
|---|---|---|
| Upfront fees | Never asks you for money; buyer pays you | Requests a "deed," "title," "processing," or "appraisal" fee from you first |
| Earnest money | Held in escrow by a licensed title company or attorney | Wired "directly to the buyer," to a personal account, or via Venmo/Cash App |
| Written agreement | Signed purchase agreement with legal description, firm price, and named entity | Verbal promise, vague terms, or pressure to sign without reading |
| Identity & contact | Verifiable business, real address, willing to be reached | Only email/text, VoIP number, refuses to meet or verify, per CertifID |
| Closing | Through a reputable title company or real estate attorney | "We'll handle the deed ourselves," no neutral closing agent |
| Business record | Active Secretary of State entity, BBB profile, online reviews | No entity on file, no reviews, brand-new with no history |
| Pace | Reasonable timeline; explains each step | Manufactured urgency to "close today," per the FTC |
If managing this vetting yourself feels like more than you want to take on, you can request a no-obligation cash offer from Jerez Land — every offer is a firm written number, earnest money is held by a licensed title company, and we close through a reputable closing agent who handles the deed, title search, and disbursement.
How Do Legitimate Land-Buying Companies Actually Make Money?
Understanding the business model removes a lot of suspicion. A legitimate cash land buyer is a principal, not a middleman skimming a fee from you. The company makes a firm written offer, signs a purchase agreement, and buys the parcel outright. From that point forward the buyer — not the seller — carries the risk and the costs: property taxes and other carrying costs while the land is held, marketing and listing expense to resell it, and the resale risk that the land may take a long time to sell or sell for less than hoped. The buyer's potential return comes from successfully reselling the parcel later, not from any fee charged to you.
That structure is why a legitimate buyer can close fast and pay closing costs while still asking nothing from you up front. It is also why each offer is parcel-specific and individually priced — a serious buyer evaluates your exact lot's access, shape, zoning, and marketability before committing to a firm number, rather than quoting a one-size-fits-all figure sight unseen. If you are weighing this route against listing with an agent, our comparison of a cash buyer vs. a land listing agent breaks down the trade-offs, and if you simply want to understand what your parcel might be worth, see how much your land is worth.
What Should You Do Before You Sign Anything?
Run the same short routine on every offer, no matter how good it sounds.
- Slow the deal down. Urgency benefits scammers, not you. The Michigan Department of Attorney General's real estate scam alert and the FTC both note that legitimate parties will not punish you for taking a day to verify. Anyone who can't tolerate basic due diligence is telling you something.
- Verify the entity and reputation. Pull the Secretary of State record and the BBB profile, and search the company name with "reviews," "scam," and "complaint."
- Get it in writing. No signed purchase agreement, no deal. Read it. Confirm it names a real buyer entity, states a firm price, and identifies the closing agent.
- Confirm the closing agent independently. Call the title company or attorney using a number you found yourself, and confirm they are handling your file and holding any earnest money in escrow.
- Never pay to sell. If at any point you are asked to send money — for any reason — stop. A legitimate buyer pays you; you do not pay them.
Knowing who normally pays at closing also helps you spot when something is off — our guide on who pays closing costs when selling land explains the standard arrangement, and our breakdown of how long it takes to sell land sets a realistic timeline so manufactured urgency stands out.
If you would rather work with a buyer who passes every item on this checklist, Jerez Land makes firm, written, parcel-specific cash offers, holds earnest money with a licensed title company, and closes through a reputable closing agent — and we never ask the seller for a dime up front. To see a real number for your parcel, request a cash offer or browse more seller guides on our blog. For a deeper look at how the legitimate side of the industry operates, our guide to companies that buy land for cash is a good next read.
Frequently Asked Questions
Are unsolicited cash offers on land always a scam?
No. Many legitimate land-buying companies source parcels by mailing or contacting owners directly, so an unsolicited offer is common and often real. The offer's source — not the fact that it was unsolicited — is what matters. Verify the company through the Secretary of State and the BBB, insist on a signed written purchase agreement, and confirm the deal closes through a reputable title company or attorney. A legitimate unsolicited offer will survive that scrutiny; a scam will not.
Should I ever pay a fee to a company buying my land?
No. In a legitimate land sale, the buyer pays you — you should never be asked to send money first for a "deed preparation," "title release," "appraisal," or "processing" fee. The Federal Trade Commission identifies any demand for an upfront payment from the seller as a scam signal. A real land-buying company absorbs its own costs. If you are asked to pay anything to receive or complete an offer, stop the transaction.
How do I verify that a land-buying company is real?
Search the company on the Secretary of State business-entity database for the state where it is organized and confirm the entity exists and is in Active status. Look up its Better Business Bureau profile and rating, and search its name online with words like "review," "scam," and "complaint." Then require a signed written purchase agreement and confirm that closing will run through a reputable, independently verifiable title company or real estate attorney. Most of this can be done in under 30 minutes.
What is seller impersonation fraud and how does it affect me?
Seller impersonation fraud is a scheme in which criminals impersonate the legal owner of a vacant or unoccupied parcel and try to sell it without the real owner's knowledge. According to the FBI's Internet Crime Complaint Center, vacant-land fraud has risen sharply, with criminals using fake IDs, VoIP phone numbers, and free email accounts. Because vacant lots are the prime target, owners should consider enrolling in any property-records alert service their county recorder offers, which notifies you if a document is recorded against your property.
Why should earnest money never go directly to the buyer?
Earnest money is a good-faith deposit meant to be held by a neutral third party — a licensed title company or closing attorney — in escrow until the conditions of the sale are met. Sending it "directly to the buyer," to a personal account, or through a peer-to-peer app removes that neutral safeguard and is a tactic flagged by ALTA and CertifID in seller-impersonation and wire-fraud cases. In a legitimate deal, money is held in escrow and disbursed by the closing agent — it does not flow from you to the buyer.
How do I protect myself from real estate wire fraud at closing?
Independently verify every wiring and disbursement instruction by calling the title company or attorney at a phone number you looked up yourself — never a number or link contained in an email, which may have been altered by a fraudster. According to ALTA and Barnes Walker, wire instructions should never be trusted from email alone, and you should confirm them verbally before sending or receiving any funds. If you suspect wire fraud has occurred, contact your bank immediately to request a recall and report it to the FBI's IC3.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or professional advice. Laws and regulations vary by jurisdiction and change over time. Always consult with qualified professionals before making land purchase decisions. Jerez Land is not responsible for actions taken based on this information.