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Source: Florida Attorney General's Office Owning land is part of the American dream. Many consumers think that purchasing land is a safe investment. However, many are disappointed and come to realize that their dream has turned into a nightmare. For those who purchase worthless lots a second scam may lie ahead. Many scam artists contact consumers with worthless lots. They try to obtain advance fees for selling the lots to foreign investors. Before purchasing land or paying an advance fee for the sale of your lot consider the following: Be Wary of the Hard Sell Promises of a wonderful investment opportunity that can't fail should arouse your suspicions. In any investment there is always a risk. View with skepticism slick brochures that portray booming communities. Before purchasing land take the following steps: 1. View the property. Do not buy land over the phone or by way of the mail. Talk to residents who live in the area. 2. Look into the amount of all fees, such as real estate taxes, or community assessment fees. 3. Meet with real estate agents in the area to find out the market for this property. Ask the agent how long it would take to sell the property if need be. 4. Check with the county planning office to learn of plans for the land or property near this area that may affect land value. It would be important to know if an airport or dump is scheduled to be built in the future. 5. If the land is undeveloped, know who will be responsible for the costs of building roads, utilities or sewers. Research the Builder or Sales Agent Contact HUD, your local and state consumer office, Better Business Bureau, and state agencies that regulate real estate salespersons and contractors to learn if there have been any complaints. Find out the length of time the company has been in business. Research the public records to determine if there have been any civil actions brought against the salesperson or the developer. Obtain a Copy of the Property Report Pursuant to the Interstate Land Sales Full Disclosure Act every developer selling or leasing more than 100 lots through interstate commerce must register with HUD. The developer must provide a copy of the disclosure statement called a "Property Report" to the consumer before a contract is signed. Do I Have a Deal for You Do not send advance fees to land sales companies who promise to sell your lot to foreign investors. Many investors who have purchased lots that they cannot sell often fall prey to the advance fee scam. These investors often receive a postcard with promises of an imminent sale of your lot after the payment of an advance fee. Be advised that if you can't sell your undesirable lot, probably nobody is going to want to buy it either.
* Additional Steps To Insure You Are Not A Victim Of Fraud IMPORTANT - Since the above steps from the Attorney General's Office DID NOT help in this situation, additional steps are required in order to avoid any unpleasant surprises. * If the County Property Appraiser or Building & Zoning refuse to put in writing what they tell you, or what they do say in writing does NOT include a court stamp or seal, WALK AWAY IMMEDIATELY!!! * Record the Realtor's or Sales Agent's Sales Pitch! Be careful when recording on a hard-drive rather than tape because it is much easier to accidentally erase your recording. * Do NOT Trust the Standard FAR/BAR Form Contract. It is not possible to put all details on this contract. Attach all important details to contract as an amendment. * Use an Attorney to close the sale! * Just because you use an experienced Realtor does NOT mean much of anything in Florida since they will license anyone these days. "38 Years Experience" only helps to trick the customer, in a poorly regulated industry. * Viewing the property does NOT always help! Yes, everyone knows what a swamp looks like, 1-2 ft. of water year round. However a Wetland ONLY has surface water ONLY occasionally! The water is UNDER the ground! It took us 2 years almost to see surface water on this property for the 1st time. It is ILLEGAL to disturb a Protected Wetland. * A Geological Survey is a good idea when buying land in Florida or your house may slowly sink into the ground. * Unless you are a plant expert, GET HELP. If there is Cypress, Bay Trees, or Ferns of any kind, in Florida means PROBLEM, don't walk, but run as fast as you can away from the deal. On this property they are protected, and humans cannot share the land with these plants. * Use an independent Surveyor from the next town over! Make sure he or she has never heard of, or associates with the people you are doing business with! Our Surveyor told us "It's Buildable!" That explains why he is a Surveyor, and NOT a Contractor or Attorney. * Use EXTREME CAUTION when moving to a small town from out of state, or a big city if you do not already know people there or have lived in the area before. You may likely appear as an opportunity, and get "set-up"! Better known as: Organized Scheme To Defraud. * And lastly, the Famous Last Words of Developer Stephen F. Smith - "You Shouldn't Listen To What People Tell You or What You Hear Em' Say"
*** WARNING! WARNING! WARNING! WARNING! WARNING! WARNING! *** Currently there is NOT a single Regulatory Agency in the State of Florida which Enforces Compliance of the LAW in any Land Sales transaction RIGHT NOW! The Division of Land Sales, Condominiums, and Mobile Homes in Tallahassee, FL had this responsibility until recently. In the past the State employed as many as 20 investigators who were responsible for enforcement and compliance of the law for the entire State of Florida. With budget cuts and typical political mumbo-jumbo these 20 investigators have been reduced down to ONLY 1 PERSON? However, cases such as this are now being transferred to a New Criminal Division which investigators must wear a badge of the law that has not yet been created or established as of yet, let alone currently functioning at this time! Should you contemplate purchasing land in Florida, you will be doing so at your own risk! There are HUNDREDS of cases just like this one out there throughout the State. The State of Florida is operating in complete lawlessness right now similar to the days of the Wild, Wild West. Although all Realtors, Real Estate Agents, and Transaction Brokers are licensed in Florida by the Department of Business and Professional Regulation, once someone is issued a license there is absolutely no oversight of their business practices until a violation is committed, and a complaint is filed. On average it will take well over 1 year before the DBPR will hold a hearing after it has determined by an in depth investigation that violations of the licensee had been committed. Please see Realtors Code of Ethics & Realtors Pledge of Performance for more details. Additionally, the Attorney General and State Attorney will seldom get involved with individual cases unless numerous claims or jurisdictions have been affected by the questionable activity that would be construed as not in the public interest. If you think writing several letters will get their attention, you will be sorely mistaken. YOU HAVE BEEN WARNED! If you buy land in Florida now you are doing so At Your Own Risk! NOTICE TO ALL LAND DEVELOPERS! The 5 Florida Water Management Districts regulating development in Wetland areas issuing subdivision building permits, Northwest Florida WMD, Suwannee River WMD, St. Johns River WMD, Southwest Florida WMD, and South Florida WMD have NOT been enforcing permits for violations once issued, and originally in compliance. The only enforcement has been related to "Impact of Wetlands". However, due to the massive number of complaints for fraud similar in nature to this complaint, the State should once again begin enforcement of previously issued permits possibly as soon as the later part of 2008. SERIOUS CONSEQUENCES CAN RESULT FOR ALL NONCOMPLIANCE OF PREVIOUSLY ISSUED PERMITS. Regulatory Agencies & Help!
Federal Postal Investigator
Governor Charlie Crist HUD William P. Cervone / State Attorney SRWMD – Suwannee River Water Management District Governor Arnold Schwarzenegger U.S. DEPARTMENT OF JUSTICE United States Attorney's Office Middle District of Florida Samuel Armstrong Roger Handberg Ron Henry Douglas Molloy Robert E. O’Neil FBI Jacksonville jacksonville.fbi.gov FBI Los Angeles losangeles.fbi.gov
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