Who’s Your Seller?
Who’s Your Buyer?
Latest Seller Scam
There has been an alarming increase in the number of transactions involving sellers who own property in Florida, yet reside overseas. The most common occurrence involves vacant lots as keys to access are not an issue. The scam starts when forged identity documents are created and the imposter contacts an agent to list the vacant lot for sale without the actual owner’s knowledge.Typically, the imposter communicates through email, however, many times disposable cell phones are used. Before accepting the listing from a foreign seller, consider taking the following steps:
1. Seek to contact the Seller at his last known address on the tax rolls.
2. Google the Seller in his hometown to verify a legitimate phone number.
3. Insist that the listing agreement be mailed or sent overnight to the address listed on the tax roll.
4. In addition to requesting a passport, consider verifying a second form of identity such as a driver’s license.
5. Insist that the deed be executed at the U.S. Consulate in the country where the seller resides. Explain that the closing agent can no longer accept a deed acknowledged by a Notary Public or Civil Notary of that country (Often times Notary Seals can be “bogus”).
6. Recommend it is best to appear at closing and receive proceeds in person. If not practical, request bank contact information and a bank contact person to independently verify prior to any funds being wired.Assure the Seller you are verifying facts for their protection. By taking these simple additional steps at the time of listing a Foreign Seller’s property you are not only protecting both the buyer and the seller, but yourself as well!!
Latest Buyer Scam
Numerous title companies and even worse unsuspecting attorneys have been burned by this scam. Here’s how it works:
A potential buyer who has no connection to a referral, contacts the realtor explaining they are interested in purchasing property in the community where the realtor transacts business. They would like additional contact information regarding who the realtor would recommend as a closing agent. The next step is the contract offer and deposit. Price is seldom negotiated (a big red flag should go up), however, a contingency is always written into the contract.
After the contract is accepted, deposit monies are sent (typically official bank drafts are overnighted). The closing agent deposits the funds (even the local banks are convinced the check is legitimate). The closing agent is credited funds from his or her bank. Next, an issue always arises during the contingency period. The buyer then requests his funds be wired back to him. After verifying with the local bank the funds are in the escrow account, the closing agent wires back the funds, less nominal expenses for inspections, title searches or other minor matters. Sure enough, within 24 or 48 hours of wiring the funds out, the bank discovers the provisional credit and acceptance of the deposit was based on a fraudulent bank check. The closing agent is then stuck with the debt and the realtor unnecessarily wasted time and effort and inadvertently participated in the scam.
Next time you receive an unsolicited email, ask for the buyer’s phone number and speak to the prospective buyer. Ask a number of questions. Google the individual and area code. Most scammers will not provide a land line phone number and if a number is given, it is typically from a disposable cell phone. If you have any skepticism I would encourage you to do what I do…click report spam. All of us are too busy to deal with this nonsense. As Samuel Johnson eloquently penned…truth invites examination.
Law Offices of Ronald S. Webster
985 N. Collier Blvd
Marco Island, FL 34145
239-394-8999 Phone
239-394-3511 Fax
In the age of the Internet, identity theft has found its way into an increasing number of real estate transactions in the State of Florida. Perhaps you are aware of these scams, however, if you are not I want to give you a quick heads up.
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