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The criminal takes advantage of e-notaries and online communications, attempts to defraud the actual owner, the buyer and every service provider involved by selling the property under market value with an exceptionally quick escrow, according to a press release from the California Association of Realtors that was issued in June after the trade association received several calls on its legal hotline from agents who were suspicious that the person who signed their listing was not the actual owner.
The scam usually goes undiscovered until the sale closes and the transfer documents are recorded with the county. This scheme has particularly affected the elderly and foreign real estate property owners as there are no means to automatically notify the legitimate owners, according to state officials.
In one case, the “seller” electronically signed the listing contract, disclosures and a purchase and sales agreement with a cash buyer. The scam was averted before the documents were notarized because a family member contacted the real owner of the property after noticing it was listed for sale.
“Owners of vacant properties should check on their property on a regular basis,” Jim Hamilton, president of the Silicon Valley Association of Realtors, said. “If they live out of state or overseas, it would be a good idea to keep in touch with a broker whom they trust and neighbors or relatives who live near the property.”
Be aware of these ‘red flags’
These criminals usually use a number of tactics designed to keep their crimes from being discovered until it’s too late. The Department of Real Estate is urging homebuyers and real estate professionals to watch out for these tactics:
• Seller requests that the property be listed below market value to generate immediate interest.
• Seller requests that no “For Sale” sign be posted on the property.
• Seller requests preference for a cash buyer, quickly accepts an offer and demands a quick closing.
• Seller refuses to meet in person, preferring to be contacted through email, text or over phone and typically refuses video calls.
• Seller refuses to attend the signing and claims to be out of the state or country.
• Seller demands to use their own notary, who then provides falsified documents to the title company or closing attorney.
• Seller insists that proceeds are wired to them.
“These characteristics may not be red flags on their own, but when several or most occur, the risk becomes more apparent. Unfortunately, this scam is usually only discovered once the transfer of documents has been recorded with the appropriate county,” Hamilton said.
Those who believe a scam is occurring or are victims of real estate fraud, should report the crime to law enforcement authorities or the local district attorney’s office where the fraud occurred.
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This article was originally published by a www.pleasantonweekly.com . Read the Original article here. .