An LA Times article  "If Offer To Buy Seems Fishy, the Money Might Be Illicit"  warns home sellers to be wary of buyers appearing out of nowhere with offers to purchase - and the number one red flag?  NO REALTOR INVOLVED!

According to the article, Washington law-enforcement officals suspect that money laundering using real estate purchases is becoming more common, and they are considering adding real estate brokers to the group of financial institutions required to file a report when they suspect a suspicious transaction.

They also report that mortgage fraud and money laundering are often connected. Where mortgage fraud usually entails buying a property with a fake appraisal at an inflated price, then flipping and running; the money launderer often lives in the property or has someone live in it. They may continue to make payments for a while, giving it all the look of a normal transaction, then eventually sell it and graduate to an even larger purchase to add distance to the original money source.

While the seller isn't likely to be punished for an unsuspected involvement, they offer tips to protect sellers (and brokers, if they are involved) from becoming victims.

Indicators of a fraudulant transaction include:

• No broker or agent involved
• A Buyer who is in a hurry and ready to buy immediately, often with cash.
• Buyers funds being wired from another account or another country.
• No bargaining about price, and little interest in the date of vacating.
• Little or no interest in viewing property or involving an inspector.

This is just another reason that it is a wise move to sell or buy a house WITH a real estate agent involved.  The waters are too murky for most non-professionals to safely navigate!

File a Suspicious Activity Report (SARS)

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