So there I was on Sunday and I receive a call from one of our new home sales offices. (we are a builder not general real estate))
"I have a customer with a good realtor we have worked with in the past interested in purchasing one of our inventory homes", the new home consultant says.
I ask about the details. It is a nice number, cash deal, closing within 30 days, substantial down payment. I say to myself, easy deal, are there any other extenuating circumstances or requests.
I ask the consultant.
The consultant proceeds to tell me that the buyer is from Canada and is requiring that the deposit be held in their attorneys escrow account. This is something I have never allowed on our transactions so I ask why. The buyer is from outside the US and would feel more comfortable with the funds in their attorneys account. I think about it for about ten minutes.
The realtor we are working with has been good and likely knows their buyer, It is a quick closing. The home will be off the market for only 3 weeks. If it doesn't close it's not a total loss.
I place a call back to the agent. "Go ahead with it, write the agreement and have the attorney confirm the receipt and clearing of funds" .
The agreement was not written on Sunday and I check with the consultant.
The consultant proceeds to let me know that the Realtor was skeptical of their customer and did some research.
They googled the name of the buyer : Seiichiro Matsubayachi
This is a scam. Yes it is hard to believe that these scams still take place in this day and age but they do.
Read several other posts online and it's always the same. Get the deal accepted and then wires funds. Terminates the deal quickly and then tries to get a refund before the checks clear.
I am not quite sure of how anyone would issue checks out prior to the originals clearing but I have seen stranger things happen.
This is a similar letter to one they had received:
"Thanks so much for your email, I will like to offer $400,000.00 on MLS# ?????? because
I love the curb appeal of this property, please send me the contract for me to sign and return immediately this will be my retirement home and it will be a cash buy
1. I will want to close on 18th July, 2010
2. I want to put down $5,000.00 Earnest money + $150,000.00 down payment towards home.
3. I want to put contingency on inspection on the contract.
My legal name is Seiichiro Matsubayachi of 2000 Sheppard Avenue, Toronto Ontario Canada M3N 2J1 and I am single, I will not be in Canada before the closing date to wire the funds to the closing attorney so I will advice you to send me the closing attorney information for a check to be drawn to give enough time for check clearance since I wont be in Canada to wire funds for closing.
My Canadian Rep Mr. Edward Brown will Issue payment in US Funds $155,000.00USD for the earnest money and the down payment for the property payable to closing attorney, the check will deliver to the closing attorney.
My Canadian Rep Mr. Edward Brown can be reach at:1-416-824-1768
Please I need the following information for the closing attorney immediately
Closing Law Firm Name...................................................
Law Firm Address.......................................................
Law Firm Telephone......................................................
Lawyer's Name...........................................................
Regards
Seiichiro Matsubayashi"
The lesson to be learned is if it sounds to goo to be true that likely it is too good to be true.
I am happy that there are savvy realtors out there googling their skeptical customers to prevent heartache for our industry, and, we all must be diligent to get to know our customers to prevent this type of fraud in the future.
Be aware out there!
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