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I just read a report dated yesterday stating that recently title companies in nine states have reported receiving counterfeit checks drawn on Canadian banks.
The following facts were present in each reported instance:
All cash offer to purchase.
Seller had never met the Buyer.
Buyer had never seen the property.
Buyer is located outside the US.
The report recommended that all affiliated closing agents refuse to accept checks drawn on a foreign bank, and in place insist on a direct wire transfer.
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Be aware that this may also impact timeshare transactions and closings, as the four reported commonalities occur in many timeshare purchases.
I'm assuming the goal of the fraudulent party is to try and use the first purchase contract to flip or assign the sale to another party- and then they run with the third guy's money!
As always, just try to exercise caution and use common sense! Understand that in many cases- it can easily be four to eight weeks before you are notified that an international check did not clear..
I'm NOT recommending that you try to discourage international buyers, but just that you ensure your closing agent is knowledgeable about the process of accepting and clearing international funds.
The following facts were present in each reported instance:
All cash offer to purchase.
Seller had never met the Buyer.
Buyer had never seen the property.
Buyer is located outside the US.
The report recommended that all affiliated closing agents refuse to accept checks drawn on a foreign bank, and in place insist on a direct wire transfer.
***********
Be aware that this may also impact timeshare transactions and closings, as the four reported commonalities occur in many timeshare purchases.
I'm assuming the goal of the fraudulent party is to try and use the first purchase contract to flip or assign the sale to another party- and then they run with the third guy's money!
As always, just try to exercise caution and use common sense! Understand that in many cases- it can easily be four to eight weeks before you are notified that an international check did not clear..
I'm NOT recommending that you try to discourage international buyers, but just that you ensure your closing agent is knowledgeable about the process of accepting and clearing international funds.