The agent, who has a good
working relationship with the lawyer or title company, urges the lawyer or
title company to begin work immediately on the purchase. Then, the agent learns
that the potential buyer cannot complete the transaction for a credible
sounding reason, like the death of a purchaser. The potential buyer or his heir
immediately requests a return of the funds submitted only a few days before.
Here's the scam -- the lawyer
or the title company returns the funds without waiting for the original deposit
to "officially" clear, only to discover later that the original
cashier's check was a fake. Those who have been victims of this type of scam
have had to pay a significant amount of money to remedy the deficiencies in
their trust accounts.
Realtors, Real
Estate Lawyers, and Title Companies need to be aware of any such scam.
Banks are required by law to make funds available within certain proscribed
time limits. Yet, although bank personnel might confirm that a check has
"cleared" locally, that does not necessarily mean that the funds have
been fully reconciled.
MORAL OF THE STORY: Never
return any escrow funds until you are certain that the funds have actually
"cleared."
Contact me at 434-951-0858 or Tucker@TGBLaw.com
if you have questions. Thank
you for allowing us to send you this email.
William D. Tucker,
III
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