Beware of sham buyers
Mr. Feichthaler: I thought I would attempt to sell my house in Southwest Cape Coral on my own, but I needed the exposure of the Multiple Listing Service. So, I signed on with a local low-cost listing service, and the property was online. I received an email from a couple from Japan that offered to buy my house, cash, sight unseen! The deposit of $20,000 will follow by cashier’s check, they said. The contract with the offer followed soon after, containing all the terms as promised. Should I sign the contract?
– A.D.
Dear A.D.: There are few things more exciting than getting a full price cash offer from a buyer on a property. First, you will want to have an attorney look over the contract to make sure there is nothing buried in the fine print that could cost you a lot of money.
More importantly, the situation you describe above has many characteristics of a sham buyer. Although this may not be the case here, all sellers and Realtors should consider taking certain steps to confirm they are dealing with a legitimate buyer. Based on the above, I assume you have only dealt with the buyers over the computer. Request they send you a copy of their passport proving their identity. Generally, the cashier’s check from Japan is the biggest warning sign. My firm has received several such checks, typically written on a bank in Canada, that purports to be a cashier’s check in United States currency. The checks look very real, but they are often a forgery. The hope of the scam buyer is that you will deposit their check, then have a reason to request some of the funds back. The two main ways is to send significantly more than they promised, saying they made a “mistake,” and to wire them the excess funds back. Or, they may claim there was a family emergency that requires immediate funds, and can you send some back. In the meantime, the foreign check is getting cleared over a 3 to 5 -period. They hope that you send the funds, only later finding out you never had the funds to begin with.
There are many legitimate foreign buyers, and it is a pleasure to welcome them into our community. However, whether foreign or domestic, anyone willing to buy an expensive house, sight unseen, for cash, should be carefully scrutinized. Under no circumstances should you ever send funds back in the circumstances outlined above.
This is a situation where professional advice may be a small price to pay to avoid a substantial mess.
Eric P. Feichthaler has lived in Cape Coral for 27 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 13 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.