You may already be aware of scams being reported in our area, and to give you more indications of the types of things to watch for, here’s another example.

Jim Albertson, the broker at LifeStyle Properties in Leawood, has reported a recent scam discovered by his office. Like others recently locally, it involved an overseas buyer and receipt of an unusually large sum to be held in escrow accounts.

LifeStyle Properties received a bank draft in the amount of $150,000 drawn on a Canadian bank from an overseas buyer from Japan. That alone was a red flag and there were several other things that caused suspicion, including the fact that the buyer had been told a $5,000 earnest money deposit would be required. Contracts had been only partially completed at the time the large check was received. Additionally, the letter accompanying the bank draft was printed on paper that was not an authentic-looking letterhead and a check of the phone number on the letter verified that it was actually a cell-phone number. 

As a real estate business veteran, these and other red flags prompted Jim to track down the correct contact information for the Canadian bank. A call to them verified that the overseas buyer had no account with them.

Please beware of unusual circumstances such as these. A wise course of action is to require certified funds on deposits or quick closings. Similar scams have been reported to the Missouri Attorney General’s office.