for the $400,000 house from a couple. The buyers offered a proof- of-funds letter from a brokerage firm. The buyers’ extended family turned out for the home inspection. It was like a holiday open house. Later, the brokerage informed the agent that the proof-of-funds letter had a forged signature. The would-be buyers vanished. The agent now makes sure she verifies proof of funds and pre- qualification letters.
Homes Not Researched
In a transaction without the involvement of real estate agents, a woman purchased a rural home. She found out two years later, at the time she went to list the home, that it had once belonged to a person who was in jail for producing methamphetamine on site! The revelation also obligated the homeowner to take the necessary steps of decontaminating the home and ensuring it was fit for resale, costing her a whopping $16,000 in the process.
Pre-closing Error: Large Bank Deposit Causing Delay
A couple buying a seller’s home in Winnipeg deposited $8,000 in cash into their checking account three days before closing. Their father had given them money to buy new furniture and appliances for the house. Their bank checked balances the day before, and it was “dinged,” as this particular transaction required a gift letter. The father had just travelled to the Rocky Mountains for a hunting/fishing trip, and no one could reach him. This delayed the closing by two weeks.
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