that they were not permitted to activate utilities in their name until escrow had officially closed. When buyers move in early or transfer utilities before the sale is finalized, they may unintentionally assume responsibility for the property before they legally own it. This can lead to disputes over damages, gaps in insurance coverage, and unexpected expenses. Such risks can jeopardize the transaction and lead to financial losses for both parties involved. All buyers must adhere to the purchase agreement and closing procedures to avoid costly financial risks.
Fraudulent Buyers
A real estate agent was representing sellers whose property had been on the market for several months prior without attracting a buyer. The sellers were pleased to receive a cash offer from a couple for the $400,000 residence. The buyers submitted a proof- of-funds letter from a reputable brokerage firm. During the home inspection, the buyers’ extended family was present in large numbers, creating an atmosphere reminiscent of a formal open house. Later, the brokerage informed the agent that the proof-of-funds letter contained a forged signature, and then the prospective buyers disappeared. The real estate agent now makes it a point to verify proof of funds and pre-qualification letters by directly contacting the issuing bank to confirm the authenticity of the documents and ensure the buyer’s financial capability before moving forward with the transaction.
The Cost of Buying Without Proper Research
Without the involvement of representation, a woman purchased
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