Buyer Beware

Wire fraud is an increasing problem when it comes to real estate transactions. Cyber criminals are experts at hacking email accounts and sending emails with fake wiring instructions. These emails can be convincing and sophisticated. Once funds are wired to a fraudulent account, the money is gone and there is no recourse unless something is done immediately. 

You should never send personal information, such as financial information, via email (that is not encrypted) or any other unsecured electronic communication.  Different e-mail provides have different security protocols.  A popular e-mail security protocol is Transport Layer Security (TLS), which encrypts e-mail.  If both sender and receiver use TLS, then the e-mail is encrypted.  Ecrypted e-mails do not always require a log-in and password.   

It’s also important to always confirm wiring instructions with your real estate agent in person or by phone using a recognized phone number that is not found in the potentially fraudulent email. Origin Title works closely with agents to correctly clarify wiring instructions and any other potential issues that could arise. 

If you think you’ve been targeted in a wire fraud scam, notify law enforcement, your lender, the title company and your agent as soon as possible. 

The average home buyer or seller likely does not know about scams in the real estate world. The most common scam in real estate is wire fraud during closing. On instances of wire fraud i poses as an agent in order to divert closing funds to a fraudulent account. The Buyer would receive an e-mail from the fraudster claiming to provide the closing attorney’s wire instructions.  The wire instructions are to the criminal’s account and the closing attorney never receives the buyer’s funds.  Surprisingly, these scams are very common. Communication from a hacker can look authentic and even contain personal information. 

Once a wire transfer is initiated, itis very difficult to cancel and get your money back. Wire fraud will not only delay the closing, but can force you to lose all of your closing costs. 

Origin Title and Escrow is on your side to protect you from scams like this one. We send most all emails with encryption, protecting the content from being read by another other than the intended recipient. 

Most people buy a house two or three times in their lifetime, and perhaps refinance another couple of times. When refinancing, you may have the best loan in the world, but if it’s not closed or reviewed properly, you could lose hundreds or thousands of dollars.  

One area where borrowers can lose money is with intangible tax.  Borrowers are often surprised when refinancing that they are charged intangible taxes again! The State of Georgia charges $1.50 for every $500 of the loan amount.  But there is a  way that can save you hundreds. If your previous loan has not been sold, you can refinance with the same lender and only pay the intangible tax on the difference between the current principal balance of your loan and the new loan amount.  This is a small detail that could  be missed, but it is one of many things on the Origin Title checklist, to be sure the borrower receives every available advantage.

Choose a reputable and detailed closing attorney when refinancing to make sure you get every discount possible. 

In Georgia, all property records are public. Deeds, liens, mortgages and tax information are available to anyone who wants to pull them. With records being public, purchasers will know they are getting full ownership of the purchased property, and public records also let potential buyers know any restrictions that might be on the land. 

But we must be reminded that the county clerks do not review documents to make sure they are valid or legal. Clerks simply record anything that has a notary and a witness. It is the attorney’s job to review those documents to make sure they are legal and binding. 

There are plenty of fraudulent deeds and liens on record, so having title insurance is your best protection against issues that can remain concealed even after a thorough public record search. 

When a person buys a house or refinances real estate, the warranty deed and mortgage are filed at the courthouse and become public record. Anyone can look up a deed or mortgage to find out how much their neighbor borrowed against their house, and even for how much it was purchased. These public records are the reason people get swamped with junk mail when they refinance or purchase a home. 

Have you ever bought something and then found the same item much cheaper soon after? When buying a home, DO NOT pay any company $89 to get a certified copy of your deed. This is a scam that fools people into paying for something they don’t need. You will receive the original deed at no extra cost. In Georgia, if there comes a time when you need a certified copy, you can get it at the courthouse for $2.50.  

Alleys are found mostly in the City of Atlanta and in older neighborhoods. In the 1980’s, the city of Atlanta decided that was too costly to maintain those alleys. They officially abandoned all alleyways, except for a few specific ones which have been historically maintained. This means that the other rights-of-way were still there, but no one maintained them. Each homeowner gained ownership of half of the alleyway, but subject to an easement right for each homeowner adjacentto the alleyway.

The alleyways can still be utilized, as long as they are in usable condition.  How long does it take for that pot hole to get fixed in front of your house?  If it’s in the alleyway, it’s never going to get fixed unless the owners do it themselves.