REALTORS® should always use caution and due diligence with any unknown buyers who cold contact the REALTOR® with a desire for a cash deal with a quick close and early occupancy.
REALTORS® should require background information such as proper documentation of sufficient available cash and identification.
For fair housing risks, best practices can mean that REALTORS® should only investigate the background of all potential buyers in a uniform manner. However, REALTORS® can always do additional due diligence on a cash buyer and/or quick to close buyer and/or early occupancy buyer as all of these are historical indicators of increased risk and potential criminal activity.
Also with a cash buyer, there is no lender so there are many protections and risk management strategies that never occur with a cash buyer which typically occur with a lender involved (e.g. credit check, appraisal report, loan application, underwriting, review of documents by many individuals, identity verification, lien checking).
A best practice can be the REALTOR® always initially meets strangers at the brokerage office where the strangers’ identification and vehicle information can be seen and formally remembered by the REALTOR® and colleagues.
Requiring a meeting at the brokerage can also deter potential criminals who often desire avoiding any record or witnesses.
SCR recommends that suspicious activities be reported to law enforcement. Media and social media are effective ways to communicate with all real estate licensees statewide. LLR SC real estate commission is also a way to communicate.
Posted by : Byron King on 5/9/18 (This information is only accurate as of 5/9/18. You must contact SCR for updates and changes to this information after 5/9/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)