Could this happen to you??? 
Agent # 1 has customers who do not speak English thus creating some major language barriers. All paperwork and communications go through another couple who do speak English, they act as the interpreters/representatives...and they interpret all the information for the actual buyers. The Agent works with the buyers and their representatives whose names are Amil and Leticia Brooks...communications were very difficult but she provided them with the required agency disclosures and buyer agency agreements.
She also gave them blank copies of a Purchase and Sales agreement so they could get familiar with the terms of the contract that they would be using.
They viewed many homes together over a 2 month period but for one reason or another no paperwork, agency disclosure or BA agreement was ever signed by the buyers or their interpreters. Although the agent insists that she verbally explained it to them and gave them the paperwork to read so they could take their time and understand what they were signing.
The language barrier proved difficult but the Interpreter's Mr or Mrs Brooks, accompanied the buyers on every showing, seemed to understand everything, did all the talking and made all the decisions. The agent continued to work with them even though she had never received the legally required signed disclosures back.
During this period of time they saw one house 3 times and there seemed to be a strong interest in it. They had a lot of questions for the listing agent who was present during one of the showings.
Even though there was interest in the property the Interpreters instructed the agent to keep on searching for the perfect property. A month or so goes by and they continue to communicate with each other via e-mail and phone messages but because the buyers were sick and then the interpreter's were sick... no actual showings took place during that time frame. She continued to send listings and e-mails back and forth, the buyers were still looking at everything on the net but hadn't made any appointments to look at any more homes with the agent.
Meanwhile....back up 3 weeks....
The listing agent (agent #2) of the home shown 3 times by agent #1 gets a call from a co broker... we'll call him agent # 3 who tells her he will be faxing an offer on one of her listings. She does not recognize the co-brokers name or even that he showed the property.
She asks if he showed the house?
He... "No"
She... "Have the buyers seen it?"
He... "No but they have been watching it and know people in the neighborhood"
She... "Are they buying it sight unseen?"
He... "Yes"
The offer comes in and after negotiating a bit the home finally goes under agreement. The accepted offer is lower than the seller had hoped for and with a $23,000 dollar credit to the buyers for closing costs. Everything is signed and all parties go forward.
At the Home inspection the listing Agent(# 2) meets the inspector at the property and both the co-broker(#3) and the buyers fail to show up. The inspector states that this is unlike Leticia as she always shows up. Bells go off in the listing agents head...something sounds familiar.
Agent # 2...thought the name Leticia sounded familiar...and when she went back to her office she checked the Purchase and Sales Agreement to see if the one of the buyers was named Leticia. They were not.
Still puzzled about the name Leticia she looks through her co-broke showing records and remembers once accompanying a co-broker who had showed the the home 3 times with a group of people and the name Leticia stood out because all the other names were hard to understand.
She tracks down that agents information, phone number and calls her. She asks her (agent # 1) what ever happened to her customers that she had showed this home to 3 times??? Agent #1 responds " Oh they are still looking, we haven't physically been out in a while because they've been sick but I'm sending them tons of listings" and she tells her what her customers name are and the names of Leticia and Amil Brooks who are the buyers interpreters.
Shocked they realize that the buyers are the very same buyers that are named on the purchase agreement and the co-broker is a Amalle Brooks...not Amil Brooks...could this be the same person? How odd the names are so close and the name Leticia that the inspector mentioned??? What in the world was happening here???
Can you guess what happened here??
A&L Realty is not licensed to practice real estate in the State of New Hampshire or anywhere else for that matter. Amil or Amalle Brooks does not hold a real estate license. Leticia Brooks is not licensed in the state of New Hampshire.
The scam artists stoop to a new level...These people committed fraud...Think twice before you give out blank copies of contacts to anyone.
Don't recognize the Co-broker your dealing with? Call the real estate commission and find out if they are licensed to practice Real Estate.
This could happen to anyone of us and our clients...Beware the scam artists!!!
Monika McGillicuddy
Serving Southern New Hampshire and Rockingham County
Monika McGillicuddy Real Estate Training Website
Hampstead NH Real Estate
603-548-7728
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Oh My God Monika!
I can hardly wait for part 2.
Wow! That is amazing!
Wow...I finish editing and I'm featured!! This is such a complicated story... I wanted to keep it easy to follow. Can you imagine..being these agents??? OMG is right!
Laurie and Colleen ...Thanks so much for reading and of course Jay :)
I hope you'll be posting part two soon! I am really interesting in hearing the rest of the story.
I'm guessing we will see more and more of this...
Eye opener. Thanks for the post
Lesson of the day, thanks so much, part 2...
Why do agent go forward with people who present scenarios??? Are they so hungry that they risk their license for the "possibility" of a commission??
They'd be better off staying at home contemplating their navel. And so would legitimate buyes and sellers and the rest of the real estate industry.
1. Do NOT deal with people you don't understand and who don't understand you. WAY too risky.
2. Always check people out thoroughly. Before I deal with any agent, I check their license status, their production, etc. I want to know about the "agents" with whom I'm dealing. A buyer or seller is at great risk in a real estate transaciton. The agent and their broker can lose their license.
GEEZ. Do NOT give our contract to anyone. I can't believe the scenario described. It's just got too many red flags to believe that it really happened.
Lenn
Ouch. Scary stuff, Monika. I always check my licensing organization for every agent that submits an offer, just to be sure they ARE licensed, ARE employed by a licensed broker, and to see if there are any other issues. No problems yet, but your example serves to remind us there are scammers everywhere!
Thanks for your pot - anxious to see part 2.
Jeff
Lenn....Interesting thing is Agent # 2 never met #3...the contract was faxed, all negotiations was via phone...once agreed upon clean contracts were drawn up and delivered. No actual face`to face meeting. Very true and up here very easy to have happened.
In the words of a very wise cartoon character - THAT'S DESPICABLE!!
Let me see if I understand this. Amalle and Leticia are acting like agents to their foreign buyers and are acting as interpreters to agent #1. So they are using agent #1 to get them into homes because I assume they don't have a lock box key? That's pretty convoluted. Agent #1 is the one who has been defrauded. How would one protect themselves from this? Do closing attorneys check on licenses before cutting a check to a broker? What are the penalties that Amalle and Lecticia could face?
I'm looking forward to part 2.
Hmmm.... I give buyers a copy of the blank contract quite often so they can read over the details well ahead of writing the offer.
Ava, Kaye, Meg and Krisy...Very important lesson here. I've given out blank contracts so that buyers could feel comfortable with them but I've always reduced or marked them as a COPY...never thought of something like this happening. Both agents were used and victims. Part 2...I'll know tomorrow.
Jeff...Very scary indeed. I really have never checked...but from now on I will! I think the fake agent blew off the home inspection on purpose as the Listing agent might have recognized him....or maybe she wouldn't have who knows.
I too always check out the agent on the other side of an offer if I don't already know them, simply because I want to know who I'm working with and what their experience is (though frequently the ones that are the biggest problems in terms of not knowing what they're doing turnout to be not agents, but brokers who've been such for two or three decades, sad to say). We can do that very easily online with our state real estate commission.
And I, too, have given blank contracts to buyers so that they can read them at their leisure and go over them with an attorney if they want to (only had one that ever did, and he had his attorney read every single word of every single thing that he might be going to sign, but he was on his way to Iraq and leaving his wife here so I could understand completely his concern for everything being taken care of in that way). But I'm for sure going to get a big COPY stamp before I do that again!
Ines...Yup very despicable!!!
Tim...Agent # 1 was used...for months. She showed them tons of houses in a 2 month period...they got a lot of info out her...forms, disclosures, contracts you name it.
Dan and Sandra...I've done the same many times...just mark them as a COPY or reduce them and you'll be okay.
Frightening. Thank you for the post. Ask,Ask ask...suspect suspect suspect.
Nice world we are in.
Tricia...In some of our areas it is very common to not see the other agent sometimes not till the closing table. Everything is via fax and e-mail...I've also had offers from buyers sight unseen. Agent # 2 didn't put it together till after the home inspection...and Agent # 1 she thought she was still working with buyers...she was searching properties and sending them to the buyers. She was clueless...they both were really.
Thanks John....Very good lesson for us all.
Monika.... maybe I am just tired and or under the weather some...... but my mind is worn out for a so-called math equation.... lol But what took place, who was gaining from what? I missed the fraud part. From reading it, I could follow that something wrong was taking place. What stood out to me was the$23,000 is seller credit for the buyers closing costs.... that's impossible.... lol That would have been my read flag. Even with programs that allow 6% seller help, the house first would have to be worth almost $400,000 or more. 2nd.... I have never seen anything more than $11,000. 3rd..... somebody would be making a lot of money in that deal or a major kick back....
Monika...
I hate to say this, but, this doesn't surprise me that much.
Why? We're in Florida. This stuff happens all the time around here.
We are lucky to have a closing agent who would spot it before it funded :)
Jeff...I think you got most of it right...the fake agent was trying to gain # 1 a commission and # 2 maybe even the 23,000 which did equal 6% . In NH it is illegal to pretend you're a real estate agent...remember he was also the interpreter ....
I'm sorry it is a very complex story and I tried to write as simply as I could. Part 2 gets better
TLW...Wow I had no idea that this happens and was shocked when I found out about this OMG...how sad!!!
I'm very much looking forward to part 2. In Maine, either agent can hold the deposit. I'm guessing that Leticia's company has that check too.
Rick....The listing agency has the deposit...all though it bounced a few times. A&L Realty ....the fake company did not hold the deposit. Imagine if they did??? The deposit was very small money, $1,000 upon acceptance of the offer and $1,000 upon satisfactory home inspection.
Woah, Monika! I am almost lost, so I am awaiting #2. I really do not understand people sometimes...
Oh Mariana...Sorry I tried to keep it simple...Part 2 is pretty complex. I think these people had a good scam going till they got caught!
I went back and read your post 2 times--this whole thing is wacky to say the least. Sure am looking forward to the next part.
Wacky is right Diane...pretty bizarre to say the least....were you able to follow it? I re-read it like 6 times trying to make sure it readable????
What a story!! I will pass along what I give to buyers if they want a contact to read over. I use highlghter and write SAMPLE, at least 3 times per page, on all pages. That way the can see all the words, but cannot be used or copied. Also, our local MLS has contracts online and when you print them, it has your name at the bottom of each page.
Monika - this is just all way too weird. The thing that would have jumped out at me would have been the $23,000 seller credit. Like, Jeff, I'm missing the actual fraud and scam part. Clearly there were bad things going on though. I see people doing something they're not licensed to do. Part 2 clears up the fraud and scam part? This is a hum-dinger for sure. Don't think I know this story...
Ann
It is so hard to believe stuff like this happens. Christopher Walker wrote an article on the same subject recently - you might enjoy checking out.
Now Have a Blessed Day,
John Occhi, Hemet CA REALTOR
www.JohnOcchi.com
Wow, that is scary! What in the world are they trying to pull???
Monica, great detective work. I'm amazed at what people try to get away with.
Berta...I write sample or copy on the ones I give out as well. I think the interpreters probably planned it from the get go...either that or they thought it was easy impersonate an agent make some money and be gone.
Ann...Yeah...well the seller credit didn't raise any concerns...believe it or not! The scam was the people who were the interpreters...using the REALTOR...getting contracts and then pretending they were REALTORS when they did not even have a license... basically the were scamming everyone and probably have done it before.
John...Thank you for pointing out the article...I missed that one! Looks like this happens everywhere.
Chris...Makes you wonder doesn't it.
Interesting sequence of events. I would like to share this situation at our next office meeting. Has this situation been reported to the Real Estate Board? In Oregon posing as a Realtor or licensed agent is illegal and carries ramifications.
Monika..... I have read the comments written after myself.... and what part were they scamming? Who did they scam then? What were they getting out of this if it all went through. Maybe this is the part that should have been added at the end of the blog as the Conclusion part. Sorry, not trying to make this difficult, but from some of the comments, I guess I wasn't the only one thinking.... okay, where is the scam? Where is the fraud? thanks
You know, what strikes me is that the buyers seem to be in a pickle with this sorry representation. If there truly is a language barrier, they probably have no idea of what's taking place...that it's wrong...and that they have 'agents' who are potentially putting them in harm's way.
Bend River...Yes it has been reported and A&L Realty is not licensed to practice real estate and in NH it is illegal as well to lie about it. Feel free to use it...we all need to be aware of the level scam artist will go to.
Jeff...Okay I will try and do better. # 1 A&L Realty is not licensed to practice real estate in the State of New Hampshire . # 2 Amil or Amalle Brooks does not hold a real estate license. # 3 The buyers don't speak English and who knows what arrangement they have with the Brooks. Clearly illegal acts on the part of the people claiming to be a CO-Brokers (the Brooks) when they were not licensed an did not have a firm...Fake company name. The listing agency offered a co-broke fee to the co-broker...they can not pay an unlicensed person or company...a big No-No in NH.
Scam...against Agent # 1 who worked with this group of people (4)...got them into the homes because they needed an agent with a lock box to get access. She inadvertently gave them all the paper work they would need to pull off the scam...contracts, addendum's...listing sheets..deed. They never gave her anything signed back but took the info and then strung her along while they impersonated an agent and put an offer in on the house she showed them 3 times.
Hope I cleared some of it up for you.
Leigh...The buyers...had to have known something...not sure though. I mean these people were in control of everything that the buyers looked at and handled all the communication from them to the agent. I feel bad for them...no matter what because they probably didn't understand any of it.
You actually helped these people by giving them a blank contract. I would normally look people up in the MLS or on line at DRE but in this case the names would not have come up. If I do not speak the language of the customer, I would refer it out to a Realtor that I know that can speak the language. This way I protect myself from any problems that may arise.
LOL....Joseph..I did not do anything at all! It was not me in this story but two other agents and yes she gave them a copy of the contract so that they could feel comfortable with it. The buyers came equipped with their own interpreter...one they felt very comfortable with.
Monika.... understood now... much clearer.... I guess my mind wasn't thinking 100%, since I am not a realtor and go through this in every day occurrences. thanks
Jeff..Good I tried to simplify it and it is very complex story to begin with. I do think the 23,000 is an issue...
Holy Crap! Here I was thinking that they might just have found another agent to give a lower commission to after all of your hard work!
I ran into a similar situation - a pretend agent showing rental condos in chicago and running off with the security deposit and 1st month's rent. They don't use lockbox keys in the city and often let agents pick up the keys at the front desk. I am definitely going to check agent IDs all the time now.
I always check the agent on the other side. I have run into a couple of folks with expired licenses or no licenses.
I make a habit of looking up licensees on our state website. I couldn't resist when I got one of those agents..."I've been in the business for 25 years....bla bla bla". Well, she was in the business for 9 months in Florida. She must have been licensed on Pluto before.
Monika,
Thanks for the post. These con artists are up everyday perfecting their craft. Ah to be in the rain!
Kaushik...Yeah they found another agent all right...a fake one.
Diane...Thankfully No One really was harmed here...It was all caught in time.
Randy...This guy never had a license...but he got first hand lessons on how to act like an agent...thought he could pull it off!
Chris...LOL Pluto...This guy wasn't licensed anywhere...But he near pulled it off.
Thanks William...The scams keep getting better....I would never have expected something like this.
And Happy Birthday, two hours and counting :-)
Happy Valentine's Day Monika!
Thank you Carole...so far my Valentines Day and birthday have been pretty nice :)
Thank so much Luke for the lovely flowers!!!