I have come across the most bizarre situation. Yesterday I received a phone call from a woman who had just signed a lease purchase agreement. She wasn't represented by an agent and didn't quite understand the contract. (I seem to get a lot of calls from people who aren't represented by a Buyer's Agent and then call for help after they realize they're in over their heads.) I told her to send it to me and I would look it over. I'll call her Sally, not her real name.
Sally had already given $4,500 and agreed to pay $60K more than fair market value for a home. (She loved this $400K home and didn't realize it was overpriced.) She agreed to give $11,000 to these slick talkers without realizing what she was doing. (They already have her check and are "holding" it.) She agreed to things in a lease that I have never seen before, like a 25% rent increase after the 12 months and automated bank drafts that are due on the 1st and huge late fees and penalties kick in on the 2nd day. What if the 1st falls on a holiday or Sunday and the bank is closed on the 1st? The lease states that the home can be shown to prospective buyers and tenants at any time, not in the last 30 or 60 days of the lease. Sally admits she just signed it and didn't read it. These are just a few of the things.
The address on the lease is not even a valid address! The house is on a corner and the actual address is on the other street. That was one of the most shocking. Who did she give her money to? A company posing as a real estate firm, with a lovely website with lots of high end listings on it!
One of the scam artists used to have a real estate license, it lapsed more than 2 years ago. They claim their company to be incorporated in GA. It is not. They are preying on people that have poor credit and ripping them off writing bogus real estate contracts and collecting big payments. They are the middle man between the owners of the homes and the public.
In Georgia, the law states that you must have a real estate license to perform the duties of a broker. These people do not. One of the scammers even has a real estate blog on Active Rain. As of a few minutes ago, they had 52 listings on Craigslist in Atlanta.
Before you hand over your hard earned money, know who you are dealing with. These scammers seemed like professional people but in reality are not! Before you sign anything or hand over your money, verify their license status with the state. Check that before you hire someone to list your home too. It takes just a minute. There are lots of scammers out there. Be aware.
I am trying to help her get her money back. We will see how all this works out.
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If you are thinking of buying or selling a home in Atlanta contact local expert Jen Bowman, Realtor and Broker Associate with Success Realty. 404-456-5024
Great post. There are so many scammers out there. We all need to be catious. Thanks!
There is a group in Sonoma County that has several activerain members pretending to be agents but are really no more than unlicensed assistants.
The internet is a wonderful thing, but it also allows anyone to pretend to be an expert at anything.
You can check for California Licensees (among other things) on this page:
http://www.kelleyeling.com/Nav.aspx/Page=%2fPageManager%2fDefault.aspx%2fPageID%3d1573590
I have my license number on my business card. It was being passed into law and should make it easier for people to check.
Trevor, I can't stand scammers. I'd like to see them put out of business.
Kelly, thanks for posting a place for California buyers and sellers to check the license status.
Lisa, I think a law on it could be good, but criminals will still find a way around that. I never considered putting my license number on my card. That's something to think about.
Jen, have you e-mailed ActiveRain and let them know this members name and what he/she is doing?
It is so disgusting the way some take advantage of people! I do hope you notify the AR folks.
I notified AR of the people in my area and they said that they have no jurisdiction or way of filtering them out and that I should contact my local DRE.
On a second note, California is now requiring license numbers on business cards by either June or July 1.
wow - thanks for the post Jen - I think this will happen more as the economy slows
Wow ...amazing I would submit a letter to the attorney general to get them shut down immediately.
We had a scam like that about a year ago. Our latest scam, which even hooked some major real estate brokerages, was a fradulent loan scheme involving over 200 properties.