Scam Artists Use Unusual Contracts

to Prey on Sellers

Las Vegas Real Estate

 

Local attorney advises professional counsel before signing documents

 

"Don't sign anything unless it's understood. If not, ask questions. If the explanation is unsatisfactory or confusing, refuse to sign until there is an adequate explanation." That's some of the best advice you can get when you're buying anything of any significance. In reading an article by Albert G Marquis, it becomes an excellent warning for you sellers who will consider "carrying the paper," or carrying the loan on the house you're selling. While this does expose your home to more buyers, carrying paper has its inherent risks.

Let's say you're selling a house and you've agreed that instead of obtaining a loan from a bank, a purchaser agrees to pay you $1,500 per month until the entire debt plus interest is payed. If the purcahser skips payments, in order to forclose on them, you would first have to sue them and obtain a court order. If they file bankruptcy, sellers you may go without payment for several months. Wouldn't you much rather have a bank dealing with that? Banks know this risk, too, and also have better attorneys readily available than most of us do.

How does a seller protect themselves, then? The simplest answer is to make sure you read any document you sign. If you don't understand something, then ask for clarification. If a potential buyer offers you something that just doesn't make sense, reject it or have an attorney look it over. Many Realtors are useful for this very reason. Good Realtors will keep an eye out for your protection on every aspect of the transaction. If you're thinking of selling, call today to speak with a Realtor. (702) 277-1427 or send an email.

Marquis, Alber G. "Scam Artists Use 'Unusual' Contracts to Prey on Sellers." Las Vegas Review Journal 12 Sept 2004, 1M+.