How to protect against fraud at closing of a home when paid by cash.?

Question

I will be paying for the house with a cash (not real bills but what i mean is that i am not going to get a mortgage). Part of the money is given to me by my parents so i want to be very careful. Closing is being done by the title company who is also the escrow company.
Ideally i want to pay by certified check. i want to avoid wire because when i initiate a wire request i don't get reciept
1. What documents should i recieve in the closing meeting to assure that i am safe and not being frauded.
2. The seller told me that if you pay by certified check then i will not get the keys until the check clears. This makes me suspicious. Should i not get the keys and dead at the end of the closing meeting.
3. The seller (who is also a real estate agent) told me that closing agent from title company can meet us at the sellers office and close there. The place doesn't seems neutral to me, is that an acceptable practice.
Please help i want dont want to risk my mom and dad's money.

Thanks to all of you for your knowledge and advice. Just another though, How about paying by cashier's check. That should be treated as cash. With cashier's check should i get the keys right away? Thank again people, really appriciate it. thanks

Answer 1

I think you are being a bit paranoid here. It is not unusual to withhold keys from the premises until it is ascertained that money has actually transferred hands. These days, even fraudulent certified checks are being floated around. If your money order happened to be fraudulent and you were given possession of the premises, it would take an eviction action to remove you.

The location of the closing is quite irrelevant. The same documents will be provided to you no matter WHERE you close.

You will certainly want to see the signed title deed or warrant deed (or whatever they call it there) notarized and indicating that the seller has transferred property ownership to your name. You will also want to review the title policy covering the property to insure that there is a clear unclouded title being transferred. You also may want to ask for other documentation insuring that there are no liens against the property at the time of close (although title insurance covers this.) You will get to SEE the deed, but not keep it at closing, since it most probably will need to be taken to the courthouse for docketing legally. Feel free to ask for a photocopy of it, however.

It is common for the title firm to also act as the escrow firm in such transactions.

If you STILL have fears, ask your banking facility if they will provide for a fee one of their mortgage closing agents to be present with you to 'hold your hand' through the process and help assure you that all paperwork is proper and in order.

Answer 2

If you have a real estate agent working with you (or involved in any way), the law requires them to be upfront and honest throughout the deal. Although they are technically not working for YOU (they are working for the seller) they still cannot misrepresent things.

From what you've said so far, everything sounds familiar to me as ways we have done real estate transactions in the past, and we've never been ripped off. It's true that if you pay by certified check that you don't get the keys right away. The trick around that is either have your bank (or preferably lawyer) wire the money to closing or sign the closing papers a few days early.

It's also an acceptable practice to close the deal anywhere that the parties can all meet, and the seller's office, although not neutral, is a good a place as any. Personally I like an attorney's office (my own) so I can ask any questions I need to.

You might want to be careful when asking questions on a forum like this one. Unless the individual is an attorney (which I'm not) you could conceivably get some very wrong answers or answers which don't actually pertain to the state you're living in. If you're paying cash, I would definitely say to hire an attorney for a few hundred dollars and be sure of these things instead of relying on others for advice.

Congratulations about paying cash for the house! That must be so exciting!!!

Answer 3

1. The title company Willl have all the papers for you to sign, at the end of signing you will get a copy of all the papers you signed. There wil be more coming as the transfer of deed has to be done at the counties courthouse or wherever they do it in your part of the country. The deed will be recorded, you will notice a charge for this at the closing.
2. Most places will only accept a certified check or a cashiers check. In some places when paying by check the money is held by the title company in an escrow account and can only be used for that purpose.
3. Remember one thing and do not ever forget it, the real estate company represents the seller and is looking after his interest. If in doubt about any thing and this is you first house you might look into having a real estate lawyer with you.

Answer 4

I have 20 years of real estate experience and I do not liked what you wrote here.
1. You need a real estate loer.
2. Certified check it's guaranty check and you should get the key and the title at the closing.
3. Make your loer to arrange place for closing and choose the title co,
4. the loer will protect you from real estate fraud,
specially if sealer is a real estate agent.
5. For a cash dill like yours, you should get the best price and the best treatment, they should even pay for your loer.
If they will not agree to do your way, my opinion look for another dill, specially in today market. Good luck!

Answer 5

Hire a real estate agent, they will protect you from being screwed. Yes, it will cost money but it would be a lower cost than losing what you are paying for the house.

When buying from an agent owned home you should be careful, a dirty real estate agent is more than happy to manipulate certain information to make more money.

Answer 6

If you have a doubt......DON'T!! Contact a real estate attorney....and quickly.