Title and mortgage fraud continues to increase for both residential and commercial properties, with no sign of abating. It is important to understand that in the midst of the current economic downturn, fraudsters are likely to strengthen their attempts to defraud lenders and property owners.

Fraudsters are particularly targeting mortgage free properties. As such, when you are acting for a purchaser of a mortgage-free property, we ask that you take the necessary steps to confirm that the vendor truly has authority to deal with the property. Similarly, when acting for a lender for a property that is mortgage free, please confirm that the mortgagor truly has authority to deal with the property. 

In addition to obtaining proper photo identification, additional steps can be taken to confirm the identity of the vendor or borrower and the legitimacy of the transaction. These steps include confirming that the sale proceeds are paid to the vendor or the mortgage proceeds are paid to the mortgagor.

Listed below are common scenarios that may signal fraud:

- Property is mortgage free
- Quick closing
- Private sale
- Involvement of a private lender
- Large deposits paid directly to the vendor
- Stated age of borrower is inconsistent with his or her appearance
- Multiple spellings of borrower's name
- Sale or mortgage proceeds being directed to parties not connected with transaction
- Stated income seems inconsistent with borrower's age
- Borrower's assets seem inconsistent with his or her income
- Deposits paid through gifts
- Only client contact number is a cell phone number
- Loan arranged through a mortgage broker
- Agreement of purchase and sale has no handwritten alterations
- Client overly anxious for funds
- Lawyer on other side of the transaction changes several times prior to closing
- Lawyer has never acted for client previously or a power of attorney is used

Keeping this list in mind during each transaction will help to identify potential fraudulent activities. Taking the extra time to ensure you are not involving yourself with fraudulent transactions can be of benefit, as many negative repercussions surround these troubled transactions including:

- loss of reputation with lenders;
- lost time from responding to inquiries;
- loss of ability to electronically register documents; and
- potential disciplinary action by the law society.

We appreciate your cooperation as we work together to minimize fraudulent transactions. Should you require more information or have any questions, please contact us at 1-888-667-5151.

© STEWART TITLE GUARANTY COMPANY.

What is the most important thing to remember when installing a smoke alarm? Location, location, location!

Install at least one smoke alarm in every bedroom, outside of each sleeping room area and on each level of a multi-level house.
Test each smoke alarm regularly.

Keep batteries fresh by replacing them annually. To help remember, pick a set time each year, such as the start or end of daylight savings time.

Smoke alarms can’t help you unless they are functional and you can hear them. Even with hard-wired smoke alarm systems, batteries need to be replaced to ensure operation in the event of a power failure.

Most building codes now require smoke alarms for new homes; and most municipalities also require the installation of alarms with the sale of an existing home. Contact your local fire or building department for tips and other information.

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue.
 

"Home staging" is not a new term, but for many homeowners and real estate agents the concept of "professional home staging" is shedding new light on how to promote a home in the real estate marketplace. In past years, homeowners were left to their own discretion as far as preparing for home showings. Though they could occasionally rely on an agent for instructions, more often than not real estate agents were just as perplexed at working out the details as the homeowner.

While agents are experts in the field of selling and closing, many are not design savvy. Agents usually know exactly what factors can help sell a home. It's just not always easy to get a home into selling condition in a timely manner without some sort of experienced assistance.

Professional home stagers are practiced in the art of preparing a home for resale. They work with the "flow" of a home, eliminate clutter, edit and arrange furniture, and even assist in enhancing curb-appeal. With the aid of a professional home stager, your house can make a notable first impression on potential homebuyers.

First Impressions
As the real estate industry often stresses, the first impression is the key factor in selling your home. Typically a potential buyer has made up their mind in minutes after they step in the front door. They were already forming an opinion as they pulled into your driveway!" That really doesn't leave too much room for fault.
"To achieve the greatest possible outcome a home should always be presented at its best the first time around."

Finding a Professional
You find and select a professional home stager much like you would find any other professional service. Ask around and get referrals. Check with your real estate agent. A number of larger real estate companies offer access to a listing of professional home services in your area. These individuals and companies have often already been pre-screened by the real estate agencies or their agents.

How Much Does it Cost?
When you contact a home stager, ask for an estimate. Most home staging businesses will be happy to give you a free estimate and it is usually a quick process. Keep in mind that this is only an estimate and estimates can be a bit off. However, unless something unforeseen takes place between the estimate and the actual job itself, an estimate should be fairly accurate.

Get several free estimates and make some calculations. Just like any service, pricing in the home staging industry can vary over a wide range. Some charge an hourly rate and some will charge you a set fee for the entire job. Be sure to ask how they determine their fee so that you can make an educated decision. Also, factor in the condition of your home, the average amount of time homes have been on the market in your area, and the asking price of your home.

Asking price can play a huge factor in what a homeowner should be willing to pay for staging services. Some professional home stagers bring in rented furnishings, driving the price up considerably. Some simply charge too much to make it pay off. A lot of home stagers seem to forget that their clients are planning on moving out of the house very soon. Most home sellers are not willing to invest a huge amount of cash in a house they are planning on leaving behind.
Find out up front what the stager is planning to bring in and at what cost. Though expert services do come at a price, the cost should balance with the expected benefit of a higher selling price. As a rule, the higher the asking price of the home, the more one can spend to have it professionally staged.

Agent Participation
For the most part, a Real Estate agent should be able to determine if a home is in need of this type of service, and if it would be of benefit or not. If you know it would be in the homeowner's best interest and if you know that something will need to be done before the home is listed, it might be wise for the homeowner to budget for staging. If it's a reasonable fee, it is usually a worthwhile investment. It could certainly make all the difference in the sale of your home.

In today's complicated real estate market, you need someone to represent your best interests. When you are ready to buy, you need a Buyer's agent to represent you.

The agency between the Buyer and the agent is spelled out through the agency option agreement and then the Buyer's brokerage agreement.

This is no different than when a serious seller decides to sell their property through a real estate company and has a real estate professional represent them through an agency option agreement then the listing agreement. 

Just like the sellers listing agreement no money changes hands until there is a sale.
The Buyer's agent is paid through the listing company's contract with the Seller only on a completed sale.

The Buyer's brokerage agreement is fairly new in the Calgary area, but has huge benefits for the Buyer. Through the Buyer's brokerage agreement the agent is an advocate for the interests of the Buyer and has little regard for the seller or his agent, but must remain ethical.

The Buyer's agreement can go even further by the agent securing a deposit from the Buyer for a service fee and held in trust until closing of your new home. This allows the Buyer's agent to search out property that may not be on the Real Estate Board's MLS System and the seller may not be willing to pay all of or any of the agents service fee. This gives the Buyer a greater opportunity to find that dream home.

An agency agreement of this type cannot be established without a written Buyer agency agreement.

As with the listing agreement confidentially is of utmost concern and only information pertaining to a transaction may be released for the benefit of the Buyer’s purchase.

Your professional real estate agent works with you "the Buyer" giving you the edge to get your purchase completed as smooth as possible, in our case with years of professional training.

Another part of our service includes all the necessary legal forms to protect your interests.
Based on the facts, the Buyer's brokerage agreement is a win win for the Buyer by having the full attention of the agent. Just a word of caution, do not sign more than one Buyer brokerage at a time. That would be like listing your home with two agents on two separate listing contracts. Now that's complicating and can be costly.