Is this something for the Sheriff

[Chewy65]

or is it just a civil matter?

The essential facts are that my neighbors entered an escrow to sell their house to a person who claimed to be a fireman who worked with FEMA and would be paying cash, which he claimed to have in his checking account. When it came time to deposit earnest money he failed to make the deposit. The day before escrow was to close he said he had not sold his other home and that this sale would have to be cancelled.

We do not know exactly what his angle was, but believe this was some kind of a scam and that this isn't the first time he has pulled it. Perhaps he was hoping to take possession (move into the property) before escrow closed and would have then squatted for several months pending expensive eviction proceedings.

We are wondering if the Orange County Sheriff might be interested, especially so if this person has a history of similar complaints, or should my neighbor just be glad they weren't hurt worse.

[eta34]

I’m not a real estate guy, so forgive the seemingly silly questions. Escrow opened without him depositing a dime of money? Was his income verified or was there verification of his cash assets? I am speaking out of ignorance here, but I would be very concerned about selling a house to someone like this. Maybe it is the norm, but it seems the realtor and/or title company would want proof of this stuff before proceeding with escrow. If I’m off here, let me know.

As far as a crime? I’m not sure how it fits any crime.

[edgerly779]

No deposit no escrow. Somebody screwed up in that deal.

[esy]

It really depends on the circumstances. Crime(s) could have been committed depending on what, if any, paperwork had been filed or what have you. I recently dealt with a real estate fraud, however, that had more to deal with the kid filing quick claim deeds, mechanic’s liens, etc., against several pieces of property.

Civil would definitely come into play if your neighbors and their lawyer can display a loss of time, potential monies lost if the house had been sold during x time instead of y time, etc. Civil suits bear a lower threshold of proof so as long as they can clearly show preponderance of evidence (51% that it was likely), then they’re good to go.

Have your neighbors get in touch with the county DA’s office and lay out everything that happened and they can make a determination.

[Frank1911]

Sounds like a weak case at best to me. I would chalk it up to an inexpensive lesson and have your friend move on.

Although I do understand that when it happens to you it's a BIG DEAL, but at the end of the day, it sounds like there was no monetary loss and no real victim per se.

With all of the major crimes that the District Attorney's Office and Sheriff's Office has to deal with, coupled with their personnel shortages, I don't see them spending any time on a case like this.

Keep us posted on the outcome and good luck.

Sent from my SM-G930V using Tapatalk

[P5Ret]

While probably not something they will look at alone, if there are other's that he attempted or did scam it may be an additional link in the chain. Personally I think at the very least it should be documented. Patrol deputies may not think much of it, but somewhere a detective may.

[Chewy65]

Thanks all for your collective wisdom. While there may or may not technically be a crime, what I was after was your common sense approach and I believe you all have offered good considerations.

The issue of what if any money was used to open escrow is a one I hadn't considered. It would seem foolish to take your home off the market without some kind of a deposit. I suppose I had assumed that there would have been at least a small initial deposit but if there was none I have to wonder about the neighbor's real estate agent. This is important since I have been planning to list my own home with him in the near future.

One aspect I had considered is touched upon by P5RET. Should a quick look at things indicate that the buyer has a history of similar endeavors, perhaps even a past conviction, enforcement may show a greater interest.

I will have to get more details before suggesting that any action be taken. Again. Thanks to you all.

[whatevs09]

wondering why this is posted on Calguns????

[P5Ret]

Originally Posted by whatevs09

wondering why this is posted on Calguns????

Why not? Have you not read the banner at the top of the page?

"Non-LEOs; have a questions for a cop? Ask it here, in a CIVIL manner."

[CBR_rider]

My biggest concern would be working with this particular agent/title company myself. I also thought there was ALWAYS a deposit by those entering escrow as well as a pre-verification of of funds/certain financial considerations. If they got the escrow paperwork; I'd have your friend call the buyer's supposed "work" and see if he really even is a hose dragger there.

Without a good showing of proof (that we don't know the title company/agents had), the whole "cash offer with no cash up front" just screams "scam" to me. Even mid level dope dealers working a large deal know to flash the cash to prove they are serious...

[Cokebottle]

^^^^^ This.
On the surface, best case it is simple breach of contract and a civil matter, but since no funds were lost (just the time it was in escrow which could have cost a sale, but they'll likely now sell for 5% more).
But it would be worth taking a look at the history of those involved, particularly the state licensed agents. It *could* rise to something criminal if there is collusion to defraud.

[Tango_Down]

Originally Posted by whatevs09

wondering why this is posted on Calguns????

Because it's always best to get legal advice on real estate transactions from a gun site. Same goes for medical, economical and political advise as well.

[CBR_rider]

Originally Posted by Tango_Down

Because it's always best to get legal advice on real estate transactions from a gun site. Same goes for medical, economical and political advise as well.

I learned how to do surgery on my dog from OT...

[CrosbyStills]

In Orange Co., esp w the Sheriff's Office, you're going to run into a certain mindset that is very prevalent. Here it is in 4 words:

No victim, no crime.

[benjamin101677]

Seems like this would be a civil deal for sure don’t see a crime here at all. People have a right to change there mind etc which is why usually with a escrow there is a non refundable deposit.

I would be asking a lot of hard questions to my real estate agent or a mortgage company is where the issue would see to be.

I would contact my real estate / mortgage company that was involved in the escrow and find out where no deposit was made.

[bootstrap]

Looks like a poor job on the part of the Listing Broker and Escrow company.

Listing agent should have verified Buyer's funds and structured the contract so the Seller would obtain the deposit in the event the Buyer fell through.

In the standard CA real estate contract, there are several types of contingency removals and not all of them put the Buyer's deposit at risk. A good listing agent will know which contingency removal to use to protect their Seller.

I'm surprised how escrow could even open without deposited funds. What exactly did the escrow company hold in escrow from the Buyer?

[whatevs09]

Originally Posted by CBR_rider

I learned how to do surgery on my dog from OT...

thanks, next time I need a new recipe for a chicken dish, I will post here.

[CBR_rider]

Originally Posted by whatevs09

thanks, next time I need a new recipe for a chicken dish, I will post here.

The dog surgery thread was amazing; sorry you missed it! There was one in this forum a few days ago that seemed to have potential but it was quickly wiped from history.... oh well; I was kinda looking forward to learning how I was actually supposed to correct a mistake on a citation.