This scam has been around foe a while now but it never ceases to amaze how the mind of crooks work and how much valuable intelligence they spend to con others.  What kind of person does that?  Why would you want to do rip off the system when you will also pay eventually?  But more important, whatever happened in the lives of these people to get get them to that point?

The latest scam for the last two months or so are offers over the asking price, usually the original price with a kickback to the buyer.  The buyer never moves in, leaving the lender and bank out with a house whose loan doesn’t match.  Guess who gets blamed?  The Realtor because they should have known.

If it’s too good to be true than there is a reason.
The ruse is simple but the implications are tricky.  You are a few weeks at the end of a listing that has sat on the market for long.  Your sellers have finally agreed to adjust their price to reflect the current market.  The home they once thought was $1,500,000 is now on sale for $1,100,000 as per your original idea. Someone approaches you with an offer for the original $1,5M, but with an addendum saying the extra $400,000 goes back to the buyer.  The agent is probably desperate to sell at this point before the end of the listing contract and might jump at the opportunity.  Beware of a deal that is too good to be true.  Who pays over the rice for a home no one bought?

When the deal goes through, the lender gives the money to the buyer WITHOUT checking the addendum.  Yes, thoroughly unbelievable lenders don’t ask to see the addendum, in this case that says the extra money goes into the buyer’s pocket.  The seller gets his asking price, the buyer never moves in, eventually leaves the state and guess what happens next?  The lenders go to the sellers, then the Realtors. 

Lawyers deal with rotten apples all the time and probably think most people are guilty.  The real estate agent, in the eyes of lawyers should have known.  How could they have let this happen?  Then the sellers.  They should also have known.  The buyers are usually well out of state, which complicates matters.

The best thing to do? 
There is no one case fits all.  Call a legal lawyer with experience in real estate and have the contract thoroughly looked into.  You can’t afford to go through this both financially and for your reputation.  It does not mean all shady offers are budding scams but as agents we are in the first line of fire.  We need to protect our clients and ourselves, especially when I look at how agents are easily sued lately.