Is your buyer on the Government’s ‘Blocked’ list?

There are many documents that form a contract in a property transaction and by the time the property is ready for recording, the pile measures about 4″ or 5″ in height!

One of those documents, recently added by the Federal government, is the AFFIDAVIT OF NONFOREIGN STATUS – a one page declaration of who the buyer/seller is and this document is sent to the lender for screening ~ to be measured up against the 480+ pages (3 columns per page) of persons who are not permitted to purchase property in the US!

According to the Federal Secrecy Act, certain individuals are barred from buying property in the US, because they are at risk of money-laundering, either for purposes of terrorism, drug trafficking or on-line fraud, and this forms part of the 911 Homeland Security process.
http://www.ffiec.gov/bsa_aml_infobase/default.htm

“Pursuant to the Bank Secrecy Act and requirements specified by the Department of the Treasury’s Office of Foreign Assets Control (OFAC), seller will not engage in any transaction with an individual and/or entity that either a) appears on the list of Specially Designated Nationals and Blocked Persons, Specially Designated Terrorists, Specially Designated Narcotics Traffickers, or b) that Seller suspects to be involved in suspicious transaction or a transaction in violation of federal law………..”

Although this document applies to all who enter into a property transaction, there are certain ‘red flags’ that would escalate such an investigation, one of which is the reluctance on the part of the buyer or seller to provide identity information or who provides incomplete or incorrect information.
http://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_106.htm

If you think about it, sellers who accept cash deals without an agent, are placing us all at risk, because this vital step would be by-passed, thereby possibly risking the lives of innocent Citizens. Do YOU know who bought the ‘For-Sale-By-Owner’ property on your street?

In addition, the Internet is fraught with offers from outside the US to buy property, usually offering to do so through their ‘attorney’, and these almost always turn out to be fraudulent deals!

One of the ways that these chancers get FSBO information is through advertising and as most FSBO listings are advertised on Craigslist, this is the most common point of contact.

It is only by being vigilant and using an agent who is aware of the many and frequent changes imposed by government, that YOU, the buyer or seller can safely close Escrow without putting others at risk! In the event of a ‘For-Sale-By-Owner’ property passing to a blocked person, the Federal government would hold both buyer and seller responsible, so while the owner might save money on the brokerage commission by not using a licensed agent, is jail time really worth it?

Don’t take a chance ~ ONLY do business with a qualified and licensed agent, one who is a member of the real estate Board (a REALTOR ®) and one who makes it their business to stay up to date with the law!


Althea Garner
REALTOR (R) MBA, MCI, e-Pro
Exit Beach Cities Realty (California)
Preferred Realty Executives (Florida)
Your House Of Homes Online
DRE 01516817
772-626-1768

Search over 50,000 listings at my web site:
http://www.HouseOfHomesOnline.com

Women’s Council of REALTORS(R):
VP Membership – 2010 (South Orange County)
Treasurer – 2008 (Coastal-West)
Webmaster – 2009 (Long Beach)
Editor – 2009 (Long Beach)
Education Committee – 2009 (California State)

Orange County Association of REALTORS(R):
Education Vice Chair – 2009

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