My email this morning contained a truly disheartening message...the Executive Director of my local Board of Realtors has found it necessary to convey the following:
It has come to the Association's attention that sellers are being asked to sign post-dated contracts to April 30 so buyers can take advantage of the Homebuyer Tax Credit.
This is an illegal practice and constitutes fraud.
The North Carolina Real Estate Commission will be posting information about this issue through Facebook and Twitter later today.
I am appalled. This would never have occurred to me...never. I am not naive and have been practicing North Carolina real estate for over 30 years. Which part of “our reputation and integrity is everything” are some folks missing here?
Now, I am quite sure this is not just something a North Carolina agent cooked up and sadly, I am sure, now that I think about it, that there were plenty of folks across the country who probably counted on doing this all along. Shame on them.
I have spent the first 4 months of this year working as hard as I have ever worked to ensure that those buyers who wanted to take advantage of the Homebuyer Tax Credit got every opportunity to do so, up to and including referring them to another agent in order to get the job done for them. I'm tired. To find out that I have colleagues (and I use that term loosely) who would suggest or consider engaging in fraud in order to accomplish what I have accomplished, just makes me mad.
How humiliating that Facebook and Twitter will now be used by the NC Real Estate Commission to get the word out to “the world” that some real estate practitioners have no integrity and would even consider compromising their clients and jeopardize their transactions.
Once they have slammed the door of your jail cell don't call me for sympathy. I'm fresh out.
It's Simple...When You Have A Great Agent!
SarahGray Lamm is a licensed, full time, residential real estate professional in the Raleigh Durham area of North Carolina with over 60,000 hours of experience. She specializes in serving the real estate needs of home sellers, home buyers and investors in Chapel Hill, Carrboro, Durham and Northern Chatham County and is proudly associated with Allen Tate Realtors, the Carolinas #1 independent realty company.
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I heard a few agents "bragging" about such acts earlier today... Guess it shouldn't surprise me but it did. These agents felt "justified" because the Seller really wants to sell and the Buyer really wants to buy...
Unbelievable! I wouldn't want to lose my license or even worse go to jail for someone to maybe get a tax credit.
I expected this to be something that would happen... and I also hope that the various real estate commissions hand out stiff punishments... AND that the IRS would get involved. A little brokerage auditing of contracts dated 4/30/10 will likely yield later dates on a few faxes or emails...
SarahGray,
This was just bound to happen. I can't say I'm surprised by the Association's email. Get caught on that one and lose your license, and maybe more.
Rich
We were just wondering about this ourselves yesterday. How anyone can even think of doing this is beyond me. I think your Real Estate Commission would be better served by notifying their members via email rather than put it our in front of God and everybody on Facebook and Twitter. What's next, a YouTube video? Flyers posted in Second Life? Some things are better done privately.
That is truly sad. I can see buyers delaying a closing for a day, but to out and out forge a document and put the Seller at risk....
As a customer and former employee in the real estate industry, I am apalled that this behavior is still common.
This, folks, is why the general public uses the internet rather than engage a Realtor. In an increasingly mobile world, how am I to know I'm picking a trustworthy advocate in my new town? It is likely I don't know anyone in the town to which I'm relocating so referrals are unlikely. Why would I not just fend for myself?
It would behoove the Realtor community to clean up the ranks before the title of "Realtor" means passed-an-exam-and-pays-lip-service-to-an-ethics-code.
My 2 cents.
This is disturbing and a poor thing that some might actually do this -- may they go to jail. Our 2 cents.
Oh what a tangeled web we weave . . . this is truly BAD!
We haven't heard of this being done but nothing surprises me any more. So many unbelievable things seem to happening every day!
I am sad to hear that the NC Real Estate Commission will be posting this online. This will just paint us all with the same brush to the consumers. I agree it should be handled by a message from the MLS boards in NC.
Sue of Robin and Sue
We were told not to by OAR today. I guess people here have tried...
I am sure it is going on everywhere and a lot more than you will ever know
SarahGray, I am disheartened, but not surprised. People are people... I hope they get caught.
We were talking about this last week. I had a realtor tell me today that I would do it, wouldn't I? The answer is no.
Sara, I saw a post about the fact that this would probably happen last week and now here it is. How in the heck could you live with yourself?
We had title people up til midnight receipting contracts here in Texas. No, I wouldn't commit fraud. My license is worth more than that to me.
I'm surprised you are surprised. People cut corners for financial gain. You are wise to not participate.
Idiots. There is no one transaction worth my license or my reputation. I don't care how big.
Thank you
I'm so fired up with disappointment right now anyway, after sending a referral to an AR member in another state & learning what an unprofessioanl, horrible job he did. It feels fraudulant, unethical, and now, after reading your post here, I, too, am just in complete disbelief of fellow colleagues. I have zero tolerance for this.
My mouth is still open....
Some people are just dumb...
I worked to hard to get where I am. No going to do anything to jeopardize that.
Take care Sarah Gray,
Ginger Harper
Right on, sister!!! I was at the office at 11:00 pm on April 30 to make sure that the FAX was time stamped on April 30 so my buyers would get the tax credit. I missed an important family event to do this, but I didn't want to leave $8,000 on the table for my client. It never occurred to me that some people would misrepresent the date/time to cover for what they failed to do in the first place. Awful!
Oh, my. Ridiculous that people would conceive of such nonsense. Rest assured there are more of us who would not engage in fraud than those that would.
WOW! It's simply greed and dishonesty. It gives us Realtors a bad name. My fellow Active Rainers, it profits not a man, if he gains the world, but lose his soul
SarahGray,
Looking forward to the next couple issues of the Bulletin. Maybe someone in the back will be an example for others.
The trust account stuff is getting boring anyway....
Its just unbelievable! What can justify an act of fraud like this in someones mind?
Doesn't surprise me and I hope it's not going on around me in my area. Now that will really tick me off. I hope they all get caught and get nailed to the wall no matter where they are located. It's things like this that make the rest of us look bad which of course makes trust to strangers that much more difficult.
Hi SarahGray -- If anyone does this, I hope they are caught and prosecuted. It's beyond imaginable why anyone would want to put themselves at criminal risk of fraud, period, let alone for an insignificant sum of money.
@Melissa, #19 - we did a similar thing on April 30th after emailing an accepted offer to a listing agent at 6:30 pm requesting that she respond with an emailed acknowledgement that she received the accepted offer.
Some people just have no respect for themselves nor the Real Estate business period.
SarahGray - I get I'm just calloused, but this doesn't surprise me one bit. In fact, I thought we would be hearing more about this than I have. It just seemed too easy. I am thankful that all of my clients who cared about the credit wrapped up their contracts in time. :)
It truly doesn't surprise me. There is always someone willing to cut corners.
And those fudging contracts (consumers and their brokers) may be more closely scrutinized than they expect. The IRS has been/will be doing a lot of auditing on filers claiming the credit.
I saw a magazine ad for May by a company advertising the HBTC! What? I hope they have 'for active military' in some fine print . . . :)
SaraGray - you never have to look over your shoulder when you do the ethical thing. This is what derived the agency disclosure to explain the agency here. Look to see an aditional piece of paper to cover this errant behavior.
SaraGray,
There is always an element who will circumvent the rules. Sometimes they are caught.
That's crazy. Can't say I'm too surprised though.
I had an agent that showed one of my listings on Friday that was searching for a last minute deal for a first time home buyer. I told him to be sure to send an offer right away if the buyer was interested so we could get it worked out prior to the expiration. He said that he was sure if his buyer made an offer that the seller would be willing to back date the contract "if they really want to sell their house". Yikes!!
SarahGray - sadly I have heard of a number of instances, and I suspect there will be a ton of issues associated with this deadline and supposed contracts. There are lots of ways to try to game the system, and I suspect a ton of folks trying - consumers as well as their agents.
I got one in myself thanks to the hlep of a great agent working hard with his out of town buyer.
Jeff
Unfortunately not surprising. With all that has gone on in the market the past few years you would think that one would think twice before advancing on unethical and potentially illegal practices. ~ Doug
This makes us all look bad Sarah, its like when a board member in Delaware told our local newspaper that racism was "alive and well with Realtors in Delaware" without any proof of wrong doing.
Very sad
As I told Andrea who sent me here--I work too hard to lose my license over $8,000 that is going into someone else's pocket anyway!
EXCELLENT post!
I wrote a post a couple of weeks ago reminding people about the April 30 deadline. I couldn't believe my eyes when an agent commented that he thought the deadline was a "guideline" and post dated contracts would be an acceptable way of getting around it. Up until that moment I hadn't even given it a thought. It seems he wasn't alone with these thoughts. It's a sorry state of affairs to say the least!
Fortunately most of us are honest and take the code of ethics seriously and wouldn't dream of breaking the rules like this. Unfortunately it's the minority that gets noticed and gives the rest of us a bad name.
Denise
I had wondered about that and guessed that any contracts coming together this week might get fudged (and back-dated) to get that extra $8,000.
I had an final counter-offer in to a bank last Thursday, and they were so overwhelmed that they couldn't respondto us until this morning, but when I received the acceptance, I noticed that they had dated it on 4/29!
I guess they assumed my buyer needed the tax credit, but he is an investor who is not going to occupy, so it didn't matter at all.
SarahGray- No way would I participate in such behavior and I've not heard a thing about locally, just here on AR. Makes me wonder if it will happen here.
And Amber- I'm so sorry you have the attitude you do. I'm quite the opposite. I trust everyone (until and unless they give ME a reason not to do so) and frankly, I'm sure I'm happier than you who seems too afraid to believe there is more good people in the world (and this profession) than bad. For whatever happened to make you this way, I'm sorry.
If you've lived long enough you know that there will always be people violate the rules. I wouldn't be so surprised.
Where there are rules, there are people who seek to break them...unfortunate...unethical...un un un....let's hope any realtor who participated is given more than a wrist slap.
SarahGray,
Shenanigans no longer surprise me at all. Last week I went ballistic when an agent explained she had not deposited her buyers' check - 10 days old - and would just get them to write a new one so she'd have a "fresh date" and her manager wouldn't complain. I went right to MY manager with the story...
We'll encounter such but do not have to support it!
it's interesting that almost everyone agrees with doing the right thing..but they seem to fail
to mention that the Lord guides us and we are to put our faith in him.
Witness:
yesterday my key employee on a major project called out again; I trusted in the Lord, and sure enough within one hour
I had 2 qualified professionals with me. One was even in his truck ready to work when he called. The Lord knows our needs
before we do and it is in HIM/HER that we need to put our trust!
Do one less blog today and pray.
Paint a better picture with your lif3!
Gee, I have not heard of this here, but then again we were to busy working like Chickens with our heads cut off to get those last minute shoppers under contract before the deadline.
If someone asked me to do that, another agent, buyer or seller...I would say NO, NO, NO!
This doesn't surprise me at all !!!!!!! Their are simply agents out there that think they are above the law !!!
Wow, posted yesterday and didn't figure I'd get too many eyes on it, what with all the AR drama (glad we're back up and running!)
I am truly grateful for the member of the public, Amber #7, who stopped by and put the "outside" face on this situation. If more agents considered the damage they do to the public's perception before they acted in the name of our profession...like that will happen...but I would humbly submit that reading the comments made by the creme de la creme of our industry right here gives the public a GREAT place to start in searching for a Realtor with integrity. Yep, I know we don't cover every single market but you can ASK a good Realtor from this comment list to hook you up with another good Realtor where you are going. Make it clear you would like the first Realtor to interview the new one. No one says you can't simply ask an agent how they would handle a "test" situation. Don't like the answer....move on! Thank you for bringing your point of view to us!
I just want to say that while I am angry and appalled would never have thought of this myself, I am not so much surprised as disappointed, once again, by the choices some folks make....but the rest of you live up to my expectations of those I call colleagues! Thank you!
Some people will try anything to make a buck, not for me. I have to answer to the guy in the mirror.
No wonder it is soo difficult to win the trust of a client. I dislike having to stand on a soap box to proclaim that I am not a used car salesman!
SarahGray, it's a shame the thought of doing this would even come up. Fraud carries some stiff penalties.
Wow,
The manifestation of righteousness in the comments to this blog post is beyond belief. No hesitation, no gray area, no questions...
So, until 4/30/2010 it is a good deal for your client, but one minute later it is a shame, a crime, a stain on the face of the industry?
Just unbelievable
Ummm, yes Jon. One minute later it is a shame, a crime and a stain on the industry. There is no gray area about a midnight April 30, 2010 deadline. That is when it became fraud. Not only that but this is not minutes but DAYS later...where do YOU draw the line?
SarahGray,
Is Jon serious? He's calling obeying the law "manifesting righteousness?" You know, I thought NC posting on Twitter was unnecessary and made us look bad - now I'm thinking maybe FLORIDA needs to put the word out to their agents...
Sarah,
I'm like you, I can't believe someone would even think of it let alone participate in fraud. I shake my head thinking about the cost to our industry.
And Jon #56 , one minute later it is fraud, where's the grey area?
looks like some poeple value thier commissiona little more than their freedom and the ability to earn living in real estate. I know that I don't need a commission that bad that I would commit or help commit fraud. I her federal pen's are not as fun as living free... Tax evasion...
Bravo. Integrity is everything in this business.
This market has generated more deceit, fraud (mortgage & tax), unauthorized practice of law, etc. than I would have ever imagined. There is no level too low for some people.
SarahGray: Am I surprised that this is happening? I wish I could say I was. The fact that the commission is posting this message on Facebook and Twitter and God-knows where else it will be seen is so disheartening, frustrating, sickening, and maddening. There are obviously so very many good, decent, hard-working, and honest agents, lenders, and other real estate industry professionals. That fact seems to get lost when issues of this nature reveal themselves ... and we all end-up losing to some degree, whether guilty or not. It makes it harder to gain the trust of our clients, other professionals, the public as a whole. It's the rotten apple that gets all the press ... not the million good ones. Our reputations and our self-respect is all we have at the end of the day. Actions like the one you mention make it so much harder to earn half of that ... our reputations ... out in the world. I've worked too hard (as I'm sure you and others have) to have someone destroy the integrity of our professions. I join you in your fury ...
Gene
SarahGrey - I am not shocked to hear that this might be going on but I still can't believe that there of people out there who would consider risking it. I like to sleep at night and I definitely don't like the idea of being pulled into any sort of hearing!! Nice post! Hopefully the bad apples will be caught!!
OMG....what a story! I've never heard of anything like this before. guess there' a first time for everything.
Patricia
Amazing. Agents should know better.
I wondered if that type of thing would be going on after the official deadline. I see that some do not have the morals to uphold any type of code of ethics.
I can believe it. I've dealt with some pretty unethical agents over the years. wouldn't this be flat out tax fraud?
I am surprised that you are surprised. There is an entire segment of the real estate community that spends entirely too much time trying to beat the system and rationalize their behavior. It is a crime and should be treated as one. To suggest that it is acceptable is ridiculous. To say it is for the customer is BS, it is so you can get the deal done and look like a hero.
We all know the difference between right and wrong. I've actually heard agents say that they'll post date PA's because "my clients hired me to get them the best deal I can." What a bunch of crap. Maybe their clients should've found a house before the deadline. I mean, did they just spring the end of the tax credit on us? Be professional people. It's what's right.
Think the IRS is awatchin
http://www.google.com/hostednews/ap/article/ALeqM5hbtO_6F1CmAjKDS0UqSBgZ0NI8mwD9F3OLJ00
Hang em High!
Thanks for the link, Dunes! Those of us who helped buyers make purchases which qualify will be prepared to help establish proof of having legally met the deadline should any questions arise.
SarahGray, there is a simple solution....lock them up. No excuses acceptable.
this is ridiculous. why is are some agents willing to jeopardize their license that's enabling them to make money!?!?! Not only that, what about their ethics, professionalism, and reputation! Oh, yes... it's called ignorance/incompetence.
I am glad Dunes mentioned the IRS. I saw a lot of mention of various watchdogs, but the IRS will make all the state agencies seem like a walk in the park. As an Atlanta boy I have no desire to spend any time in Atlanta down at the end of Boulevard for TAX FRAUD.
I hadn't thought of this happening, but now that it has happened, I'm not very surprised.
I'm sure that there will unfortunately be quite a few people who get caught trying to cash in on this this bad idea.