Question:
A big bank just held up a deposit on a purchase because they suspected fraud! My client, a Buyer, a senior went to the bank in person to wire a deposit to a well known brokerage. They did it and within an hour the fraud department called and she was questioned again!
The funds were held by the Bank and not released to the brokerage!
Apparently before they did the wire they brought her into an office and asked her a number of questions to determine that she wasn’t being scammed. The funds were subsequently released late in the third day following acceptance.
Answer:
Technically, this a breach of contract, and the Seller was entitled to terminate the transaction.
This is the type of situation which could easily occur with a senior.
How to avoid this RISK:
- Attend at the Bank and have a cheque certified with the funds
- Have the funds transferred and payable well in advance to the Buyer’s Brokerage or Buyer’s Lawyer
- Have the deposit split into two amounts, the first amount much smaller than than the second
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com