By Lisa A. Tyler
National Escrow Administrator
The Company has identified a specific type of high risk transaction which exposes the title industry to significant financial loss. The transactions recently surfaced as fraudulent sale transactions involving vacant lots that are zoned residential.
Read "CASH purchases" for detailed information about the types of fraudulent transactions causing the title industry claims and losses.
As discussed last month, diverted wire transfers have declined, but our settlement agents should not let their guard down or start disregarding standard operating procedures when it comes to verbally verifying bank wire information.
Chicago Title Company recently received an altered payoff statement via e-fax and an assistant escrow officer shared the tell-tale signs of how he discovered the change in bank wire information in the story titled "FAX center."
In this issue, our state withholding series features the great state of Colorado. In the state of Colorado, sales of real property for $100,000 or more are subject to withholding. The withholding is deducted from the seller at closing by the title insurance company providing closing and settlement services. The amount to be withheld shall be the lesser of:
(a) Two percent of the selling price of the property interest or,
(b) The net proceeds that would otherwise be due to the transferor as shown on the settlement statement.
Read "COLORADO real estate withholding" for detailed information.