Escrow Deposit Verification

 
 
 What happens in Miami real estate can effect the real estate industry statewide.   Remember the Escrow Deposit Verification? You'll recall it was created to confirm there really was a deposit made on a property. Obviously that wasn't happening, and evidently, happened frequently in the Miami area. 
 
Recently, the Financial Crimes Enforcement Network (a part of the U.S. Treasury known as FinCEN) issued a trial order for closing agents in Miami-Dade County to scrutinize buyers monetary resources for purchases over $1 million.  
 
Created to prevent money laundering, FinCEN requires attorneys and title companies to determine the owners behind holding companies that pay even a part of those real estate purchases with cash, money order, cashier's check or travelers check.  After recording the actual buyers' identification, the information is entered into a law enforcement database.  
 
Today, most transactions are closed by wired funds and banks know who is generating the wire.   While experts doubt it will affect real estate purchases, when the federal government is involved, all parties to the transaction must be very cautious and diligent.  And, it just might mean more paperwork for the rest of us in the future.    
 
By: Kathy Zorn
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