The Cranbrook RCMP have put out a fraud alert regarding potential real estate scam. In the last three months they have received complaints from a local real estate company advising some agents have received inquiries from someone looking to purchase property in the area sight unseen.

The scam is a variation of one seen before, where a person offers to buy an item (car, trailer, horse etc.), sends a cheque for the amount, changes their mind, and asks for a refund. The unsuspecting seller sends money back and then finds out the cheque the "purchaser" sent bounced and they are out.

The RCMP press release said they presume the same would happen in this case, except much more money would be at stake.

Jason Wheeldon, local Realtor, said there is a process that must be followed that would make such a scam unlikely for a Realtor.

"We are required by law (through Fintrac) to ensure that we identify individuals entering into a contract and if they are an out of town party they are required to have a professional ID them and fill out a third party verification form," he said. "All of our firm's contracts include a term on addendum 1 paragraph 3 that states specifically 'A Buyer's deposit cannot be released until it has cleared banks and the provisions of the Real Estate Services Act have been complied with.' Deposits are never released until the deposit cheque has cleared, this is prevalent practice in our industry."

Wheeldon said it is highly unlikely a Realtor or brokerage would engage in any other practice in regards to deposits.

"However, we have seen copies of this e-mail fraud and warn those that are offering their homes for sale privately to be aware of this scam and to engage a professional Realtor, notary or lawyer to handle any contractual dealings with selling a home," he said. "Any suspicious activities should also be reported to the RCMP."