There is a nationwide property scam where homeowners are duped into assigning a lien on their property in exchange for an upfront cash payment.
That was the warning from San Bernardino County Auditor-Controller/Treasurer/Tax Collector Ensen Mason and Assessor-Recorder-County Clerk Chris Wilhite.
The duo issued the warning Monday about the scam dubbed “Homeowner Benefit Program, which comes from a Florida-based real estate company operating a nationwide network.
The real estate company offers homeowners up to $5,000 cash in return for the homeowner signing a Homeowner Benefit Agreement.
The agreement gives the company the exclusive right to serve as the listing agent, receiving a 3% commission when the homeowner decides to sell their home.
When the agreement is signed, the company files a memorandum lien with the county recorder’s office.
The catch is that it is a 40-year agreement attached to the property. If a homeowner dies or gifts the property to another, the heir or new owner is obligated to the terms of the contract.
If the homeowner wishes to cancel the agreement or avoid listing their property with the real estate company, they must pay an early termination fee equal to 3% of their home’s value, which is the amount the company would have received upon the sale of the property.
“Unfortunately, this arrangement is perfectly legal,” county officials said.
“A couple of thousand dollars may seem like a lot of money to someone in financial need, but they don’t…
