Navigating the Digital Terrain: A Guide to Avoiding Cybercrime and Wire Fraud in Real Estate Transactions

In the ever-evolving landscape of the real estate industry, an alarming trend has taken root that demands our immediate attention. Across the nation, lenders and borrowers alike are facing a significant uptick in instances of cybercrime and wire fraud. These sophisticated scams not only pose a threat to the financial security of individuals but also undermine the integrity of the real estate transaction process. As the owner of North Conway Realty, I feel it's crucial to address this issue head-on and equip our clients with the knowledge and tools they need to protect themselves.

Understanding the Threat

The digital age has brought about many conveniences, especially in how transactions are conducted. However, it's also opened the door for cybercriminals to exploit vulnerabilities in the communication between lenders, real estate professionals, and their clients. By intercepting emails or masquerading as legitimate parties, these fraudsters deceive borrowers into wiring funds to fraudulent accounts. This not only results in the loss of hard-earned money but can also derail the dream of homeownership.

The Front Lines of Defense

Awareness is the first step in combating cybercrime and wire fraud. Here are essential strategies to help keep you and your finances safe:

- Double-Check Email Addresses: Pay close attention to the email addresses of senders. Fraudsters often use addresses that are very similar to those of your real estate agent or lender, with minor alterations that can be easy to overlook.

- Verify Information: Before transferring any funds, take the time to verify the instructions with your lender or real estate agent directly. Use a phone number you know to be correct—not one provided in a potentially fraudulent email.

- Secure Your Information: Be cautious about sharing sensitive information over email. Ensure that any financial information is transmitted through secure, encrypted channels.

- Be Skeptical of Urgency: Fraudsters often create a false sense of urgency to pressure their targets into acting quickly. If you receive an email urging immediate action, view it with skepticism and verify its legitimacy.

- Educate Yourself: Stay informed about the latest trends in cybercrime and wire fraud. The more you know, the better prepared you'll be to spot a scam.

Creating a Culture of Vigilance

At North Conway Realty, we're committed to not just facilitating real estate transactions but also ensuring the security and peace of mind of our clients. We encourage an environment where questions and double-checks are welcomed, understanding that vigilance is key to preventing fraud.

Reporting and Recovery

In the unfortunate event that you suspect you've been targeted by a scam, it's crucial to act swiftly. Contact your bank immediately to attempt to halt the transaction. Following this, report the incident to local law enforcement and any relevant financial authorities. While recovery of funds is not always possible, prompt action improves the chances significantly.

The email addresses below are KNOWN scammers:

 

Here are this week's North Conway properties with rental potential:

 

In Bartlett, a proposed warrant article aimed at regulating short-term rentals (STRs) was unanimously rejected by the Planning Board after receiving criticisms from selectmen and the public. The article, if passed, would have required STR owners to apply for a conditional use permit, adhere to National Fire Protection Association safety standards, and handle taxes and insurance appropriately. However, concerns about enforceability and legality, particularly regarding insurance requirements and tax collection, led to its dismissal. Selectmen and residents raised issues about the practicality of enforcing such regulations, the potential for expensive litigation, and the fairness of treating STRs differently from long-term rentals. Suggestions for a more educational approach towards safety codes and alternative certification for STRs as "renter-friendly" were also discussed. Ultimately, the planning board decided against moving the article forward due to these concerns and the tight timeline for warrant articles.

Read the full story: https://www.conwaydailysun.com/news/local/bartlett-planners-shelve-str-article-following-pushback/article_7c4096aa-c4ed-11ee-b63f-cf5d9ef492ae.html

 

Here is an exceptional opportunity with this .69-acre parcel in Hale Estates, located a mere 20 minutes from the heart of North Conway. This prime land promises a quiet atmosphere, backed by 15 acres of common land to ensure lasting privacy. Ideal for creating your dream home, it combines the peacefulness of a quiet neighborhood with the convenience of North Conway's amenities. The growing prestige of Hale Estates is evident, with two homes currently under agreement, each listed over $800,000, highlighting the substantial value of this area. Whether you're ready to build now or planning for the future, securing a parcel in this sought-after community is a wise decision. The property comes with access to community water, and a community leach field simplifying the development process.

Ever wonder why mortgage rates go up and down? One key factor is the 10-year U.S. Treasury note. Think of the 10-year Treasury note as a reflection of how the government borrows money. Its yield, or the return investors get, is a big deal for setting mortgage rates. Here's a straightforward breakdown:

The Connection

• Benchmark Buddy: The 10-year Treasury note is like a benchmark or a standard for long-term interest rates, including mortgages. Since mortgages are often paid back over 30 years, they're seen as having a similar risk and duration to the 10-year Treasury.

• Economic Crystal Ball: The yield on the 10-year Treasury gives clues about what investors think will happen in the economy. If they expect inflation or higher interest rates, the yield goes up. Mortgage rates often follow suit because lenders want to make sure they're offering competitive rates that also reflect economic conditions.

• Investor Appeal: Mortgages get bundled into securities that are sold to investors. These need to be attractive compared to the safe and steady 10-year Treasury. So, if Treasury yields go up, mortgage rates often need to rise to attract investors.

What It Means for You

When the 10-year Treasury yield moves, mortgage rates tend to move in the same direction. It's not a perfect match, but it's a reliable trend. However, other factors like the Federal Reserve's actions and the overall demand for mortgages also play a role.

So next time you hear that the 10-year Treasury yield has gone up or down, you'll have a hint about where mortgage rates might be headed. It’s a bit like the financial world’s version of predicting the weather – not always perfect, but useful for planning ahead.

Bartlett is the latest town considering regulating short term rentals.  Below is a copy of the proposed amendment to Bartlett's zoning ordinance:

SHORT-TERM RENTAL: A dwelling where transient lodging is provided for compensation for stays of between one and thirty consecutive days and where the dwelling would normally be considered a residential living unit not associated with regulated commercial activities such as hotels, motels, etc.

A conditional-use permit to operate a short-term rental must be obtained from the selectmen’s office using the prescribed form and after paying the required application fee. The permit is owner-specific, and a change in ownership, density, or number of bedrooms will require a new application. The owner will submit a copy of the permit to the selectmen’s office and post it in a prominent location in the rental unit.

Signing a conditional-use permit will indicate that the owner is aware of and will adhere to the NFPA health and safety requirements listed on the permit. Failure to comply with the safety conditions can result in revocation of the permit for a period of one year. A new permit can be applied for after that time. A 30-day grace period will be allowed to correct any violations prior to revocation of the permit.

Short-term rental occupancy is based on the number of approved bedrooms listed on a town- issued building permit or as listed on a state-approved septic plan. A limit of two (2) people per approved bedroom, plus two (2) additional people will be allowed. For example, eight (8) people would be permitted to occupy an approved three-bedroom dwelling. A short-term rental will not be listed or advertised as offering sleeping accommodation that exceeds the above-mentioned limits.

Adequate on-site parking will be provided for all guest vehicles. On-street parking will not be allowed.

A short-term rental does not include boarding houses, inns, and bed & breakfast establishments which are required to be owner-occupied or manager-occupied by Bartlett’s zoning ordinance.

Accessory dwelling units (ADUs) will not be used as a short-term rental as approval of ADUs is based on decreased septic capacity.

The short-term rental use of a condominium unit may require the assent of the condominium association.

A dwelling or dwelling unit used as a short-term rental will at all times be covered by a short- term rental insurance policy.

The owner of a dwelling or dwelling unit used as a short-term rental shall register for the State rooms and meals tax and will pay all required taxes, unless the owner uses a rental platform that pays and forwards the taxes to the state of New Hampshire.

The Crucial Importance of Egress in Short-Term Rentals: Ensuring Safe Escapes for Your Loved Ones

Imagine your loved one vacationing in a picturesque short-term rental, their room cozy and inviting. But then, pause for a moment and ask yourself – in an emergency, is there a safe escape? This is a vital question often overlooked in the hustle of travel excitement. Let's look into the critical importance of proper egress in short-term rentals and why it should be a top priority for both hosts and guests.

The Life-Saving Role of Egress:

Egress, simply put, is a means of exit. In the context of short-term rentals, it's the difference between a safe stay and a potentially tragic situation. Proper egress routes ensure that in case of an emergency, like a fire or natural disaster, occupants can quickly and safely evacuate the premises. It's not just a building code requirement; it's a fundamental aspect of guest safety.

Picturing the Scenario:

Visualize someone close to you, perhaps a family member or a dear friend, staying in a charming rental. Now, imagine a fire breaks out. Smoke begins to fill the room. Panic sets in. They rush to the door, but what if it's blocked or jammed? Is there another way out? A window large enough and accessible to escape through? If the answer is no, the unimaginable could happen. This scenario is not meant to scare but to highlight the gravity of having proper egress in any rental property.

Egress Essentials:

A safe egress route in a rental property typically includes:
1. Accessible Windows and Doors: Every sleeping room must have at least two exit routes, usually a door and a window. These exits must be easy to open without the need for keys or tools.
2. Clear Pathways: Exits must be free from obstructions. A cluttered or blocked escape route can be fatal in an emergency.
3. Adequate Size and Height: Windows should be large enough to pass through and not too high off the ground. This ensures that children and adults alike can use them in emergencies.

The Ultimate Test of Safety:

As a property owner, manager, or guest, the ultimate test for safety is simple: Would you feel confident having your loved ones stay in a room with no easy means of escape? If your heart hesitates even slightly, then it's a clear indication that the safety measures are not up to par.

Responsibility and Awareness:

For hosts, ensuring proper egress is not just about compliance, but about moral responsibility. It's about providing a safe environment where guests can relax without worrying about their safety. For guests, it's about being aware and vigilant. Always check for available exit routes upon arrival and report any safety concerns immediately.

The importance of egress in short-term rentals cannot be overstated. It's a critical element that ensures the well-being and safety of guests. As the industry continues to grow, let's collectively raise the bar for safety standards, starting with the basics like proper egress. Remember, the ultimate test of a safe rental is envisioning your loved ones in it – because everyone deserves a safe escape. 

 

Summary of the Article

The article discusses a petitioned warrant in Conway that aims to regulate short-term rentals (STRs) in residential neighborhoods. Filed by Sun Publisher Mark Guerringue, the warrant, if passed, would restrict one- and two-family homes from being rented out for more than 30 days a year unless they meet state safety code standards. This rule would not apply in commercial zones. Short-term rentals are defined as properties rented for more than 30 nights a year that are not long-term leases. Properties rented for shorter periods, like 15 weekends or four single weeks a year, don’t fall under this definition. The regulation demands that STRs conform to various state safety and fire codes. Guerringue's objective is to balance property rights with community interests, aiming to slow down the increase in property values driven by investors and to improve the housing situation in town. The article also mentions opposing views from the Mt. Washington Valley Association for Responsible Rentals and highlights the challenges in enforcement and legal complexities.

Opinion on Life Safety in All Homes

The principle of life safety is fundamental and should be uniformly applicable to all homes, regardless of their rental status or frequency. A home rented for 25 days a year should not be less safe than one rented for 30 days or more. The safety of occupants should be a paramount concern, and it should not fluctuate based on rental patterns. It's perplexing why homes in commercial zones are exempt from these safety standards. If the intent of the regulation is to ensure the safety and well-being of residents and guests, then this principle should be universally applied. Allowing certain zones or rental frequencies to bypass safety regulations creates a loophole that compromises the overall intent of these laws. Ensuring life safety in all homes, irrespective of their location or rental duration, is not just a matter of regulatory compliance, but a moral imperative to protect the lives and well-being of all individuals who reside in or visit these properties.

An article in today's Conway Daily Sun discusses the reaction of Freedom's selectmen to the NH Housing Appeals Board at a recent meeting.
Here is a link to the full story: https://www.conwaydailysun.com/news/local/freedom-reacts-to-housing-appeals-boards-verdict/article_adfec3a6-b9ee-11ee-a91e-7377288f242e.html

Here is a quick summary of the key points:

• Les Babb, Selectmen’s chair of Freedom, New Hampshire, expressed his "disgust" with the N.H. Housing Appeals Board's ruling in favor of James and Susan Cotter, Massachusetts residents who own a short-term rental (STR) in Freedom.
• The case involved the Cotters versus the Town of Freedom Zoning Board of Adjustment.
• In October, the Concord-based Housing Appeals Board held a hearing on the merits of the Cotters’ case, with the decision announced on January 12.
• Freedom's short-term rental ordinance, enacted in March 2022, led to cease-and-desist letters to STR owners like the Cotters. Their property is listed on VRBO as "Charming Pet Friendly Ossipee Lake Vaca Home."
• The board's ruling implies that STR owners who rented their properties before 2022, including the Cotters, are exempt from obtaining a conditional permit and from the additional health and safety requirements of the new ordinance.
• The ruling indicates that Freedom’s ordinance applies only to STRs established after the 2022 town vote. STRs created since then must comply with a 90-day rental cap and obtain a conditional use permit.
• Babb criticized the Housing Authority for exempting some STR owners from life safety standards, which are mandatory for long-term landlords and foster child parents.
• Florio noted that some STR owners voluntarily comply with the permitting process for life safety reasons. Permit holders are listed publicly, allowing potential renters to verify.
• Matt Johnson, the lawyer for the Mt. Washington Valley Association for Responsible Rentals, questioned if the STR ordinance is truly about public safety, citing its focus on issues like parking and quiet times.
• About 40 conditional use permits have been issued in Freedom, costing $50 each. The application process involves review by the planning board, fire chief, and building inspector.
• Babb noted there's a criteria checklist for permit applicants, but no inspection is required. Town staff assist with application processes.
• Howlett inquired if the selectmen plan to appeal the ruling to the New Hampshire Supreme Court, but Babb indicated uncertainty about the town's potential success in an appeal.
• Babb expressed frustration over the Housing Authority assuming liability for life safety standards and suggested moving on to other meeting items.

If you are a short term rental owner, life safety items should always be on your mind, regardless if mandated by the town. With such little oversight on construction and code in New Hampshire, it is definitely something owners need to consider before inviting any guests (renters or friends) into their homes.

It sounds like the town of Conway's licensing program, or some version of it, will move forward whether voters pass it or not...

An article in today's Conway Daily Sun (click here for full article) breaks it down.

• Conway adopted a rental license and inspection program last year.
• Selectmen decided to present the same program as a warrant article for an April vote.
• The program will continue running until the vote and may persist even if the warrant article fails.
• Two versions of the program exist due to different legal foundations: one under selectmen's authority and the other as a zoning update.
• Public meetings are scheduled for community discussion about the program.
• A group led by planning board member Eliza Grant influenced the decision to offer the rental program as a warrant article.
• The Mt. Washington Valley Association for Responsible Rentals previously attempted to persuade selectmen to do the same.
• Despite potential voting, the selectmen's version of the program may continue.
• Selectmen will determine the program's future based on the vote outcome and community feedback.
• As of the article's publication, 127 rental licenses had been granted.
• Differences between the selectmen's version and the warrant article include the process for appeals, renewals, and compliance certificates.
• Concerns were raised about the redundancy and clarity of the program's direction.

So, it will go to the voters.... but that may not matter.  It has been quite an interesting topic to follow.

From the Conway Daily Sun - 

Full article here: https://www.conwaydailysun.com/news/local/affordable-housing-article-to-go-on-the-warrant/article_f216b980-aa77-11ee-99c0-0b144ef720ea.html

Conway's selectmen have decided to include a warrant article in the 2024 ballot, proposed by Town Planner Ryan O’Connor, to adopt the provisions of RSA 79-E, New Hampshire's “Community Revitalization Tax Relief Program.” This program aims to boost affordable housing by offering tax relief to builders who dedicate at least one-third of their new or renovated buildings to affordable units. "Affordable" here is defined as housing for people earning no more than 80% of the area's median income, which translates to a rent or mortgage cap of approximately $1,185 per month.

Some local residents expressed concerns at a meeting. Danny Allen, a rental property owner, highlighted that even rents below the proposed cap are challenging for tenants in the valley. Russell Rennie questioned the genuine public benefit of the tax break, particularly for apartments already rented below the threshold. O’Connor clarified that selectmen would have discretion over the duration of the tax relief, which could range from two to ten years based on the project's public benefit. Despite some reservations, the selectmen unanimously voted to present this proposal to voters, with Selectman Steve Porter acknowledging the concerns but emphasizing the importance of taking action on affordable housing.

An article in the Conway Daily Sun (link below) discusses the NH Housing Board's decision that will not allow Freedom's new STR policies to impact owners who were renting prior to the March 2022 rental ordinance.  Here is a link to the VRBO listing

Here is a link to the full story:
https://www.conwaydailysun.com/news/local/state-board-finds-against-freedom-on-strs/article_a69e1f12-b3a9-11ee-a139-8b007c7781a0.html

Apparently, this ruling means that the Cotters, and other owners who rented their properties before 2022, will not have to get a conditional permit, are exempt from health and safety requirements of the ordinance and are not subject to a 90-day rental cap per year.

Here are the key points from the article:

• The New Hampshire Housing Appeals Board ruled in favor of James and Susan Cotter against the town of Freedom regarding its short-term rental (STR) ordinance.
• The Cotters own an A-frame house on Ossipee Lake and have rented it out since 2004. They were represented by Matt Johnson of Devine Millimet & Branch.
• The town of Freedom was represented by Diane Gorrow of Soule Leslie Kidder Sayward.
• The Housing Appeals Board was established in 2020 as an alternative to the Superior Court for planning and zoning cases.
• The board's decision means pre-2022 property owners like the Cotters are exempt from obtaining a conditional permit and are not subject to the 90-day rental cap or health and safety requirements of the new ordinance.
• Johnson previously defeated the town of Conway in a similar case at the New Hampshire Supreme Court.
• The board stated there was no evidence the Cotters' property use was a nuisance or harmful to public health.
• Jerry DeCristofaro, president of the Association for Responsible Rentals, supports safety measures but opposes different treatment for STRs.
• The case centered on the Cotters' property at 440 Pequawket Trail, listed on VRBO. Here is a link to the VRBO listing
• Freedom enacted its STR ordinance in March 2022 and began enforcing it against properties like the Cotters'.
• The board agreed with the Cotters that their rental use of the property was a pre-existing, nonconforming use.
• The town's argument about health and safety requirements was rejected by the board, citing specific legal precedents.
• The board found no evidence of nuisance or public harm from the Cotters' STR use, and suggested traditional enforcement mechanisms for any issues.

An article in today's Conway Daily Sun (click here to read article) discusses a petition article that, if passed, would regulate short-term rentals to 30 days or less.  Here is a quick summary of the article:

• Article Focus: A petitioned warrant article proposed by Sun Publisher Mark Guerringue, aiming to regulate short-term rentals (STRs) in Conway.
• Article Provisions:
  • Limits the use of one- and two-family homes in residential areas for short-term rentals to 30 calendar days per year unless they meet state safety code standards.
  • Excludes seasonal rentals (90+ days) and traditional long-term rentals, as well as multi-family homes and condo complexes.
• Public Hearing and Voting: Scheduled for a public hearing on January 25 and will be voted on in April.
• Definition of STR: Any property rented for more than 30 days per year that isn’t a long-term lease.
• Safety Compliance: STRs exceeding 30 days must comply with state safety and fire codes.
• Article Objectives:
  • Balances property rights and controls the STR investor trend.
  • Aims to discourage investors from converting homes into hotels.
  • Seeks to slow down property value inflation caused by investors.
• Legal Drafting: Attorney Chris Meier drafted the article, focusing on legal viability.
• Enforcement: Utilization of databases tracking STRs and tax records for enforcement.
• Town's Proposal: A separate warrant article for inspecting and certifying long- and short-term rentals, also to be voted on in April.
• Support and Opposition:
  • Planning and budget committee members support the article.
  • The Mt. Washington Valley Association for Responsible Rentals criticizes its enforceability and practicality.
  • Questions raised about the exclusion of certain residential areas and the impact on existing STRs.
• Grandfathering Clause: Debate over the application of grandfathering to existing STRs.

An article in today's Conway Daily Sun discusses the controversial licensing program for rentals in Conway.  Here is a link to the article.  Below is a summary of the key points:

• Change in Rental Inspection/License Program: The Conway Selectmen have decided to let voters decide on the rental inspection/license program in April.

• Prior Landlord Licensing Requirement: Before this decision, landlords were required to have licenses to rent out properties.

• Program Modifications: Modifications to the rental inspection program include the creation of a local appeals board, a waiver process for occupied rentals, a simplified renewal process, and the issuance of certificates of compliance instead of licenses.

• Public and Official Feedback: The decision followed discussions with Deputy Town Manager Paul DegliAngeli, Conway Planning Board member Eliza Grant, and other stakeholders.

• Program Status Pending April Vote: While the program will be proposed as a warrant article, its suspension until the April vote is undecided.

• Ordinance Drafting: The rental program is being drafted as an ordinance, as opposed to its previous form of a collection of documents on the town website.

• Legal Defensibility and Support: The town counsel supports this new approach, believing it makes the program more defensible in court.

• Approval of the New Approach: The Selectmen voted unanimously (5-0) in favor of this new approach.

• Possible Revisions to Town Ordinances: If passed, this program would revise Chapter 72 of the town ordinances.

• Concerns Over Short-term Rentals: There's debate over the application of Chapter 48-A, which restricts imposing additional regulations on vacation or short-term rentals.

• Fee Distribution and Inspections: Questions remain about how fees are divided between the town and fire departments, which perform inspections.

• Draft Ordinance Details: The draft ordinance includes provisions on the program’s purpose, regulations, application and inspection processes, waiver and renewal processes, fines, appeals, and definitions.

• Potential Waivers and Renewals: The draft suggests waivers for non-compliant, occupied long-term rentals, and a seven-year renewal for properties that pass inspections and meet certain conditions.

Here is a link to the town of Conway's website with more information.