[svandamme]

Over here, as a buyer if you get a mortgage, you never even get your hands on the money.
The bank will come with you to the notary for the signing of the house. And the notary will pay out to the seller. You don't even get to touch the bank cheque, and even if you did, it's not in your name. You couldn't cash it.

The Seller on the other hand, if he has a mortage on the house he sells, he won't get the money either. the Notary will divvy up the money received, pay off the existing mortage first. and pay out only the difference...

You can't sell a house with a mortgage on it, and not pay off the mortage .. can't sell it off hand and run off with the cash. Impossible.

The only kind of fraude with house sales we know off, is people who make an agreement to buy a house, and who stupidly pay a cash advance when they sign the agreement.
Sensible people would again go to the notary, who they need anyway to get the title signed over.. And deposit that cash advance in escrow with the notary.. Who does that for free anyways.

Buyer and seller are both free to choose their own notary. At no extra cost you can have your notary co-chair with the seller's notary.. Second pair of eyes and they split the fees.