What Is Real Estate Fraud?
Real estate fraud is when an agency or individual provides misleading information in a real estate transaction. It can happen in a variety of ways and can involve multiple parties, sometimes resulting in a class-action lawsuit. As an example, a seller provides inaccurate information regarding the size of townhouses or apartments they sold. In this case, the fraud can result in multiple buyers impacted by the deception.
The Most Common Types of Real Estate Fraud
While there are many types of real estate fraud, we cover a few of the most common below:
According to the FBI, in a recent press release, loan fraud is one of the fastest developing white-collar crimes in the U.S. The omission of critical data or misrepresentation of material information related to the real estate property resulting in fraudulent transactions.
Wrongly foreclosed properties can lead a homeowner to think that they lost ownership of their home, resulting in them giving up their homes and moving out.
Title fraud is when the ownership (title) of the property is changed through fraudulent methods. An example would be - an individual sells a property that belongs to another by pretending to be the owner. In a case like this, the real owner is probably not aware of the transaction.
Value fraud is when a buyer is deceived about the actual value of the property. Value fraud can be accomplished by the seller or agent omitting or misrepresenting relevant information about the property and its features.
How Can You Prevent Real Estate Fraud?
Throughout a real estate business transaction, there are many opportunities for real estate fraud. That’s why it is best if all parties involved follow specific steps to prevent real estate fraud from happening.
Below are a few ways to stop real estate frauds.
Avoid rushing real estate transactions, whether it’s selling or buying.
Do your homework, research the real estate agents and brokers involved in the transaction.
Always get an appraisal of the property you are buying or selling. This step will help establish a fair market value of the property and is usually required when financing. Problems arise when purchases are made in cash and do not require an appraisal.
Understand the property title details before you proceed with a real estate transaction. An experienced real estate closing attorney in Lake Charles, LA. will be a valuable asset in avoiding real estate transaction fraud.
Do I Need a Lawyer?
Real estate fraud is becoming a serious issue, and you stand to incur tremendous losses. Even the most vigilant and knowledgeable buyers can be subject to deception. That's why it is highly recommended you involve an experienced local real estate lawyer when investing in property.
Real Estate Fraud, Real Estate Law, Real Estate Attorneys, Real Estate Lawyers, Real Estate Title Closing Attorneys, Lake Charles, LA,
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