What Is Real Estate Fraud?
Real estate fraud occurs when one party intentionally uses false information or false representation in order to gain an advantage during a real estate transaction. Real estate fraud can come in many forms, and may involve more than one party. Some real estate fraud claims can involve many victims, resulting in a class action lawsuit.
For instance, a seller may make misrepresentations when it comes to defects in the home, or when it comes to the sales price. Such misrepresentations are not allowed under real estate laws, and may result in severe legal penalties.
What Are Some Common Types of Real Estate Fraud?
Real estate fraud can occur at various different points in the transaction, and can involve many different issues. Some common types of real estate fraud include:
Mortgage fraud: This can include fraudulent contracts, dishonest interest rates, and unfair monthly payment terms.
Foreclosure fraud: Some persons may seek to obtain title to a home through fraudulent foreclosure schemes.
Misrepresentation of credentials: You should beware of persons who hold themselves out to be real estate agents or brokers, but are practicing illegally. Be sure to check for credentials when dealing with real estate professionals
Listing agreement fraud: There are various laws dealing with how a home can be listed in a local real estate listing. Violations of these laws can sometimes be the subject of a lawsuit.
Other types of real estate fraud may involve fraudulent deeds and titles, fake documents, and fraudulent representations of boundary lines.