What is Real Estate Fraud?
Real estate fraud takes many forms, but they all aim to financially abuse the opposing party in property transactions. Here are some prevalent types of real estate fraud:
- Title Fraud: Someone steals property ownership by forging documents.
- Mortgage Fraud: Using fake info to get a mortgage or increase property value.
- Foreclosure Fraud: Scammers steal money or properties from those facing foreclosure.
- Rental Scams: False listings of properties that are not for rent or are already occupied.
Signs of Real Estate Fraud
To protect yourself from real estate scam, check for the following signs:
- Unsolicited Offers: If someone offers to buy your property without being asked, they might be targeting you.
- High-Pressure Tactics: Scammers may rush you to act fast, claiming another buyer is waiting.
- Suspicious Documents: Errors like spelling mistakes in documents can be a sign of fraud.
- Unusual Payment Methods: Be cautious of payments that avoid banks, as banks help prevent fraud.
When to Contact an Attorney?
Act Quickly: If you believe you are a scam victim, contact a real estate attorney right away.
Quick Action Helps: Acting early allows the attorney to obtain evidence and recover your money or property more quickly.
Prevention is Key: You don’t have to wait to become a victim—attorneys can help you avoid frauds.
How an Attorney Can Protect You from Real Estate Scams?
Preparing Custom and Legal Records
Protect Your Interests: Real estate attorneys tailor contracts to your specific requirements.
Custom Documents: They can draft purchase agreements, title papers, and closing documents.
Evaluate Contracts to Prevent Fraud/Bad Deals
Real estate attorneys conduct extensive due diligence to ensure that potential real estate transactions for home buyers or sellers are legitimate.
During the review process, attorneys can:
- Research the property’s history.
- Check the property’s ownership and insurance.
- Find out how the property can be used (zoning).
- Make sure there are no unpaid taxes or bills.
Sometimes the attorney reviews a paper trail to uncover missing details, data that does not match a legitimate individual, or other issues.
Assist in the Closing Process
Review Closing Papers: Real estate attorneys ensure that all necessary documents are completed.
Address Fraud Issues: They ensure that any fraud concerns are addressed before the property transaction is completed.
Eliminating Misunderstandings
False Accusations: You can be wrongly accused of fraud, even if you acted honestly.
Legal Risks: Without knowledge of real estate law, you could face criminal charges.
Think Ahead: Explore your legal options before taking action in your case.
Conclusion
To safeguard yourself from real estate fraud, it’s advisable to engage a legal professional to guide you through the entire property transaction process. If you suspect fraudulent activity or have concerns about real estate documentation, consult the attorneys. During an initial consultation, one of our experienced real estate lawyers will assess your situation and outline your potential legal remedies.