Real estate fraud arises when someone uses deception to extract money from someone or a company using a scheme that involves buying, selling, renting, or otherwise owning a property. In other words, real estate fraud involves using deceptive acts to unfairly profit from real estate transactions. This type of fraud can take various forms, including title fraud, mortgage fraud, foreclosure scams, rental scams/phantom rentals, and investment scams. Unfortunately, real estate fraud is a major issue in the United States of America. According to the Federal Bureau of Investigation (FBI), in 2021, 11,578 people fell victim to real estate fraud. These individuals lost over $350,000,000. If you suspect real estate fraud, it is vital to take steps to protect yourself and your hard-earned money. Here are some steps to take if you believe you may be a victim of real estate fraud.
The first step is to understand the signs of real estate fraud. You want to be sure that what you suspect is fraud is not just a misunderstanding but a legitimate concern. The following are some common signs of real estate fraud;
The next step after determining what you suspect is potential real estate fraud and not a misunderstanding is collecting evidence. Evidence is necessary for supporting your claims if you report the fraud, consult an attorney, or pursue legal action. Gather all the relevant information and documentation relating to the transaction. This may include purchase agreements, communication records, property documents, advertisements and listings, and financial transactions, among many others.
If you are a buyer and suspect real estate fraud, it is vital to avoid making any payments until you have confirmed the legitimacy of the transaction. If you have already made some payment, do not pay any more money. By avoiding making any or more payments, you can protect yourself from falling further into the scheme.
Consulting a real estate lawyer is one of the most vital steps you can take if you suspect real estate fraud. If, indeed, you are a victim, an attorney can help you understand your legal rights. They can help you understand your legal options and potential remedies. A skilled real estate lawyer can assess the strength of your case based on the available evidence and advise you on whether to pursue further action.
After speaking to an attorney, they will advise you on where and how to report the suspected fraud. Depending on the specifics of your case, you may need to contact the police or another entity, such as the Federal Trade Commission (FTC).
If an attorney advises pursuing legal help, do so with their help. Do not attempt to handle a legal claim without an attorney. If you have already been defrauded, pursuing legal action can help you recover losses, seek justice, and hold the wrongdoer(s) accountable.
If you suspect real estate fraud and need legal help, contact our qualified San Francisco real estate attorneys at SAC Attorneys LLP.