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What are examples of real estate fraud?

At its very basic level, an act of fraud occurs when one person intentionally misleads another person in order to get money or another desired resource out of the deceitful interaction. Minnesotans are subject to attempted frauds in many realms of life; whether they fall for those attempted tricks depends upon how carefully they pay attention to the actions of others.

Fraud is present in the real estate world as well. There are a variety of ways that it can appear before, during and after a real property transaction. A suspected act of fraud in a property sale can lead to a real estate dispute and even real estate litigation to settle the matter.

One common form of real estate fraud hits when homeowners are in times of great need. Many deceitful companies allege to help individuals facing foreclosure by helping them pay down their mortgages. These fraud-perpetrating groups often require money-strapped homeowners to pay for services in advance; often after a person who is desperately trying to avoid foreclosure sends it cash, the organization disappears without rendering any services.

Fraud can also occur in the sale of a flipped house. A house is considered “flipped” when it is taken from a state of disrepair to one of habitability and sold for a profit. While some flipped properties are fully legal and legitimate sales, others are not. Incomplete, improper and bad workmanship in the repair of a flipped home can all be signs of possible fraud.

There are many other ways that a person may find himself subject to real estate fraud. Getting through a property fraud matter can be difficult on victim of the fraudulent act. From proving the fraud to getting damages for any losses he sustained in the transaction, a victim of real estate fraud often must work hard to return his life to the position it was in before he suffered the fraudulent act.