Categorized | Residential

Fraud in the Real Estate Industry

Fraud in the Real Estate Industry
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Fraud is very common in many areas of the economy and the real estate industry is not left out. Fraud refers to using false means to get funds or other property from other people. These fraudsters present very interesting stories to unsuspecting people and getting money and other properties out of them. Some are bold enough to extend their activities to the banks and other financial institutions.

Recently, a real estate agent was jailed for defrauding a bank. He was alleged to have presented several loan applications to the banks under false names to purchase houses at very high prices. This is a well known and licensed estate agent and so no one suspected what was going on in the early stages.

Real estate fraud presents itself in many forms and ways. In some parts of the world, fraudulent estate agents sell the same property to more than one person. These people are left to litigate the property, each claim the ownership.

Most of these properties lack proper documentation and so none of the properties can actually claim ownership from the courts and will be forced to leave the property alone. Some of the agents also sell properties to people at prices higher than usual. Others go to the extent of taking false loans from the banks.

When buying real estate properties, one therefore has to be careful. Be sure to see all the necessary documentation before making payment. Banks should also scrutinize loan applications very well before approval.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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