Purchasing or selling real estate in New York can be a complex process. Each step requires understanding various laws and regulations. And it only takes one slip-up to fall prey to a fraudster.
Understanding when to call an attorney is vital for protecting yourself when engaging in the real estate market. An experienced real estate attorney can assist you in avoiding or fighting back against fraud.
What Is Real Estate Fraud?
Real estate fraud comes in various forms, but they are all designed to financially exploit the other party (you) in property transactions. These are common types of real estate fraud:
- Title Fraud occurs when someone illegally transfers a property title without the owner’s consent. It involves forging documents either to gain ownership of a property or to sell a property the fraudster doesn’t own.
- Mortgage Fraud is when someone uses false information to secure a mortgage or increase a property’s value. If you’re purchasing a property, it’s vital to confirm its value using accurate information.
- Foreclosure Fraud is when scammers steal money or entire homes from people facing foreclosure. It typically involves false promises to rescue the property for the owner.
- Rental Scams involve scammers putting properties they don’t own on rental websites. Sometimes, these properties are vacant, but other times, they already have existing tenants. Either way, you won’t get the property you rented.
Signs of Real Estate Fraud
To protect yourself from real estate fraud, be on the lookout for the following signs:
- Unsolicited Offers – If someone offers to buy your property unsolicited, they may be testing the waters to see if you’re their next target.
- High-Pressure Tactics – Fraudsters often create a false sense of urgency to make their targets act quickly without taking time to think, such as by saying someone else is ready to purchase the property they’re selling.
- Suspicious Documents – If you notice spelling or grammar mistakes or other errors in the documents they provided, it could be a sign that they’re fake.
- Unusual Payment Methods – Payment methods that circumvent your bank should raise an alarm. Banks have robust anti-fraud policies that fraudsters often want to avoid running into.
When to Call an Attorney
If you suspect you’re the victim of a real estate scam, contact a real estate attorney so they can get started on your case. Contacting an attorney sooner rather than later can improve their chances of collecting evidence and could mean you get your money or property back without waiting too long.
You don’t need to wait until after you’ve become a victim to contact a real estate attorney. Attorneys provide various services meant to protect you from falling prey to scammers in the first place.
How an Attorney Can Help
A knowledgeable real estate attorney can assist you by:
- Providing legal advice, such as explaining your legal rights so you can make informed decisions
- Reviewing documents before you sign them to make sure they’re legitimate and comply with local and state laws
- Assisting you in recovering your financial losses and seeking compensation from the party that defrauded you
- Preventing the opposing counsel from taking advantage of you in settlement negotiations
- Representing you and your best interests at trial if settlement negotiations fail.
New York Real Estate Litigation Attorney
The best way to protect yourself from real estate fraud is to have an attorney by your side throughout the entire property buying or selling process.If you suspect you’ve been the victim of real estate fraud, or if you have suspicions about a real estate document, contact the attorneys of Levy Goldenberg. During your initial consultation, one of our experienced real estate lawyers will review your case and explain your legal options.