Red Flags In Real Estate Fraud
Here are examples of red flags during a real estate transaction. Be wary if you:
• Are asked to pay cash.
• Are asked to pay for something “on the side,” “outside of escrow,” or “after closing.”
• Are asked to pay a real estate agent directly or are asked to pay upfront fees.
• Are dealing with unlicensed agents or unlicensed brokerage companies.
• Are offered a “forensic loan audit.”
• Are dealing with “attorney-backed” businesses or law offices that refuse to provide an attorney’s name or State Bar number.
• Come across programs and companies that claim to represent Federal or State agencies or programs.
• Are given a sales pitch with logical holes, lack of details, or assumptions.
• Meet with salespeople who fail to discuss possible risks along with possible rewards. All investments carry a risk.
• Are asked to lend personal funds to an investment plan secured only by a personal note, or otherwise unsecured.
• Encounter lack of an actual business office, unwillingness to meet in an actual office, or refusal to meet in person.
• Are not provided with required State and Federal disclosures early in the real estate transaction.
• Are asked to transfer title.
• Are encouraged to make payments to someone other than your servicer.
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DAVID S. FISHER, ESQ.
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