Even though the Orlando real estate market is booming, the industry is always full of scammers and fraudsters, who are involved in questionable acts, just to have monetary gains. As much as these frauds or scams are prevailing or increasing at an unprecedented rate, the more sellers or buyers are falling prey to such tactics or schemes. These schemes are devised by people who tend to take wrongful advantage of those individuals, who have recently stepped into real estate market.
Hence if you too have recently joined the real estate market, then the Windermere Florida realtors warn us to look out for the two major frauds, which include;
According to Clermont Florida realtors, perhaps the most common fraud in the real estate industry is the title fraud. As the name suggests, this misconduct involves the theft of an individual’s identity. The scammer involved in this fraud use forged documents of ownership, including some other essential documents, and poses him/herself as the rightful property owner.
Hence, once the fraudster successfully convinces people of his/her legitimacy as the real property owner, the fraudster uses the forged documents to avail many mortgage and other types of loans. As soon as the fraudster successfully receive the loan amount, he/she simply flee away with all the money, leaving the original owner behind, to release the future repayments of a loan which he/she didn’t even apply for.
In certain situations, the fraudsters directly sell off the victim’s property. They use the forged documents and pose themselves as the real property owner. This is one of the easiest and quickest ways for them to earn instant money. However, this scam or fraudulent activity not only create legal issues for the original owner of the property, but it also put the buyer of the property in a difficult position as he/she had already paid the amount to purchase the property.
After the title fraud, another major prevailing fraud in the real estate industry is the value fraud. This fraudulent activity is detrimental to both the lenders as well as home buyers as the Windermere Florida realtors suggest. This particular fraud is about convincing people to believe that the property’s value is actually more than the actual value.
The fraudsters involved in this type of real estate misconduct, simply misrepresents the subjected property’s features. The property’s features are made to appear much more enticing than they are, existing in fact. This is one of their tactics to convince people of the falsifying fact that the subjected property holds much higher value than it has currently.
Since every seller wants to receive higher price against the property on sale, they also believe in the created hype and start omitting or disguising the poor or unlikable features of subjected property in order to draw or receive a higher price. Therefore, it is important to understand these major real estate frauds so that you can look out for such scammers or fraudsters while selling or buying a property.
Meanwhile, if you need valuable professional insight about your real estate affairs, head over to Megan Dowdy straight away!