Real Estate Fraud

In the real estate industry, there is often a lot of money at stake. Because of this, real estate agents work hard to get the sale. However, they must abide by a code of ethics in doing so. If they do anything dishonest or unethical, they can lose their license.

Real estate fraud is common in Florida and anyone can engage in it, including the agent, buyer, seller, lender, or a third party. What a real estate agent does or does not do during the course of the transaction can lead to ethical violations, which can lead to license loss, fines, and other punishment.

Scams in the real estate industry may include wire fraud, loan flipping, misrepresentation, and rental scams. Read on to discover some of the most common real estate scams involving agents and brokers.

Examples of Agent/Broker Fraud

One of the biggest types of fraud committed by agents and brokers is misrepresentation. An agent may misrepresent the home or even themselves. For example, an agent may lie about their experience or credentials in order to get the home seller to choose them over other agents. Then, in order to sell the home quickly and for the highest price possible, they may lie about the home. They may exaggerate some of the features, lie about the age of the home, or exaggerate the square footage and dimensions.

Misrepresentation may also come about in the form of non-disclosure, particularly to buyers. If the home has an issue or did not pass an inspection, potential buyers need to know about this. Lying about the home’s defects or failing to bring them up can make buyers feel cheated, as they might not have bought the house had they known about the home’s history.

Financial scams are also common. A broker may charge a client for various issues, such as for inspections, paperwork, and other fees that suddenly arise. Brokers often continue to engage in these lies and scams until they are reported.

If you are a real estate agent or broker, make sure to do the ethical thing at all times. If a client has been wronged by you, you could be sued for damages. Not only will you have to pay restitution to the victim, but in some cases, you could even face criminal charges. You could even lose your real estate license and never be allowed to work in the industry again.

Keep Your License With Help From a Tampa Real Estate Broker License Lawyer

Real estate fraud can happen at any point. When real estate agents and brokers are involved, they can lose their license.

Have you been accused of real estate fraud? If so, seek experienced legal help from a Tampa real estate broker license lawyer from The Law Offices of David P. Rankin, P.A.  I have been involved in several hundred license discipline proceedings before the Florida Real Estate Commission and was the attorney for the Greater Tampa Realtors for 18 years. Schedule a consultation by calling (813) 968-6633 or filling out the online form.

Source:

bankrate.com/mortgages/avoid-real-estate-scams/