How Seriously Does California Prosecute Real Estate Fraud?
California provides strict criminal provisions against fraudulent conduct during all your real estate transactions and mortgage loan acquisitions, which overlap in many ways. Under current California law, real estate fraud occurs if someone commits a fraudulent act related to purchasing, selling, renting, or financing real estate property. The overview of real estate laws in the state covers a broad range of criminal conduct, such as:
- Purchasing housing, land, commercial property, etc.
- All types of rental agreements for both private housing and commercial property.
- Mortgages, foreclosures, and more.
Real estate fraud often results in significant financial loss to consumers and businesses and, unfortunately, is on the rise in California and across the county. In response to this rise, California prosecutors aggressively pursue all credible allegations and attempt to bring down the full weight of the law on the perpetrators of this crime dire crime. Anyone convicted of real estate fraud (usually considered a “white collar crime”) faces severe penalties, including state prison time, hefty fines, and restitution. Many real estate fraud cases are prosecuted using the grand theft charge in the context of real estate fraud, and the prosecutions must prove certain factors to obtain a conviction. For example, the prosecution must prove that the defendant intentionally deceived the property owner by making a false claim or representation, the action had the intent to defraud, and the actual property owner allowed them to take ownership of the property based on false and misleading representations.
However, you must also note that grand theft, foreclosure fraud, and other real estate fraud are known as “wobbler” offenses and can be charged as misdemeanors or felonies. That said, although the California laws to successfully prosecute and protect homeowners, etc., against real estate fraud are sound and significantly severe, these cases are legally complex, and the professional help and guidance of a skilled real estate fraud lawyer is mandatory.
What is Usually Involved in a Real Estate Fraud Case in California?
First, California’s protections and laws protecting you from real estate fraud are complex. Therefore, if you have an issue, you must work with a Los Angeles-based real estate lawyer with a complete and comprehensive knowledge of their laws and the trial skills necessary to fully defend your rights and holdings. A real estate law team that routinely represents both residential and commercial real estate transactions and is familiar with cases involving alleged misrepresentation, nondisclosure, or concealment of material facts. That said, just a few types of real estate fraud cases that occur in California are:
- Highly deceptive timeshare purchase contracts and agreements
- Hiding signs of severe mold conditions in the structure.
- Failure to disclose construction defects on the part of the realtor or builder.
- Foreclosure bailouts.
- Fraud involving transfers of title.
- Home renovation fraud by contractors.
- Loan modification scams, rental or mortgage fraud, and much more.
The above are but a few myriad types of real estate fraud, and most cases involve deep investigation and analysis. So, to be successful in your case, you must have a real estate law team with deep professional experience and consummate knowledge of California’s real estate laws.
What Are Some of the Most Common Types of Real Estate Fraud?
As stated, real estate fraud and property crime take many forms, but most involve charges such as grand theft, forgery, and, recently, even identity theft. Just a few of the specific types of real estate fraud cases in California that are investigated and prosecuted are:
- Fraudulent investment schemes, typically utilizing the sale of trust deeds
- Use of forged escrow instructions to misdirect and steal escrow deposits.
- Purchasing homes with straw buyers and the forgery of grant deeds, etc.
In many cases, the perpetrator will assume the identity of the property’s valid owner or claim to represent them. By doing so successfully, the alleged thief obtains fraudulent title to the property, borrows against it, sells the property, or steals its equity. If your property is paid off or has a large amount of equity, you could be a target; sadly, the owners are most likely elderly.
Also standard are fraudulent schemes involving trusts. In this scenario, the actual owners are told to deed their property to a trust, which will make the mortgage payments until the owner recovers financially. In reality, the scammers steal the equity and acquire loans with even larger payments so the original homeowner can never get their property back.
In many cases, these schemes are difficult to prosecute but also challenging to identify until the damage is done. So, if you ever feel that you are being victimized, you must immediately seek the counsel of a Los Angeles real estate lawyer familiar with all the signs of fraud; you then have a chance to stop the damage before it’s done.
What Are Some of the Legal Options I Have If I’m a Victim of Real Estate Fraud?
Remember that each real estate fraud case differs and must be approached and defended uniquely. However, if you are a victim of real estate fraud, you must act quickly, and there are things you can do, such as:
- File for a quiet title action – This is a legal proceeding used to resolve disputes over property ownership and can be highly effective. It can help you clear any fraudulent claims on your title and restore your rightful ownership.
- Report the fraud immediately to law enforcement – Real estate fraud in California is taken seriously and vigorously prosecuted, but time is not on your side. The quicker you report even suspected fraud to local law enforcement (or the California Department of Real Estate, aka DRE), the faster it will lead to a criminal investigation and prosecution of those involved and possibly stop the financial damage before it’s completed.
- Immediately seek financial damages – Many times, if you’ve been the victim of real estate fraud, you can recover monetary damages. These damages can include compensation for economic losses, all your legal fees, and any other costs that resulted from the real estate fraud.
One of the main things to remember is don’t hesitate. Taking immediate legal action is critical to recovering your property and protecting your holdings and financial future. Gather all the facts together and consult a Los Angeles real estate lawyer as soon as possible.
I Feel I’ve Been the Victim of Real Estate Fraud; How Should I Proceed?
You must note that litigating any real estate fraud case in California will feel like entering a complex legal maze. However, there is much at stake, and you must fully understand the process, from your initial suspicion to potential courtroom battles; this is critical for anyone considering legal action. That said, if you suspect you’re the victim of a real estate transaction, you must have professional assistance to navigate the complexities of real estate law successfully. The highly skilled and experienced real estate lawyers at Gomez Law, APC, are passionate, professional, and highly successful at protecting California’s property owners from losing all they’ve acquired due to real estate fraud. Call them today at (213) -772-6404 for a free consultation on your unique case and obtain the peace of mind you require at this difficult and stressful time.
