Land sales are common, but real estate fraud could easily damage the investments of landowners in North Carolina or South Carolina. Hundreds of thousands of people in North Carolina own or invest in real estate properties across the state, whether they are family homes or part of a strategic investment plan. In both cases, these properties can provide great value and benefits for the owners. However, recent trends in fraudulent or unfair business practices could lead to financial trouble and costly legal action for property owners in the Carolinas or Tennessee.
Fraud can be difficult to predict or detect, and it often targets older property owners or people with undeveloped or large properties. Understanding how scammers and unethical businesses could threaten the value of a property can help landowners prepare and prevent these cases. However, due to the complexity of the issue and the constantly changing nature of scams and unethical business practices, sometimes mistakes happen.
Victims of unfair or deceptive land sales may benefit from the assistance of a North Carolina attorney from King Law Offices. Schedule a consultation with a Forsyth County attorney today by calling the office at (888) 748-5464.
What Are Fraudulent Land Sales?
Any property deal in North Carolina, South Carolina, or Tennessee has a distinct process, often involving realtors, brokers, sellers, and buyers. While the exact process may vary in each sale, the numerous steps in this process often present an opportunity for fraudulent and criminal activity. Fraudulent or deceptive property deals can impact anybody, but there are certain patterns in victims and strategies. Understanding these can help victims take preventative action and understand how best to advocate for their legal rights.
Fake Seller Scams
The North Carolina Real Estate Commission warns property owners of a common real estate fraud scam involving fake buyers and sellers. In these scams, a scammer will attempt to sell a property that already belongs to an individual. These criminals often utilize fake IDs and falsified documents to convince the real estate agent that they own the property. The realtor will then market the property listing and find a buyer, sometimes even completing the sale and transferring money to the fake seller before the ruse is discovered.
Unfair or Predatory Agreements
However, scams are not the only type of real estate fraud. There is another type that may not be as dramatic, but may be even more sinister. Unethical real estate companies may employ deceptive practices to convince real estate owners to sign over the exclusive right to list a house for a small payment to the homeowner, jeopardizing their property rights. However, while most contracts like these sign over this right for several months, these unfair agreements may bind the property owner for up to forty years. The property owner is then unable to switch to another real estate company, while the unethical real estate company takes no action to market the property. These contracts leave property owners trapped, and often have punishing termination clauses that keep them from exiting the agreement.
For more information on deceptive land sales, speak with a skilled North Carolina attorney from King Law Offices.
Who Are the Victims of Real Estate Fraud?
Anyone can be a victim of real estate fraud, but scammers and unethical companies often have favorite targets that may be at a higher risk. For fraudulent land sales, scammers often target underdeveloped or large properties. This allows them to create a convincing facade with less chance of the property owner or neighbors noticing. Some scammers even posted actual for-sale signs and brought realtors to visit somebody else’s property under false pretenses.
Additionally, elderly property owners are the target of many scams, and real estate fraud is no exception. Scammers may count on elderly people to have fewer resources for detecting scams and take advantage of them financially. While this may hold for false land sales, it is especially true for unfair contracts and agreements. Fraudulent companies may use complex legal terminology or social engineering tactics to convince their clients to sign unfair deals.
Unfair Real Estate Agreements Act
Fortunately, the state of North Carolina has taken notice of these unfair real estate deals and has written legislation against certain manipulative or deceptive actions. Called the Unfair Real Estate Agreements Act, it is designed to help prohibit real estate deals that take advantage of the residential real estate owners described above. This act is intended to make these unfair agreements unenforceable and protect the victims of these unlawful actions. This may also protect homeowners from real estate companies unlawfully putting a lien on a property. Fake seller scams are also generally considered fraud and may be charged as a white collar crime.
What Legal Action is Available to Victims of Real Estate Fraud?
For those who have suffered damages from fraudulent land sales, there may be legal action available to resolve the matter. The Unfair Real Estate Agreements Act may help protect victims of deceptive contracts and real estate deals. This act may nullify the effects of the agreement, potentially voiding the contract. As for real estate fraud scams, the legal process may be more difficult.
Ideally, the authorities will apprehend the perpetrator, who will then face justice so that the defrauded parties can receive compensation. However, scam artists and other criminals are often skilled in evading the law and disguising their identity. In a worst-case scenario, a scammer could disappear before the parties involved even realize they have been deceived. In this case, the defrauded parties may need to reach a settlement together in court.
Speak to an Experienced North Carolina Attorney Today
Deceptive land sales can quickly become an all-consuming issue full of stress and frustration for those who have been defrauded. Whether a victim of a scam or an unfair or unethical real estate contract, these legal issues can be detrimental financially and mentally. While there are solutions for real estate fraud, these solutions often require familiarity with North Carolina or South Carolina state law and experience with court procedures. A skilled North Carolina attorney from King Law offices can evaluate your case and provide legal insight into how to proceed. Schedule a consultation with an attorney today by calling the office at (888) 748-5464 to learn more.
