Illegal Real Estate Fees
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What Is Real Estate Law?
Real estate law regulates the process of buying and selling a home or commercial property. It provides protection for anyone buying and selling a home and who enter into a contract with contractors, builders, and real estate agents. Real estate law also protects buyers from paying illegal real estate fees.
What Are Illegal Real Estate Fees?
These are fees paid by a buyer or mortgage borrower during a real estate transaction that they are not supposed to pay. A real estate transaction can take many forms from buying a home to acquiring a mortgage. It can also be a fee paid from one party to another to obtain business.
What Is an Example of an Illegal Real Estate Fee?
One example occurred in 2013 when the Fidelity Title Insurance Company settled a $2.3 million case alleging real estate fraud. The title company was accused of paying real estate agents kickback fee, or an incentive, in exchange for service providers using their company. A title company provides insurance for property owners to ensure there are no liens or defects against the properties. Typically those completing a real estate transaction have a choice regarding which title insurance company receives their business.
Another example happened to California homeowners who were trying to save their homes from foreclosure, but were victims of a scheme. They allegedly paid upfront fees ranging from $1,000 to $10,000 to eliminate mortgage debt. The debt was never satisfied by the people receiving the upfront fees.
Is Charging Illegal Real Estate Fees Fraud?
Yes, it is. Real estate fraud happens when a party intentionally uses some sort of misrepresentation or false information to obtain a competitive edge in a real estate transaction.
Should I Contact a Lawyer Regarding Illegal Real Estate Fees?
Yes. Contact a real estate lawyer if you believe you are a victim of an illegal real estate transaction. They can assist you in recovering any damages you may be entitled to as a result of an illegal real estate transaction and help protect you from further harm in connection with the transaction.
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Last Modified: 10-28-2015 01:06 PM PDT
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