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Writer's pictureJerry Ipsen, CFE, MBA

Common Types of Real Estate Fraud

Real estate fraud occurs when individuals or agencies provide false information for fraudulent real estate transactions. Attorney Mark Mellor writes in his article that fraud happens when a seller provides false information to an unsuspecting buyer that has a negative financial impact. When involved in any real estate transaction, accurate and transparent property information is critical. The common types of fraud found in real estate are:

· Value fraud which occurs when a seller provides a buyer with false information about the real estate property’s actual value.

· Mortgage fraud happens when material information or crucial data relating to property results in one or multiple fraudulent transactions because of misrepresented material information.

· Title fraud like you’ve seen on television occurs when the ownership of a property falsely changes or is occupied using fraudulent methods.

· Foreclosure fraud like Title fraud occurs when a property is wrongly foreclosed on, resulting in the homeowner moving out and giving up their home.

· Syndicator fraud is an individual or entity that organizes investor groups like a REIT to contribute money into massive funds. The situation becomes fraudulent when the syndicator collects investment money and money for suspicious fees under false pretenses without a legitimate investment opportunity.


Jerry of Ipsen Due Diligence is available to investigate and document your case in preparation for legal action.




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