A fraudster buys a property with the intention of reselling it at an artificially inflated price to make a sizeable profit, even if only making small improvements to it.
Illegal
property investment generally occurs when a home is bought and then sold very shortly thereafter at an inflated price. Usually, a fraudulent appraisal is also part of this real estate fraud scam. The appraisal can establish the value of the home as if improvements were made to the home when no improvements were made or only minor cosmetic changes occurred.Changing properties is a common practice in the real estate sector. It involves buying a property and then reselling it for more money. Usually, when someone changes a property, they make repairs and improvements beforehand. It can become illegal if the person falsely represents the condition and value of the property.
This amounts to fraud, with serious consequences. For example, if the person used the scam to obtain funds from a bank, they may face additional charges rather than just the illegal change of ownership. The FHA, however, acknowledged that this exemption could lead to the investment of illegal properties because houses in poor condition were sold and then resold on days with little more than a few cosmetic changes. In some cases, a person convicted of illegal change of ownership may face both penalties.
Fortunately, there are a variety of legal defenses that a California real estate fraud defense lawyer could file on your behalf; the most important of which is that you had no fraudulent intent. If done correctly, moving a home is legal, moral and ethical, and is a great way to invest in real estate without tenants, rehabilitation, or risk. Changing ownership is a common practice in the real estate industry and involves buying a property and then turning it around and reselling it for a larger sum of money, often after making some improvements. However, if Bob enlisted the help of an appraiser or mortgage broker to provide a fraudulent appraisal or fraudulent loan documents in order to justify the inflated sale price, he has committed the illegal form of change of ownership.
The change of ownership is legal, but it can cross the line and turn into fraud when false statements are made regarding the condition and value of the property. What they don't understand is that the part that is illegal isn't the transaction, it's the mortgage fraud that some people commit to finance the deal. A New York City real estate fraud defense attorney can represent clients accused of fraudulent change or participation in property change fraud. A property exchange fraud lawyer can provide you with legal advice if you are charged with a crime related to the illegal investment of a property.
When the change of ownership crosses the line and becomes a fraud offense, the defendant can face criminal charges at the federal or state level. While moving houses has earned a bad reputation in recent years due to a few bad apples, it's still a great way to get into real estate investment if you know what to watch out for.
