Real Estate Fraud, Hard to Spot

So you've purchased that perfect house that's been completely remodeled inside and out. Unfortunately, you didn't think to check if the work was permitted. Unbeknownst to many, work that is unpermitted is not only illegal for resale but also a potential liability if it leads to injury for any future resident or guest. Even more disturbing, that newly remodeled kitchen may be hiding knob and tube wiring even though the listing stated new wiring. To fool inspectors, it is not uncommon to find new wiring at the receptacles tied illegally to old knob and tube wiring. Since inspectors cannot see inside walls, such issues often go undetected regardless of the hazard.

Sometimes the signs of fraud actually begin with the agent. That little “oversight” of the type of flooring for example that the realtor didn't want to mention like fact that the flooring is Linoleum instead of ceramic tile or that the GDO (garage door opener) doesn't exist because the overhead door is not automatic. A careful look at listings often reveals not only discrepancies often of household features but also double listings. Ever see a house listed with an exercise room? Most people would assume this is a bonus room but an actual viewing might show the room is really a tiny third bedroom that's been listed twice. You can't have it both ways realtors! If the room has multiple purposes fine, but don't list it separately under two categories! Unfortunately, these are just a tiny fraction of the games some agents will play to sell houses.