Transnational real estate transaction fraud: How to protect the property and avoid being cheated in the transaction
Transnational real estate transaction fraud: How to protect the property and avoid being cheated in the transaction
By : Kobre & Kim LLP
Case Overview:
Ava lives in San Jose, California. She plans to buy a property as an investment. Ava met a seller named Chloe through a real estate agent. Chloe claimed that she owned a prime property in Silicon Valley and was willing to sell it to Ava at a price below market value. Ava signed a contract with Chloe to purchase the house and paid a 10% deposit, totaling $100,000. However, when going through the transfer procedures, Ava discovered that the actual owner of the property was not Chloe, but another company. Ava realizes she may have been the victim of real estate fraud.
Legal Response:
Initial consultation and evidence gathering:
Ava contacted our law firm and explained the situation in detail. The lawyer advised her to keep all documents and evidence related to the house purchase transaction, including the purchase contract, payment receipts, and communication records with Chloe.
Calling the police and investigating:
Ava immediately reported the case to the local police and provided all relevant evidence. The police accepted the case and started an investigation. Police investigations revealed that Chloe did not actually own the property and was pretending to be the homeowner to commit fraud. Police also discovered that Chloe had multiple similar real estate transaction fraud cases, with victims spread across multiple states.
Litigation and arbitration:
The court accepted the case and scheduled a trial. During the trial, the lawyer presented all the evidence on behalf of Ava and conducted a full debate.
Outcome and Summary:
Under legal and police pressure, Chloe finally admitted her fraud and agreed to return the $100,000 deposit Ava had paid. Although this incident brought inconvenience and psychological pressure to Ava, it also prompted her to be more cautious in future investment decisions. She deeply realized that when conducting large transactions, she must conduct comprehensive due diligence to ensure the authenticity of the other party’s identity and property rights.
