Avoiding Real Estate Fraud

As with any business, fraud can exist and even tempt people into doing things they would ordinarily not do. The obvious is that people commit fraud because it is tied to a financial gain. Professionals in the real estate market may find themselves involved in fraudulent activity, whether it is directly or indirectly.

As REALTORS® we are compensated by way of commissions, referrals, and sometimes fees. We also adhere to a Code of Ethics that helps protect the public, our clients, and hold up our profession to the highest standards. If one knows of an activity that may violate the Code of Ethics, one should report these actions to their local board.

One of the most important issues at the forefront is fraud. A real estate professional should always avoid the temptation of potential fraud for the sake of higher compensation. Greed will get an individual entangled with inappropriate activities and funds that may be involved in criminal activity. The potential for extraordinary compensation tied to criminal activity is never worth one’s livelihood. Often times the public suffers the consequences of such criminal activity and the REALTOR® loses their license, faces criminal charges, convictions, and may face prison time. The real estate professional community also gets tainted with the bad stigma because of the loss of trust in our profession.

The bottom line is that if something seems off, it probably is. A REALTOR® should talk with their broker to discuss any issues they feel may be illegal, and as always, one can get law enforcement involved.

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