Protecting Clients From Deceptive Brokers and Lenders
Do you believe that you have been misled by a greedy mortgage broker or lender? Are you falling further and further behind on your mortgage as a result? McFarlin LLP has helped countless homeowners overcome the financial hardship caused by deceptive brokers and lenders in the real estate industry. With our exceptional legal team at your side, we can bring these unscrupulous individuals to justice and protect your financial future.
Call (888) 728-0044 today for a free consultation. Do not wait to get the help you need.
Negligent Brokers and Lenders
The real estate industry is highly regulated in order to protect both consumers and real estate professionals from expensive legal pitfalls. Real estate brokers are obligated by the Department of Real Estate to provide their clients with accurate information about the property in question and the financial ramifications of their decisions when purchasing or selling a property.
It is unfortunately common for brokers to purposefully fail to disclose information or provide misleading advice in order to make a sale because homeowners tend to trust the professional.
Lenders are in a similar position of authority when it comes to borrowers. Lenders may misrepresent important information about their client’s income, credit and debt, or property value in order to gain profits from the loan transaction.
Common Types of Misrepresentation
Misrepresentation essentially means providing false information in order to persuade someone into a contract. There are three recognized types of misrepresentation when it comes to real estate transactions and contracts.
Innocent misrepresentation occurs when someone has reasonable grounds for believing a false statement is true, but the inaccuracy causes substantial damages to the other party. For example, a broker may not be aware of defects in a property and provides misleading information to the buyers.
Negligent misrepresentation occurs when a person fails to determine whether the facts that he or she presents is true or false, but continues to use the information to make a sale.
Fraudulent misrepresentation involves purposefully hiding or omitting information in order to make a transaction. This type of misrepresentation requires that the person making the false statement knows or disregards that the information is untrue.
Pursuing Remedies for Victims of Misrepresentation
Proving either broker or lender misrepresentation in a real estate transaction depends on a wide range of factors. There may be physical evidence that a property contains costly defects that the broker attempted to cover up or the loan documents may be based on false information.
At McFarlin LLP, our Los Angeles real estate attorneys will investigate the details of your case to help you find a successful solution. It is possible to have the fraudulent deal rescinded or reversed. In some cases, you may be entitled to receive compensation for your losses.