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.
(949) 570-5025 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.