Strategic Advocacy for Property Disputes – Real Estate, Land-Based and High Value Personal Property Litigation Lawyers
Toronto Real Estate Fraud, Mortgage Fraud and Property Investment Fraud Lawyers
At Gilbertson Davis LLP, our team of real estate fraud, mortgage fraud and property investment fraud lawyers have experience in dealing with fraud claims before the courts, representing those victimized by or falsely accused of fraud.
Real Estate, Mortgage and Property Investment Fraud Schemes
When it comes to real property, fraudulent schemes can arise in a variety of ways, including:
- title fraud
- home-equity fraud
- fraudulent property investment schemes
- online private sale scams
- mortgage fraud
- investment fraud
- construction fraud
Though each scheme may be unique, generally these schemes involve a fraudster either purporting to own property or purporting to secure investments in property on behalf of innocent lenders, often relying on forged documents, fictitious property or investments and the use of identity theft to appear legitimate. The victimized lender investor is often provided with false comfort about the security and validity of the proposed scheme, sometimes with the complicity of others.
Victims of Real Estate, Mortgage and Property Investment Fraud
Real estate fraud can impact all the parties involved in a transaction, including:
- real estate agents and brokerages
- real estate lawyers
- mortgagees and lenders
Misrepresentations as to Profitability
Even when an investor has made an investment that will be secured against a property, they still may suffer a loss if the investment was made with the intention of making a profit, and in reliance upon misrepresentations made by the vendor, developer or promoter as to the profitability of the property or its value.
Such misrepresentations are likely to result in a greater investor loss where the investment was induced by a misrepresentation of the expected return on the investment from a share of the profits from the anticipated renting or re-selling of the property.
In such cases, investors may have relied upon projections, purported analysis or representations made by the property owner or developer who has made such statements without any consideration as to their accuracy.
In some circumstances, investors who have relied upon such misrepresentations may obtain a court-ordered rescission (setting-aside) of their investment agreement, and additionally damages. In some cases, the court will order only damages.
Where the lack of profitability of an investment in property relates to mismanagement of the property, investors may have grounds to seek oppression remedies under the Condominium Act, if applicable, or the relevant business corporation statutes, which can include statutory urgent injunctive relief or a court-appointed manager to oversee the management of the property.
Prompt legal representation may provide a victim of fraud with the opportunity to seek urgent court relief to:
- investigate bank accounts and other documents to determine whether a fraud has occurred or where the stolen funds are being held
- finding, inspecting and preserving evidence of the fraud
- freeze assets and accounts to prevent stolen funds from being further dissipated
- set aside a freezing order obtained without notice where such an order should not have been granted
- vary a freezing order obtained without notice where necessary to pay for reasonable legal and living expenses
- register Certificates of Pending Litigation against property where an interest in the property is in dispute, or move to set aside Certificates of Pending Litigation when they are frustrating a valid sale
Contact Us Without Delay
If you are involved, or have been affected in a real estate fraud, mortgage fraud or property investment fraud, please contact us for an initial consultation.
Related Practice Index
Dating and Relationship Fraud
Enforcement of Judgments for Fraud
Fraud Claims Against a Bankrupt
Internet | Online Fraud
Investment Fraud Litigation
Property Investment Fraud
Setting Aside Fraudulent Conveyance