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

Case Overview:

Ms. Chen lives in SAN Jose, Calif. She plans to buy a property as an investment. Ms Chen met a seller, Mr Lee, through a property agent. Mr Lee claimed to own a prime property in Silicon Valley and was willing to sell it to Ms Chen at a below-market price. Ms Chen signed a contract with Mr Lee to buy the property and paid a 10 per cent deposit, totalling $100,000. However, when she went through the transfer process, Chen discovered that the actual owner of the property was not Li, but another company. Ms Chen realised she might have suffered a real estate transaction fraud.

Legal Response:

Initial consultation and evidence gathering:
Ms. Chen contacted our law firm and explained the situation in detail. The lawyer advised her to keep all documents and evidence related to the purchase transaction, including the purchase contract, payment vouchers, correspondence records with Mr Li, etc.

Calling the police and investigating:
Ms Chen immediately lodged a report with the local police, providing all relevant evidence. The police accepted the case and began an investigation. The police investigation found that Mr Lee did not actually own the property and that he had impersonated the owner to commit the fraud. Police also found that Mr Lee had multiple similar cases of fraud in real estate transactions, 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 Chen's behalf and had a full debate.

Outcome and Summary:

Under the pressure from the law and the police, Mr. Li eventually admitted his fraudulent behavior and agreed to return the $100,000 deposit that Ms. Chen had paid. Although this incident brought inconvenience and psychological pressure to Ms. Chen, it also prompted her to be more cautious in her future investment decisions. She deeply realized that when conducting large transactions, it is necessary to conduct comprehensive due diligence to ensure the authenticity of the other party's identity and property rights.