Real Estate Articles
REALTOR®: Santa Clara County D.A. asks Realtors to be aware and report suspicious incidents quickly
Santa Clara County District Attorney Dolores Carr recently informed members of the Silicon Valley Association of REALTORS® that real estate fraud is up and Realtors to be aware, make sure they check out suspicious incidents, and report them quickly.
The Santa Clara County District Attorney's office is facing enormous challenges with a tight budget and reduced staff, said Carr. The rise in investigations and complaints has tripled the workload of the D.A.'s office in the last two years. In 2001-2002, there were 32 cases investigated; in 2005-2006, the number doubled to 68 investigations and 16 convictions; 15 cases amounted to $14.5 million dollars in losses to 37 victims. So far this year, there have been 62 cases investigated.
Carr, who is the first woman to serve as Santa Clara County District Attorney, said her office receives an average of 15 complaints a month. Most of the cases involve real estate agents and mortgage brokers, she said.
The types of fraud have not only increased, but they have also become more varied and can involve more than one party in a transaction.
"It's more difficult to have fraudulent transactions without collusion by several parties," Carr indicated. "Others arise due to plain old negligence and ignoring red flags."
Types of cases being prosecuted include thefts of embezzlement involving escrow deposits of money in transactions and access to trust accounts, mortgage and occupant fraud, false employment records, inflated accounts, unlicensed agents, recording false documents, appraisal fraud, and lately, foreclosure rescue scams in the form of fake bailouts, and the old-time "bait and switch" where sellers believe they are refinancing, when they are actually selling their home. Many of these crimes are felonies, she warned, punishable by heavy fines and state imprisonment.
"What can Realtors do? Honesty is the best policy. There is no substitute for being honest and working with honest people," said Carr. "If an arrangement is too good to be true, it probably is. You need to check it out. Make reports as quickly as possible. Especially when transactions pertain to the elderly, we need quick response."
The elderly are frequently becoming targets of real estate fraud, said Carr, noting statistics show one-third of the elderly who have been targets of fraud will die at an earlier age because they cannot rebound from the experience and are less resilient physically and mentally than younger persons. Preying on the elderly has, in fact, become a hidden crime because often, the elderly do not want to report an incident because it involves a relative or they are embarrassed at being fooled.
"If you see something suspicious, contact us right away," Carr urged SILVAR Realtors and affiliates. "We have the ability to investigate cases at a drop of a hat."
To report a suspicious incident or for questions, she advised SILVAR members to contact the D.A. by phone or its Web site, the Department of Real Estate, of the Better Business Bureau.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.