Buying or selling a house is often the most important financial transaction of your life. It makes sense to be careful when
proceeding, especially since real estate transactions are complicated and offer ample opportunity for untrustworthy
people to take advantage of the less experienced. Common sense dictates that you spend time informing yourself about
the people with whom you are involved and the nature of the transaction you’re considering.

In California, you should contact the Department of Real Estate to confirm that agents and others are properly licensed. Also,
don’t be shy about asking questions, researching the situation and learning as much as you can about the transaction you’re about to engage in.

The California Department of Real Estate recently published an informational piece titled Preventing Real Estate Fraud: How to Protect Yourself and Your Home. Among its other useful suggestions are the following:

Never pay cash. Credit cards and checks are more secure.

Be wary if asked to pay upfront fees, pay a real estate agent directly or pay something “on the side”, i.e. outside of escrow or after closing.

Be wary if asked to transfer title or if you’re not provided with required Federal and State disclosures early in the transaction.

The Department’s publication has other valuable suggestions worth considering.

When it comes to real estate deals, the age old adage is usually correct: If it’s too good to be true. It probably is!

Schein & Cai handles real estate disputes, including arbitration and litigation arising out of real estate transactions, agent and broker relationships and landlord/tenant matters.

Find us at www.sacattorneys.com

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