Real Estate Fraud

Real estate fraud is a type of California criminal fraud. Some examples are:

• Lying on a mortgage application if you are buying a home (“mortgage fraud”);
• Engaging in a transaction intending to defraud someone who is in foreclosure, if you are a real estate investor (“foreclosure fraud”);
• Rental property fraud (through the crime of “rent skimming”);
• Knowingly submitting loan documents that are falsified.

Real estate fraud in California can often be prosecuted under Penal Code 487, California’s grand theft law. However, certain specific forms of real estate fraud such as foreclosure fraud, rent, and forging are prosecuted under specific California real estate fraud statutes, including Civil Code 2945.4 (foreclosure fraud), Civil Code 890 (rent skimming),and Penal Code 115 (recording forged deeds).

When real estate fraud is prosecuted under California Penal Code Section 487 as a ‘wobbler’. That means that it may be prosecuted either as a misdemeanor or a felony, depending on the facts of the case and the defendant’s criminal history, if any. For misdemeanor real estate fraud, the maximum sentence is one year in county jail and a fine of up to one $1,000. However, if it is prosecuted as a felony, the maximum term increases to 16 months, or two or three 3 years incarceration.

Moreover, if you are convicted of a felony under this or other California real estate fraud statutes, you may face an additional sentence of one to five years in prison if you defrauded someone out of more than $65,000.