What is the classic scheme for “greenfield” real estate fraud – Real Estate

What is the classic method of fraud in real estate transactions, say a victim and a lawyer. This method involves the resale of apartments at a significantly higher price after the conclusion of a contract of sale with an express clause that the price will not change during construction. Notwithstanding this clause, once the down payment is paid, the price increases.

The case, which is being investigated, has already been handed over to the court in a few days, they informed in the program “Horizon do Oed” of BNR.

One of the affected buyers, Kiril Filev, tells about the fraudulent scheme in question:

“There was inflation at that time, at the beginning of the events in Ukraine. We agreed to a reasonable markup, but this a salesman insisted on a raise that amounted to nearly 40%. Despite the talks, he did not give up on the request.

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Initially, this seller sent us a message that if we did not agree to the new price, he would terminate the contract. Construction had begun in February of this year, and during a site visit I met a man looking at apartments. After talking with him, I found out that our two apartments are for sale. Therefore, I contacted the broker to check the prices and the apartments that were available. Then the realtor confirmed that our apartments were for sale, and the next day she confirmed to me that they had already been sold.

We immediately alerted the prosecutor’s office and the police. To the police, the broker confirmed that it was on February 10 of this year a preliminary contract of sale was concluded and on the same day the buyer transferred the money by bank transfer.”

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The police call the builder, who does not say that the apartments have been sold, but says that he had such intentions and was thinking of giving notice of the termination of the contract. After two weeks, the victims receive an e-mail from the builder, in which he wants to terminate the contract, citing as the reason that he has not been provided with the VAT money.

“We have repeatedly asked for a VAT invoice, but he keeps delaying. We provided him with the amount of BGN 120,000, but he used this fictitious excuse that he did not receive 6,000 euros of VAT,” says Filev.

In this case, the victim faces an increase in the price of the apartment, after a contract has already been concluded with a clause that it will not change.

The conclusion of the examined case of fraud when buying a home “on the green” is that in the field of real estate there is a risk of malpractice and fraud affecting buyers.

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