According to Lagenceblue, 67% of tenants falsify their rental file to find accommodation, a high statistic that testifies to the abundance of document fraud in the real estate sector. So, what are the risks and consequences of real estate fraud today? How does the state fight against this scourge? We answer you in this article!
It is possible to talk about real estate fraud when deceptive means are used to take advantage of a transaction.
With inflation, the most frequent type of real estate fraud is rental file fraud. Its interest is simple, candidates falsify their documents (pay slips, tax notices, etc.) to obtain a ideal file with real estate agencies. They can then get an apartment much more easily and quickly.
To find out more, do not hesitate to read our article on the subject 👇
Real estate fraud: definition and challenges
If sanctions are put in place, they are still too little of a deterrent today. Let's take stock together.
As rental housing is becoming more and more rare in big cities, candidates are tempted to falsify their records to obtain a rental contract.
Indeed, it has become almost impossible to find housing without a stable job and sufficient income. As a result, candidates no longer hesitate to change their employment contract, their pay slips or their tax notice to improve their chances of finding an apartment.
However, according to the article 441-1 of the Criminal Code, the penalties for forgery and use of forgeries are increased to 3 years of imprisonment and to 45,000 euros fine.
If the candidate is accused Of swindling, this sentence can go as far as 5 years of imprisonment and 375,000 euros fine.
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It is important to note that falsifying a pay slip or an employment contract can also lead to tensions with your employer. Amending your company's official documents could be frowned upon and jeopardize your professional relationship.
In this real estate crisis, tenants fraud in order to obtain an apartment more easily, but it is also the owners who falsify documents to sell their property at a higher price.
Today, sales are managed by the energy performance diagnosis (DPE). Its purpose is simple: it allowsestimate the energy consumption of a home in order to calculate its ecological impact. The goods are listed in alphabetical order ranging from the most ecological, the letter A, to the least environmental, the letter G.
The DPE is mandatory during sales and rentals of property and must be carried out by the owner or lessor of the home. It is then integrated into the Technical Diagnostic File (DDT) which brings together all the documents necessary for the sale!
To prevent housing from being unhealthy and energy-consuming, the State Now regulates the rental of certain properties. In the long term, the following accommodations will be prohibited for rent:
In order to improve the value of their home, owners give it a better energy class. Indeed, with a higher energy performance, the property is revalued.
However, this practice is Reprehensible. In the event of a falsified label, the seller or lessor may be required toPerform the work to obtain better energy performance. He may also incur a fine of up to up to 1,500 euros if his diagnosis is not certified.
👀 Good to know!
In the event of an erroneous DPE, the diagnoser is also liable to sanctions:
If the report contains an error, the diagnoser may need damages.
If the diagnosticist exercises without certification, it may incur a fine ranging from 1,500 euros to 3,000 euros if he recurs.
If he does not transmit the DPE to theEnvironment and Energy Management Agency (ADEME), he may be ordered to pay a fine of 1,500 euros.
In real estate, renters are not the only individuals who attempt to defraud. To get their goods back more quickly and without waiting for any notice, landlords are often tempted to give their tenant time off without good reason. We explain to you!
Today in France, alone three reasons are valid To cancel a rental contract, the owner must mention a vacation:
In order to know if the reason mentioned by the owner is fraudulent or not, here are some points to which it is advisable to pay attention:
If the fraudulent leave is confirmed, the owner is then liable to a fine of up to 6000 euros !
Real estate fraud is common, both on the owner's side and on the tenant's side. In order to regulate this activity, real estate agents are subject to certain obligations under the Hoguet law no. 70-9 of 2 February 1970.
According to Article 3 of the Hoguet law, the real estate agent is obliged to present A professional card to prove his ability to exercise.
To obtain this card, he is required to demonstrate:
Note that according toArticle 14 of the Hoguet Act, if the real estate agent does not comply with these obligations, he is liable to 6 months' imprisonment And of 7,500 euros fine.
In addition, if the real estate agent receives money from his clients during the period when he is forbidden to practice, the penalty may Extend to 2 years of imprisonment and 300,000 euros fine.
The real estate agent is required to highlight your fees in case of sale and its commission in case of rental.
In addition, he must announce Clearly the price and area of the property that he proposes.
In the event of a false announcement, the real estate agent is liable to 2 years of imprisonment And of 37,500 euros fine, according to the article L. 121-1 of the Consumer Code.
Are you a real estate agency and rental fraud makes you lose a lot of money? Several tools exist to fight against document fraud.
At Finovox, we have developed a SaaS solution available in API that allows documents to be analyzed by identifying the alterations made. How does it work? It uses several algorithms for coherence analysis, visual analysis, statistics and computer science.
As a real estate agent, all you have to do is drag the documents of your candidates into our solution. They are then analyzed to find out if they are authentic files or if they have been modified to obtain a location. If the documents have been tampered with, we will provide you with an account of the falsified area and how the fraud was committed.
With Finovox, review all your documents, of all types and in all languages! Are you interested in the solution? Ask our experts for a demo!
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