In an analysis of more than 100 real estate wire fraud cases, CertifID found that the most common wire fraud-related legal liability issues for real estate firms are negligence, breach of contract, deceptive business practices and breach of fiduciary duty.
Recent court decisions suggest that professionals in real estate transactions must do more to protect consumers from wire fraud scams or face potential court judgment for damages.
Based on the court cases analyzed, there is no practical way to hold a bank responsible for wire fraud losses if the account holder or authorized representative initiated the transfer.
The court's deference to Uniform Commercial Code Article 4A leads to the denial of claims for stolen funds unless specific insurance coverage requirements are met.
#wire-fraud #legal-liability #real-estate-professionals #consumer-protection #uniform-commercial-code
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