Retired individuals and others seeking to make savvy investments often turn to unimproved land. Suburban sprawl, combined with the gradual increase of property values, can make real property a valuable investment if people can hold it for decades.
People acquiring unimproved land generally expect that sellers provide accurate information regarding the nature and location of the property. Some investors may purchase parcels sight unseen and hold them for years before they learn that they have invested in worthless property.
In cases where current owners can prove intentional and fraudulent misrepresentation regarding the usefulness or value of property, they may have grounds to pursue a lawsuit against the seller and any investment professionals who helped facilitate the transaction.
Land-related investment fraud is common
The history of property misrepresentations as a form of investment fraud is long and storied. For example, there are cases of sellers duping investors with Florida swampland going back roughly a century.
Other times, properties may be subject to easements or may have environmental contamination that makes them all but unusable. The presence of groundwater or endangered species can also limit the use and value of unimproved land. Even nearby businesses, ranging from chemical facilities to large farming operations, can limit the use and resale value of real estate holdings.
Investors manipulated and tricked by sellers who misrepresented the condition or value of real estate can potentially take legal action after discovering the fraud that occurred. Not reviewing marketing materials, seller disclosures and current information about the property can help frustrated investors pursue justice. With legal support, recouping lost investment capital is sometimes possible.
