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Well, there is a saying that goes: There are two kinds of people on earth: one who fools and one who allows himself to be fooled.

Alas, there are wily Realtors and finance officers who are real experts in perpetrating frauds. They know how to hide their guile under the cover of beautiful words, attractive terms and benefits. Too late that after you had signed the credit papers, you would find out you had been trapped in a pitch of deceit.

You don't have to be very smart to sense that another person is trying to defraud you. Though you may not be knowledgeable about contracts and realty transactions, there is a way to protect yourself from being a victim. For one, you should never sign a document without consulting a trusted lawyer or expert. This should stand as the cardinal rule when entering into any contract.

In their desire to meet or surpass their sales quota, real estate agents help their unqualified clients to qualify for housing loans by manufacturing fake documents such as employment history and credit record.

Fraudsters run the risk of facing rigid punishments. In the above scenario, the buyer, seller and agent can be held equally guilty for collaborating in the execution of real estate fraud. Though the seller may seek remedy by invoking good faith, still his allegation is subject to burden of proof.

Sellers must therefore be cautious enough by making sure the agent and the buyer are not in any way trying to defraud the sale. He can do this by ascertaining the authenticity of documents and other pertinent requirements involved in the said real estate transaction.

According to FBI Director Robert Mueller, it would be more advisable for a company to report its own misconduct to prevent further complications later on once the Department of Justice and the FBI takes a hand in the state of affairs of said erring company.

Mueller said in real state fraud cases, individuals involved have likely been in the business for so long that they cannot afford to lose the trust and confidence of their clients and shareholders. He also said the executives can always give rationalizations and wash their hands from guilt and participation in the fraud, but no matter, their company was involved anyway and to try to steer clear from the responsibility is a big risk on their business. Therefore, Mueller said, a company should better remedy or correct its own bad behavior to be able to start anew and regain the faith of its shareholders and business associates.

Real estate frauds will not be as rampant as they are today if people are more militant in combating these unlawful practices.

Sometimes, in our eagerness to get a nice deal, we tend to forget the simple and basic tenet of transacting business. Then of course, we tend to be over confident and over trusting we neglect our sensibilities. We give away confidential information. We even get careless with our documents. And worse, when we see we are halfway through the deal already, we entrust the rest of it to our agents or sellers. Then we become willing victims.