Many people will make a significant decision at some point in their lives: buying or selling a home. It is an emotional, high-stakes process where trust in a real estate agent or company is essential. But what happens when things fail to go as planned?
“This is the question at the center of the 72 Sold lawsuit.
This case has helped expose troubling allegations against a company that promises to sell homes faster than traditional real estate methods. However, they are far from the real deal,” says attorney Scott Silver, who specializes in Ponzi scheme law at Securities Fraud Attorneys.
Over a thousand homeowners are involved in this class-action suit, which has made it a model case on transparency, fairness, and consumer protection in real estate.
This article will provide insights into how the 72 Sold lawsuit helped reveal how buyers and sellers can protect themselves from real estate scams:
Background to the 72 Sold Case
Greg Hague founded 72 Sold in Scottsdale, Arizona. The company markets itself as a fast-track alternative to traditional home selling. It claims to sell homes in as little as 72 hours using an “auction-like” approach that encourages buyer competition.
According to their promotional materials, homes listed through their system sell for about eight percent more than those listed on the Multiple Listing Service (MLS). The unique selling point is in three pieces: speed, competition, and a simplified process. Hence, homeowners racing against time often run to them for a way out.
What You Should Know About the Allegations in the Case
The 72 Sold lawsuit includes over 1,000 homeowners. The plaintiffs accused the firm of deceptive marketing practices and failing to deliver its promises.
Here are the main points in the lawsuit:
Claim One: Misleading Advertising
One of the most significant complaints is that the company fails to sell a home within 72 hours as promised. The suit alleges that this type of marketing creates unrealistic expectations and misleads consumers into choosing a service that doesn’t deliver as promised.
Claim Two: Hidden Fees and Unclear Contracts
72 Sold markets its platform as a low-cost or “no commission” service. However, many homeowners reported discovering unexpected fees after committing to the process.
These costs, allegedly not disclosed upfront, diminished the final proceeds from sales and left clients feeling misled. The lawsuit claims that these undisclosed charges violate consumer protection laws.
Claim Three: Lack of Transparency
According to the claims, 72 Sold and its agents failed to disclose the terms and conditions thoroughly. These mainly concern its pricing structures and service obligations. This lack of clarity made many homeowners feel trapped in contracts or confused about their legal and financial responsibilities.
Claim Four: Questionable Offer Quality
While the auction-style approach may drive up urgency, it doesn’t always produce outstanding offers. Homeowners contend that this prioritizes speed over value. As a result, they may walk away with less than what their property is worth.
Relevant Consumer Protection Laws
Various laws exist to protect consumers from deceptive practices in real estate. Understanding these laws can prevent you from encountering unscrupulous situations. These laws are:
First Law: Consumer Protection Laws
These laws prohibit false advertising and unfair business practices across industries, including real estate. This law allows you to hold a company accountable for making exaggerated claims or hiding fees. You can sue for damages if you feel harmed by this behavior.
Second Law: Real Estate Licensing Laws
The law requires real estate agents to be licensed and follow specific ethical guidelines. State licensing boards monitor agent conduct and can issue warnings, suspend licenses, or revoke them in misconduct cases.
Third Law: Agency Law
Real estate agents owe fiduciary duties to their clients. These duties include full disclosure, loyalty, and obedience. Violations of these duties are considered serious legal breaches.
Fourth Law: Anti-Fraud Statutes
These laws help protect buyers and sellers from more serious financial schemes, such as Ponzi schemes or fraudulent listings. Even if the deception was not criminal, civil penalties may apply.
How You Can Combat Real Estate Fraudulent Acts
If you suspect you have been misled by a real estate company like 72 Sold, you must take action immediately. First, you should keep detailed records of contracts, communications, emails, texts, and marketing materials. This can serve as valuable evidence if you need to take legal action.
Next is to file complaints with your state’s real estate commission or consumer protection office. These agencies have the power to investigate misconduct. Ensure that you always get terms and promises in writing.
If something is unclear, ask questions until you get a satisfactory response. You may engage a legal professional to review your case and decide the way forward.
The Need to Involve Relevant Lawyers
Speaking of engaging an attorney, a real estate litigation or Ponzi scheme attorney can be your strongest ally when disputes arise. These professionals handle disputes involving property, contracts, zoning issues, and financial losses.
They can help in many ways to ensure you do not get cheated. Negotiation, mediation, or court proceedings can help resolve issues between buyers, sellers, developers, or agents.
Furthermore, if a real estate contract has been breached, your attorney can help enforce it or negotiate new terms. If your case goes to trial, your attorney presents your evidence, argues on your behalf, and fights for a fair outcome.
You should understand that real estate law can be complex and varies by state. Your attorney can clarify your rights and obligations and help you avoid costly mistakes. Lastly, real estate and Ponzi scheme lawyers help protect clients from rising threats such as wire fraud or deceptive online platforms.
Closing Remarks
The 72 Sold lawsuit has not only affected a single company, but it has also served as a catalyst for increased transparency and accountability in the real estate industry.
Buyers and sellers can navigate the market with greater confidence and protection by staying informed and seeking the right legal guidance. At your end, ensure you do your research, ask questions, and when in doubt, talk to a real estate litigation attorney.
You can always ignore the need for an attorney until you encounter a hard deal. However, you do not need to wait till you find yourself in troubled waters before involving a legal representative. It should be a proactive approach to protect yourself from fraudulent activities.
Pallavi Singal is the Vice President of Content at ztudium, where she leads innovative content strategies and oversees the development of high-impact editorial initiatives. With a strong background in digital media and a passion for storytelling, Pallavi plays a pivotal role in scaling the content operations for ztudium’s platforms, including Businessabc, Citiesabc, and IntelligentHQ, Wisdomia.ai, MStores, and many others. Her expertise spans content creation, SEO, and digital marketing, driving engagement and growth across multiple channels. Pallavi’s work is characterised by a keen insight into emerging trends in business, technologies like AI, blockchain, metaverse and others, and society, making her a trusted voice in the industry.
