What is a Benami Transaction?

The Benami Transactions Prohibition Act was promulgated by the Supreme Court of Massachusetts in 1979. It is basically a mortgage related act that prohibits any person from entering into a mortgage or loan contract with the intent to defraud the public. The plain and simple words of the act are “anyone who enters into a home or property for the purpose of making a false or deceptive representation regarding any property or debt is guilty of fraud”. This means that a person who enters into a home or property with the intention of defrauding the United States government or another is guilty of fraud. Check This Out to learn more about this.

Benami Transactions (Prohibition) Act, 1988 - iPleaders

This particular law has been around for some time, and there have been significant amendments made to the original act in different state courts. One of the biggest amendments is a prohibition against “any officer or employee of the United States having access to the real property or any property in the course of his duties”. This includes all of the U.S. Mints and all of the employees of the Federal Reserve. In addition, this includes anyone who works for a bank or any financial institution doing any kind of financial transaction with banks.

With this definition you would think that it would apply to any bank and all of its employees, but that is not the case. There are exceptions to the property within the bank. Fraudulently selling property within a bank is still fraud unless the person knows that he is not really selling the property. In other words, if the person were just working in the office and say to a customer “I am going to have a talk with you about your mortgage because I am having a hard time finding a buyer and I need your help”. This would be fraud within the office but could be fraud on the property as well.

Fraudulent mortgage companies cannot be assigned the name ‘benami’ even if they are still performing the actual loan or mortgage transaction. This term is always applied to any property where there is a misrepresentation or some other type of illegal activity. One example would be buying a property under false pretenses and later flipping it for a profit without reporting any of the costs.

Another example would be buying property under false pretenses and then not taking possession of the property for a number of months while continuing to rent it out. This is a classic example of ongoing property fraud known as benami transactions. Property that is acquired fraudulently will always be considered as assets for the fraudulent person who owns it. Even when the property owner tries to recover, he will likely lose more because of having to prove that the property was never any other than a sham.

If you ever suspect that you have bought a property through a shady transaction, one of the first things to do is to ask the bank officials for documentation that will verify the sale. It is also important to find out if the property actually has any financial transactions with other banks or if any of the documentation that was presented by the seller is actually true. Most banks are required to provide a certificate of title for any property that they sell. For instance, it should contain the full names of the owners of the property, the loan information that is for the mortgage, and the sales price for the property.

Benami transactions can also happen with the properties that are put up for pawning. Many people know that pawn shops do not really make any money from their investments because pawning requires you to buy at a very low price. People who have pawned properties instead try to resell them at higher prices so that they could make some money. However, some people do not know that in some states, a person cannot pawn a property unless it is deeded in the name of his or her child or spouse.

It is very important to protect yourself from any type of property fraud. If you know that you have been the victim of such property fraud, you should contact a foreclosure attorney immediately. You should let the attorney know about all the details of your transactions with the bank including the documents that are associated with the property. This will help you get justice for your property.