Truth Behind 72 Sold Lawsuit: Is There Really A Case Going On?

If you are planning to buy a property, you need to first hear about the 72 Sold lawsuit!

Why am I suddenly talking about this? Well, for starters, the news about the 72 Sold lawsuit has sent ripples through the real estate industry. To be exact, as far as we could see on the internet, it highlighted some troubling practices.

At the heart of the controversy is 72sold.com, a company that promises to sell homes within just seventy-two hours. However, the lawsuit alleges that their marketing strategies are not as transparent as they claim.

Homeowners have accused the company of misleading advertising, hidden fees, and failing to deliver on their promises.

Now, this is something that’s all over the internet! But how much of this is really true?

Hi. In today’s blog, I will be talking about the following things:

• About 72 Sold and what they do.
• The supposed allegations in the infamous 72Sold lawsuit.
• Is there really a 72Sold lawsuit going on?
• Is 72 Sold a legitimate company?
• Who can protect you in cases of real estate scams?

Therefore, if these are some of the things that you have been searching for, keep on reading this article till the end…

72 Sold: The Fast-Track Home Buying Solution Or A Scam?

You might be scratching your head wondering, “What exactly is this 72 Sold.com we keep hearing about?”

72Sold.com is a real estate company based in Scottsdale, Arizona, founded by Greg Hague in 2018.

It’s a real estate website that promises a whirlwind experience – selling your home in a lightning-fast time frame, often advertised as 72 hours or less. This can be music to your ears if you’re facing a tight deadline to move or simply crave a quick turnaround. 

The core idea behind 72Sold.com is to create urgency among buyers by limiting their time to view and make offers on a property. This strategy is designed to generate competition and excitement, which can lead to quicker sales and potentially higher prices.

The company claims that homes sold through their program achieve a median price 7.8% higher than those listed on the Multiple Listing Service (MLS).

Here’s how it works:

• Speed Demon Sales: 72 Sold.com boasts a rapid-fire approach, aiming to get your house off your hands in the blink of an eye. This can be attractive if you’re eager to close the chapter on your current home and embark on a new adventure.
• Auctioneer Ambiance: Instead of traditional showings, they utilize an “auction” format where multiple pre-approved buyers compete for your property. This can sound enticing because it injects a sense of urgency and potentially drives up the final selling price, leaving you with a bigger check in your hand.

However, since last year, people have been saying that this real estate one-stop homebuyer’s solution does not really work in the way it claims.

What Are The Major Allegations In The Popular 72 Sold Lawsuit?

The recent 72 Sold lawsuit against a group of agents using the 72 Sold.com platform throws a wrench into this fast-paced scenario.

The allegations that one can find all over the internet suggest that some agents may have resorted to deceptive marketing tactics to achieve those lightning-quick sales.

Here are some of the alleged wrongdoings that 72 Sold have been accused of:

• Hidden Fee.
• Offer Quality.
• Limited Control.

You might not have time for traditional open houses where potential buyers can leisurely explore your property or engage in individual buyer negotiations, potentially limiting your options to secure the best possible offer.

Hidden Fee

While the website advertises a “no commission” selling approach, there could be hidden fees lurking beneath the surface. These fees might not be readily apparent upfront and could significantly erode your final profit.

Offer Quality

The quick-fire auction format might not always translate to the best offers for your property. Buyers might be more focused on snagging a quick deal than offering a fair market price. Imagine selling your prized possession for less than it’s worth – not an ideal outcome.

Limited Control

Selling through an auction-style platform means you relinquish some control over the process.

You might not have time for traditional open houses where potential buyers can leisurely explore your property or engage in individual buyer negotiations, potentially limiting your options to secure the best possible offer.

72 Sold Lawsuit: Everything You Need To Know About The Lawsuit

According to what most of us can find on the internet, or what has been made popular, the legal fight against 72 Sold began when homeowners apparently came together and filed complaints against 72Sold.com due to dissatisfaction.

And, guess what? Several blogs on the internet also state that these homeowners were former clients of the real estate company.

Among the various other issues that homeowners had with the marketing strategy of the company, one thing that garnered the most attention was the promise of selling houses quickly.

So, what did these former clients mention in their complaint? Let me tell you! These are some of the things that most blogs that you will find online say about the allegations in the lawsuit:

1. Misleading Advertising:

At first, 72 Sold launches an ad campaign claiming that they can sell houses in no more than eight days. Then again, some of the homeowners have come out to say that this has not necessarily been the case.

It is asserted in the lawsuit that the company’s propaganda is deceptive as a result of the fact that there is no promise that all the homes will be sold within the agreed time.

2. Deceptive Practices:

The next thing is that there are some doubts about the openness of the commission structure and the fees of 72 Sold.

People selling their homes have reported that they have come across costs and fees that are not expected and that they were not clearly disclosed at the beginning.

In the lawsuit, it is claimed that such deceptive conduct is asserted and the financial losses due to such practices for both buyers and sellers are expected.

3. Lack of Disclosure:

Moreover, in the lawsuit, another point is that 72 Sold has allegedly not disclosed sufficient information.

The people who have sold their homes affirm that the company has been hiding the essential part of the information, which includes extra fees and charges.

What Is The TRUTH About 72 Sold Lawsuit? Is There Really A Lawsuit Going On?

Now, the truth is, irrespective of how many people on the internet are telling you about the existence of a 72 Sold lawsuit, there isn’t any going on. Yes, you read that right!

As far as I think, this entire “lawsuit” was a propaganda that aimed to tarnish the reputation of Greg’s 72 SOLD company.

Generally, whenever there is an ongoing suit, most of us can easily find out about the case details on certain legal forums like Top Class Actions, Lawsuit Information, or even Justia.

However, there was no such information available online that could point to whether there REALLY was a case against the company.

Is 72 Sold A Lawsuit Legit Company?

The shortest answer to this question is yes. It is a legitimate company. According to Better Business Bureau, “72 Sold offers a home selling program designed to sell homes in 72 hours while providing a better experience for home sellers, giving them greater ease, convenience, and a higher priced sale.”

But how much of it really works? 

Explaining the claims that Greg has made about selling a property in 72 hours, TINA Organization stated that the official website of the company “says it has seven independent studies showing that home sellers who used the 72SOLD program had a median sale price averaging 8.4%-12% higher than other homes sold in their local MLS, or multiple listing service, a database of homes for sale in a particular geographic region, as well as 2,000+ 5-star Google reviews.”

They mention that while it might be true that 72 Sold might have sold “more than another home in the same local MLS,” it does not really mean that they have been able to sell the property at a higher price.

Therefore, while the claims made by the real estate fast selling company might look appealing, it is important for clients to actually understand what they are getting into before they finally decide.

Laws Protecting Clients Against Real Estate Scams

In the United States, laws that protect consumers against real estate scams are primarily enforced through a combination of federal and state regulations, as well as consumer protection agencies.

The main focus areas are the fraud time limits, consumer protection laws, and special regulations, for example, targeting title fraud.

Federal Laws And Agencies:

• Federal Trade Commission (FTC): The FTC is the principal federal agency that deals with investigations and prosecutions of fraudulent business practices, among them are real estate scams.
• Real Estate Settlement Procedures Act (RESPA): RESPA is a regulation that sets forth the procedure of mortgage lending and the provision of settlement services. It is hoped that the consumers will be protected from kickbacks and other deceptive practices that may be committed by the parties concerned
• Truth in Lending Act (TILA): TILA specifies that lenders have to disclose the conditions and the cost of loans to assist consumers in making decisions and to be safe from predatory Lenders.
• Wire Fraud Statutes: Particularly, the prohibition of wire fraud is the statute that is most often applied to prosecute cases of electronic communication fraud, which usually includes a part of online real estate fraud.

State Laws And Regulations:

• Real Estate Fraud Statutes: There is a set of conditions defining real estate fraud and afterward outlining the punishment for this act that the states create on their own. These laws further specify the period during which it is allowed to file a case concerning fraud, along with the limitation of offenses.
• Consumer Protection Laws: States themselves have their consumer protection laws reflecting the federal regulations and also providing additional ways of redressing against scams.
• State Licensing Boards: Local real estate agents and brokers are usually licensed by state boards. These boards have the power to discipline them if they commit fraud.
• Title Insurance: Title insurance is a way for buyers to be made whole in case they suffer any loss that comes from the problems with the title of the property, including if it is a fraud case.

Who Can Help You in THESE Situations?

Knowing who to reach out to in case of situations like these is crucial. What are the steps that you should take? Whom to call? What about the money involved? If you have been thinking about it all, I have the answer for you!

In cases like these, real estate litigation attorneys are your go-to solution.

Real estate lawyers are essential in their clients’ journeys through the twists and turns of property deals.

They champion the interests of buyers, sellers, developers, and investors. How? Well, by ensuring the contracts are legally correct and the transactions comply with local rules.

Lawyers’ participation is most evident in due diligence, where they contribute to the following things:

• Assessment of risks.
• Revision of property titles.

Additionally, they search for information about the:

• Zoning laws.
• Environmental regulations.
• Possibilities of financing.

Besides that, a greater focus on Environment, Social, and Governance (ESG) aspects in real estate implies that lawyers are the ones who guarantee the property to be sustainable and the absence of environmental problems.

In addition, this case is very significant for those who would like to be sure that they are in line with all requirements, including those that might come in the future.

Moreover, in the case of large commercial real estate, attorneys play a utilitarian role, leading the discussions between different parties to ensure that all legal obligations are fulfilled and helping clients complete transactions efficiently.

Who are Real Estate Litigation Attorneys?

A real estate litigation attorney is a lawyer who helps people resolve disputes related to property, such as homes, land, or buildings.

These disputes can involve disagreements over property boundaries, contracts, transactions, and sometimes issues like property damage or zoning laws.

Now, you might ask: what is the job of these attorneys? Here’s your answer:

1. Handles Disputes

Firstly, the attorney steps in when there’s a conflict between buyers, sellers, landlords, tenants, neighbors, or developers.

This could be about things like ownership rights, property lines, or disagreements about how a property can be used.

2. Represents in Court

Secondly, if you or your lawyer are unable to solve the dispute through negotiations, the attorney represents the client in court.

Furthermore, in order to secure financial compensation or property rights, they do the following:

• Present evidence.
• Make arguments.
• Aim to achieve a favorable result for their client.

3. Negotiates Settlements

Thirdly, in many cases, these attorneys try to resolve issues outside of court through settlement negotiations.

This saves time and money for their clients. They work to find an agreement that satisfies both parties without going to trial.

4. Contract Issues

Real estate deals often involve complex contracts. A litigation attorney steps in if there’s a breach of contract, meaning one party didn’t follow the terms. They ensure the contract is enforced or help negotiate new terms if needed.

5. Guides Clients Through Legal Processes

Real estate laws can be complicated. The attorney helps clients understand their rights and options. Additionally, they guide them through the legal process to protect their property interests.

Know What To Do: Is Fast Track The Best Option

According to Andrew The Homebuyer, there are no scams or illegal activity when it comes to the way 72 Sold functions. However, “they can be misleading and highly dependent on the market.”

One of the reasons behind this is that the platform might have been able to sell property faster when the market was volatile during the pandemic (and post-pandemic) years of 2021 and 2022. However, this does not hold true when you compare it to the “reality in the current market.”

Additionally, there may have been “artificially inflated Google reviews” which ended up giving the sellers a hyped up image of the company.

And as the platform uses an aggressive approach when it comes to their home-selling strategies, it might leave the owners pressurized. In turn they end up “taking an offer without much consideration.”

If you suspect that you have been involved in a real estate scam, one of the most effective steps you can take is to inform the appropriate authorities. This can include your local consumer protection agency or the real estate licensing board, about the incident.

Also, it would be wise for you to speak with an attorney to clearly know what your legal rights are and what you can do. Do not forget that knowledge is power.

Take a look at these further tips that might be helpful:

• Write down everything.
• Get a lawyer.
• Beware of phishing attempts.
• Ask yourself if you feel comfortable with the situation.

Additionally, it will also ensure that you do not fall prey to any fraud and stay confident during the whole process.

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