Real Estate Fraud

Real estate fraud involves intentional misrepresentation, concealment, or deceit in a real estate transaction. Common forms include failure to disclose known property defects, misrepresentation of property boundaries or square footage, forging documents, and fraudulent transfer of title. In California, real estate transactions carry legal disclosure obligations that, when violated, can give rise to civil liability.

Depending on the circumstances, liability may extend to the seller, the buyer's or seller's real estate agent, a lender, an appraiser, a title company, or other parties who participated in or knowingly facilitated the fraudulent transaction.

California law requires sellers to disclose known material defects and other relevant information that could affect a buyer's decision. This includes structural problems, water damage, neighborhood nuisances, and legal issues affecting the property. Agents also have independent disclosure obligations.

Recoverable damages may include the difference between what you paid for the property and its actual value, the cost of repairs for undisclosed defects, loss of use and enjoyment, and potentially punitive damages if fraud was intentional and egregious. Attorney's fees may also be recoverable in certain fraud cases.

If you discovered undisclosed defects or were misled about material aspects of a property after closing, you may have a valid claim. Common red flags include discovering major structural, plumbing, or electrical problems shortly after purchase, or learning that important disclosures were omitted or falsified.

Fraud claims in California generally have a three-year statute of limitations from the time you discovered or reasonably should have discovered the fraud. For contract-based claims, the period may be four years. An attorney can help determine the appropriate deadline for your specific situation.

A licensed real estate agent has independent duties under California law, including the obligation to conduct a visual inspection and disclose any known material defects. A failure to meet these obligations can expose the agent and their broker to professional liability, in addition to any claims against the seller.

Yes. Many real estate fraud claims are discovered after closing, precisely because the harm only becomes apparent once the buyer moves in or attempts to sell. The statute of limitations typically begins to run from the date of discovery, not the date of closing.