What type of real estate fraud are you dealing with?
Seller failed to disclose known defects or problems
Title fraud, deed theft, or forged documents
Mortgage fraud or predatory lending
Agent misrepresentation or breach of fiduciary duty
What is the estimated financial impact?
Under $10,000
$10,000 - $50,000
$50,000 - $200,000
Over $200,000 or loss of entire property
When did you discover the fraud?
Within the last few months
6 months to 1 year ago
1-2 years ago
Over 2 years ago (statute of limitations concerns)
What evidence do you have?
Strong evidence: documents, emails, witnesses proving fraud
Some evidence: inspection reports, disclosures, contracts
Limited evidence: primarily my word against theirs
Need help investigating and gathering evidence
Who is responsible for the fraud?
Individual seller with unknown assets
Real estate agent (licensed professional)
Developer, builder, or corporate entity
Bank, mortgage company, or title company
What outcome are you seeking?
Compensation for repair costs or losses
Rescission of the transaction (undo the sale)
Punitive damages for intentional fraud
Criminal prosecution and maximum civil recovery
✅
May Be Manageable Without a Lawyer
For smaller disclosure violations with clear evidence, you may be able to pursue small claims court or negotiate directly. Filing a DRE complaint against agents can also be effective. Use our demand letter templates to document your claim.
File DRE Complaint
Disclosure Violation Letter
⚖
Legal Representation Strongly Recommended
Real estate fraud cases involve significant money and complex legal issues. Title fraud, mortgage fraud, and major disclosure violations require experienced legal representation. Many real estate attorneys work on contingency for strong cases.
Find Real Estate Lawyer
Fraud Demand Letter
⚠
Consider Legal Consultation
Your situation has factors that warrant professional evaluation. Real estate fraud claims have specific legal requirements and statutes of limitation. A consultation can help assess your case strength and options.
Get Consultation
Breach of Contract Letter
Real Estate Fraud in California: Know Your Rights
California has strong consumer protection laws for real estate transactions. Sellers must disclose known material defects, agents have fiduciary duties, and fraud can result in civil liability and criminal prosecution.
Act Quickly: Real estate fraud claims have statutes of limitation. You generally have 3 years from discovery for fraud claims, but evidence can disappear and witnesses' memories fade. The sooner you act, the stronger your case.
Types of Real Estate Fraud
| Fraud Type |
Description |
| Disclosure Violations |
Seller fails to disclose known defects, deaths, neighborhood problems |
| Title Fraud/Deed Theft |
Forged deeds, illegal title transfers, ownership disputes |
| Mortgage Fraud |
Falsified loan documents, predatory lending, bait-and-switch terms |
| Agent Misrepresentation |
False statements about property condition, value, or zoning |
| Foreclosure Rescue Scams |
Equity stripping, fake modification companies, deed theft schemes |
| Wire Fraud |
Hackers intercept transactions, fake wiring instructions |
| Boundary/Survey Fraud |
Misrepresenting property boundaries or easements |
California Disclosure Requirements
Under Civil Code 1102-1102.17, sellers must complete a Transfer Disclosure Statement (TDS) revealing:
- Structural defects, roof problems, water intrusion
- Plumbing, electrical, HVAC issues
- Environmental hazards (lead, asbestos, mold)
- Pest infestations or damage
- Deaths on property within 3 years
- Neighborhood nuisances, noise, odors
- Pending litigation or insurance claims
- Unpermitted work or building code violations
- HOA issues, easements, encroachments
- Flooding history or drainage problems
Agent Liability: Real estate agents can also be liable for failing to conduct reasonable visual inspections, failing to disclose known problems, or making false statements. California law holds agents to high standards.
Statutes of Limitation
| Claim Type |
Time Limit |
Code Section |
| Fraud |
3 years from discovery |
CCP 338(d) |
| Breach of written contract |
4 years |
CCP 337 |
| Negligent misrepresentation |
2 years |
CCP 339 |
| Breach of fiduciary duty |
4 years |
CCP 343 |
| Rescission |
4 years |
CCP 337 |
When to Hire a Real Estate Fraud Lawyer
| Situation |
DIY Approach |
Hire Lawyer |
| Minor disclosure violation under $10K |
Demand letter, small claims |
If seller refuses |
| Significant disclosure violation |
Not recommended |
Strongly advised |
| Title fraud/deed theft |
Not possible |
Essential |
| Mortgage fraud |
Not recommended |
Essential |
| Agent misconduct |
DRE complaint |
For damages |
| Seeking rescission |
Not recommended |
Required |
Damages You May Recover
- Compensatory: Cost to repair defects, diminution in value
- Rescission: Undo the transaction, return of purchase price
- Punitive: For intentional fraud (can be significant)
- Attorney's Fees: Under contract or certain statutes
- Emotional Distress: In cases of egregious conduct
Filing a DRE Complaint
The California Department of Real Estate (DRE) can investigate licensed agents and brokers for:
- Fraud, misrepresentation, deceit
- Breach of fiduciary duty
- Failure to disclose agency relationships
- Failure to supervise (for brokers)
- Violations of the Real Estate Law
Consequences can include license suspension, revocation, and fines. This is in addition to your civil remedies.
Preventing Real Estate Fraud
- Always get a thorough home inspection
- Review all disclosure documents carefully
- Get title insurance from a reputable company
- Verify agent licensing through DRE
- Never wire funds without verbal confirmation
- Research the property's permit history
- Consider a home warranty
Helpful Resources
Related Demand Letter Generators