Attorney Andre Clark Explains Why Fraud Is A Common Issue In Real Estate Litigation
Fraud recurs in real estate litigation, Los Angeles attorney Andre Clark explains, because brokers owe fiduciary and statutory duties—so failing to make required disclosures can be 'constructive fraud' even without intent to deceive. It matters strategically: since courts are reluctant to reverse title, proving fraud in the contract's formation is often the only way to undo a bad transaction.
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Answered by Andre Clark · Los Angeles / San Bernardino County, CA
Highlights
Frequently Asked Questions
Why is fraud common in real estate litigation?
Because brokers owe fiduciary and statutory duties, and failing to make required disclosures can be 'constructive fraud' even without intent to deceive.
Can a mistake amount to fraud?
Yes—even negligent misrepresentation can rise to fraud, so an honest error in disclosure can still expose a broker.
How does fraud affect a contract?
Fraud often creeps into the formation of the contract, and since courts are reluctant to reverse title, proving it is often the only way to undo a bad transaction.
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