Proving fraudulent misrepresentation in real estate litigation

On Behalf of | Sep 6, 2023 | Real Estate Disputes

When you enter a real estate transaction you expect other parties to act in good faith. You anticipate making a decision on their honesty and your due diligence, thereby ensuring that you get a fair deal that’s hopefully favorable to your future prospects.

Yet, all too often individuals act inappropriately and illegally during real estate transactions. To protect yourself, you need to be prepared to take legal action when warranted. One time to do so is when you’ve been harmed by fraudulent misrepresentation.

What is fraudulent misrepresentation?

Fraudulent misrepresentation occurs when one party to a contract intentionally or recklessly misrepresents a fact. For this act to be actionable for a tort other than mistake, you have to show that the party who made the misrepresentation did so with the intent of coercing you into the contract in question.

It’s oftentimes easier to break fraudulent misrepresentation down into its core components. These include:

  • A representation was made.
  • That representation was false.
  • The party making the representation knew it to be false or acted recklessly with disregard for the truthfulness of the representation.
  • The representation was made in an attempt to coax you into an agreement.
  • You relied on that misrepresentation when deciding to enter into a contractual agreement.
  • You suffered damages as a result of your reliance on the misrepresentation.

How do you prove fraudulent misrepresentation?

In some instances, this can be challenging to do given that you must prove the defendant’s intent. However, you might be able to find strong evidence to support your case from the defendant’s communications, both internal and external, as well as documentation pertaining to the representation in question. So, be prepared to subpoena those records that are most important to your claim.

A fraudulent misrepresentation case in the real estate world can carry significant implications. With that in mind, diligently work to prepare yourself for real estate litigation so that you can protect your interests as fully as possible.