If you believe you have been a victim of real estate fraud, or if another party is threatening you with a claim of real estate fraud, your primary questions are most likely: 1) is there merit to the claim of real estate fraud?; and 2) if so, how will this end? This article takes a brief overview of the second question, with the answer being that a successful plaintiff in a real estate fraud lawsuit can pursue either money damages for their losses or rescission of the contract.
Pursuing Money Damages in a CA Real Estate Fraud Case
The central question for the plaintiff in a real estate fraud case is whether the plaintiff still wants the benefit of the transaction. Usually, this looks at the purchaser of the real estate, as it is more often going to be the case that a purchaser is later claiming there was some kind of fraud related to the true worth of the property.
If a purchaser can successfully show that there was fraud which induced the purchaser to go through with buying the property, but that purchaser still wants to remain on the property, the purchaser can pursue money damages equivalent to the difference between what they thought were receiving based on the fraudulent statements and the actual value of the property. For example, if a plaintiff believed the property was worth $900,000 based on fraudulent statements, but the true nature of the property is $600,000, the plaintiff could pursue money damages of $300,000 along with related costs.
Pursuing Rescission in a CA Real Estate Fraud Case
If the purchaser instead wants to completely unwind the real estate purchase transaction, the purchaser can do so through a legal remedy called rescission. This essentially means the contract will treated as though it was never valid, and the purpose will be to put the parties back in the same positions as which they started.
Thus, the purchaser will need to vacate the property, and the seller will need to refund the purchase price to the purchaser. The purchaser can also often pursue other financial damages related to going through with the contract, such as the cost of real estate agents, escrow services, and moving expenses.
Work With an Experienced Los Angeles Real Estate Litigation Attorney
Attorney Laine T. Wagenseller of Wagenseller Law Firm has published numerous articles on real estate law and works with individuals and businesses across Southern California in resolving real estate matters, including complex real estate fraud lawsuits. Contact Wagenseller Law Firm today to schedule a consultation in order to evaluate your situation and begin working towards a positive resolution.