How to handle real estate fraud and misrepresentation cases

On Behalf of Marcus, Gould & Sussman, LLP | Jan 2, 2026 | Real Estate | Buying or selling property can be exciting. But discovering fraud or misrepresentation can make it stressful and confusing. Real estate fraud in Westchester and across New York comes in many forms. It can include false statements about a property or misleading financial documents. Knowing the warning signs and acting early can help protect your investment and legal rights. Spotting possible fraud and misrepresentation Fraud and misrepresentation often appear in small details. These may seem harmless at first. Inconsistencies in property disclosures, conflicting information in contracts, or unusual pressure to close quickly can all signal problems. These warning signs are not rare. According to the FBI, in 2024, they received 9,359 complaints of real estate fraud. Recognizing red flags early can help you take measured steps before the problem grows. Documenting and preserving evidence Collecting proof can strengthen your position if a dispute arises. Keep emails, inspection reports, financial statements, and photos of the property. Record conversations and maintain a clear timeline of events. This documentation can provide clarity if a claim is being evaluated. Seeking professional guidance Working with experienced professionals who know New York real estate law can be very helpful. A lawyer can explain your rights and options without forcing a specific action. Consulting an attorney early may prevent complications and preserve remedies that could otherwise be lost. Practical steps you may take Taking thoughtful actions after suspecting fraud can protect both your property and finances. Some approaches often considered include: Reviewing contracts and disclosure documents carefully to spot inconsistencies Consulting with real estate professionals for additional verification Gathering all communications and records related to the transaction Considering alternative dispute resolution like mediation before litigation Notifying authorities if there is evidence of deliberate deception These steps help create a clear record. They also provide context that may be important if legal action becomes necessary. Protecting your future transactions Fraud and misrepresentation can be unsettling. But acting carefully can reduce long-term problems. Stay alert, document concerns, and seek professional guidance. Doing so can lower risk and give you confidence in your real estate dealings in Westchester and beyond. Difficult to Prove Fraud In New York, as most states, prove of fraud is extremely difficult, particularly when there are written contracts which usually provide that the parties have no rights beyond what is in the contract. Fraud must be proven by a high standard of proof – “clear and convincing evident.” It usually involves assertions of purposeful affirmative efforts by a seller to hide physical defects which could not have been discovered by the purchaser on a diligent inspection or search.