Constructive Fraud | Propertylogy

Constructive Fraud

By on August 29, 2019

Constructive fraud refers to the the breach of duty that leads to a tendency for deception, even with the absence of intention to deceive.

While these illegal action or inaction are not common, when they are mentioned, they usually refer to real estate agents and brokers who held back from disclosing material information when it is their duty to make it be known.

An example is the failure to inform a home buyer of the serious foundational problems that exist on a property when he has full knowledge of it.

Such problems can be missed by a buyer from a basic walkthrough inspection.

If such a deal proceeds, the buyer would be victimized and either has to spend a lot of money for repairs or even suffer injuries.

This is without mentioning the possibility of condemning the house.

Even if the buyer had not asked questions regarding the foundations of a house, an agent can still be charged as it is his duty to speak up.


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