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Benefit Of The Bargain
The benefit-of-the-bargain rule states that someone who has been defrauded can recover damages from losses.
These losses would be the difference between the misrepresented value of the property and the actual value of the property.
This can occur when a gullible buyer had been duped into a deal believing that he was buying a house worth $250,000, but with a fair value of $100,000 instead.
Because real estate transactions involve various third parties, sometimes the act of one service provider can be enough to cheat unsuspecting victims.
For example, an appraiser can knowingly sign off a property value that is way above what it is actually worth.
Victims then get into a deal thinking that the value is verified by a credible appraiser.