1. Fraud Turns on What Led You to Sign or Pay
Seek a review when a record contradicts an assurance you relied on, especially before you release funds, extend a deadline, or sign a settlement. The first question is whether the speaker described an existing fact or promised future performance.
A False Statement and a Broken Promise Require Different Proof
Intentional misrepresentation requires a material false statement that the speaker knew was false or made recklessly, intending you to act on it. For a false promise, California Civil Code § 1710(4) asks whether the speaker intended to perform when making the promise. An earlier instruction diverting the very funds earmarked for the lender could suggest deception. An attempted payoff that the lender later rejected may point to a breach of contract.
The Statement Must Have Affected Your Decision
Identify what you did because of the assurance. Did you remove a title contingency, release a deposit, or agree to a price you would otherwise have rejected? A fraud claim requires reasonable reliance that substantially contributed to your loss. Check when you received the title report. A report listing a lien may undermine an earlier assurance of payment, yet tell you little about a payoff the seller claimed to have made afterward.
2. The Transaction File Connects the Assurance to the Payment
Date each statement and identify its source and recipient. If a broker forwarded the seller’s message, distinguish what the broker repeated from any facts the broker claimed to have verified.
Match Each Record to the Disputed Point
Keep original attachments and each version of the escrow instructions. Compare the following records side by side.
| Record | What to Check |
|---|---|
| Purchase agreement and amendments | Which payment obligations were final, conditional, or later changed? |
| Lender payoff demand and payment confirmation | Did the lender quote an amount due or confirm receipt of the money? |
| Emails, texts, and escrow instructions | Who gave the assurance, and did it reach you before you authorized payment? |
| Escrow ledger and bank records | Who received the funds, and how much came back? |
Purchase agreement and amendments
- What to CheckWhich payment obligations were final, conditional, or later changed?
Lender payoff demand and payment confirmation
- What to CheckDid the lender quote an amount due or confirm receipt of the money?
Emails, texts, and escrow instructions
- What to CheckWho gave the assurance, and did it reach you before you authorized payment?
Escrow ledger and bank records
- What to CheckWho received the funds, and how much came back?
Separate the Money Paid from the Loss Claimed
A deposit still held in escrow presents a different recovery question from one already disbursed. Reconcile the ledger with refunds and identify expenses you incurred because you relied on the statement. If the loss stems from a concealed defect, the seller’s knowledge and duty to disclose become central. The review of post-closing buyer claims addresses that issue.
3. Civil Claims and Agency Reports Serve Different Purposes
A civil claim can seek compensation or rescission to unwind the deal. Prosecutors decide whether to pursue charges. Licensing officials investigate misconduct. Track your civil deadline while either office reviews a report.
The Contract and Filing Rules Shape a Civil Claim
Check the agreement for notice requirements and clauses covering mediation and arbitration. Mediation may be a required settlement step. A binding arbitration clause may give an arbitrator authority to decide the claim. If the claim belongs in Los Angeles Superior Court, Local Rule 2.3 governs courthouse assignment. Use the Filing Court Locator with the relevant facts, which can include where the defendant lived, where the contract was made or due to be performed, or where the disputed property lies.
Criminal and Licensing Complaints Follow Separate Routes
To report suspected real estate crime in Los Angeles County, use the District Attorney’s Real Estate Fraud Complaint Form and its mailing instructions. For suspected misconduct by a broker or salesperson, the California Department of Real Estate accepts complaints online or on Form RE 519. The department may discipline a licensee. A claim for damages follows a separate civil process. Federal prosecutors may also consider wire fraud under 18 U.S.C. § 1343 if someone used interstate or foreign wire communications to carry out a scheme to obtain money or property by fraud.
4. Discovery Dates and Settlement Terms Can Affect Recovery
Keep the first warning and a dated record of your follow-up. Under California Code of Civil Procedure § 338(d), a fraud claim generally has a three-year filing period. The clock can start when reasonable diligence would have revealed the facts constituting fraud, even if you obtained written confirmation later.
Review a Proposed Refund before Signing a Release
A release offered with a partial refund may cover other losses or parties. Read which claims it would settle. If you want to unwind the deal, Civil Code § 1691 generally calls for prompt notice and the return, or an offer to return, of benefits you received. Review those steps before agreeing to keep part of the payment.
5. A Case Review Can Address Oral Evidence and Fees
Before choosing how to proceed, consider what it would take to prove a disputed conversation and what that work might cost.
Can an Oral Statement Support a Fraud Claim?
An oral assurance can support a claim. Note the speaker’s words, who else heard them, and whether a follow-up message confirms the conversation. If the signed agreement says something different, the attorney will examine how that conflict affects the reasonableness of relying on the assurance.
What Should I Ask about Fees before Hiring a Lawyer?
Ask what the initial review covers, who pays filing or expert costs, and what further work would require your approval. Ask for a written estimate for the next stage so you can weigh it against the amount still in dispute.
05 Nov, 2026
