When Can You Sue for Real Estate Fraud? Common Scams and Legal Remedies

Real estate law in Tennessee provides multiple avenues for legal action when fraud occurs. Whether the issue involves misrepresentation, forged documents, or false promises, you don’t have to accept the outcome without fighting back. I help clients understand their rights, uncover the truth, and take legal steps to recover their losses.

At The Law Office of Sheridan Randolph, I’ve seen the damage real estate fraud can cause—financially, emotionally, and legally. Property buyers, sellers, and investors often put their trust in people they believe are acting in good faith. 

But when deception enters the picture, that trust quickly turns into confusion and loss. Under Tennessee law, if you’ve been deceived during a property transaction, you may have the right to sue for real estate fraud.

Real Estate Fraud in Tennessee

In my practice, I explain that real estate fraud happens when someone intentionally deceives another party in a property transaction. That deception must involve a material fact—something significant enough to influence the buyer’s or seller’s decision. 

Under Tennessee real estate law, the courts will look at whether the person who committed the fraud knew the statement was false and whether they intended to mislead the other party.

Some of the most common fraud cases I see involve sellers who hide problems with the property. For example, if a seller knows there’s mold or structural damage and doesn’t disclose it, that could amount to fraud. 

I’ve also handled cases where documents were altered, signatures forged, or ownership misrepresented. These types of fraud often come to light after the deal is done, leaving buyers with unexpected costs and legal headaches.

In each case, I help my clients gather evidence and decide whether to pursue a claim in civil court. Under Tennessee’s real estate law, fraud claims must be filed within a certain timeframe—usually three years from the date the fraud is discovered. Time matters, so it’s important to act quickly once you suspect wrongdoing.

Buyer Beware—But Not Without Protection

Tennessee is a “buyer beware” state, also known as a “caveat emptor” jurisdiction. This means that the buyer is expected to do their own due diligence before purchasing property.

However, this doesn’t give sellers the freedom to lie or hide critical information. If a seller actively conceals a problem or lies in the disclosure documents, the law allows the buyer to sue for damages.

In many real estate law cases I’ve handled, the distinction between concealment and mere silence becomes crucial. If a seller says nothing about a defect that a reasonable inspection would have revealed, they might not be liable. 

But if they go out of their way to hide the issue—like painting over water damage or installing temporary fixes to cover foundation problems—that can amount to intentional fraud.

Disclosures are a major part of every real estate transaction. Tennessee requires sellers to provide a Residential Property Condition Disclosure form in most sales. 

If that form is inaccurate or incomplete, and the buyer relies on it, the courts can hold the seller accountable. I often compare the situation to a contract built on false information—the entire deal is compromised.

Scams That Commonly Appear in Real Estate Transactions

Throughout my practice at The Law Office of Sheridan Randolph, I’ve seen a wide range of scams affect buyers and sellers alike. Some involve impersonation—where a person pretends to be a property owner and attempts to sell land or a home they don’t own. 

Others involve inflated appraisals, forged deeds, or fraudulent rental listings. These schemes are especially harmful because they often involve people who are already financially vulnerable or inexperienced in real estate matters.

Another common scam involves dual representation. In some transactions, an agent may claim to represent both the buyer and the seller but fail to disclose their true interests. 

That kind of conflict can lead to biased advice, skewed negotiations, and ultimately an unfair deal. Tennessee’s real estate law addresses these issues with strict rules around agency relationships, and I help clients challenge deals that were tainted by deception.

Wire fraud is a growing problem in real estate. Criminals hack email accounts and send fake wiring instructions just before a deal closes. Buyers unknowingly send their down payments to scammers instead of legitimate escrow accounts. 

I work closely with clients and forensic experts in these situations to trace the funds and initiate legal action as quickly as possible.

Legal Remedies Available Under Tennessee Law

When clients come to me after falling victim to real estate fraud, the first question is often whether they can get their money back. Tennessee real estate law offers several remedies, depending on the nature of the fraud and the stage of the transaction. 

If the sale has not yet closed, it may be possible to cancel the deal and walk away. If the sale has already gone through, the buyer can sue for damages or ask the court to rescind the contract.

Damages in fraud cases can include the difference between the property’s real value and what was paid, costs of repair, lost profits, and sometimes punitive damages. 

Punitive damages are awarded in cases where the fraud was especially deliberate or malicious. I help clients gather the proof they need to show intent, financial harm, and emotional distress.

In cases involving title fraud or forged documents, I work with title insurance providers and courts to correct the property records. Sometimes, we also pursue criminal charges against the fraudster. While my practice is focused on civil law, I coordinate with law enforcement when needed to protect my clients' rights.

In certain situations, I advise clients to file complaints with the Tennessee Real Estate Commission or the Department of Commerce and Insurance. 

These agencies regulate agents, brokers, and licensed professionals, and they can impose disciplinary actions. When a licensed party has committed fraud, those agencies can help enforce consequences beyond the courtroom.

Protecting Yourself Moving Forward

Although Tennessee’s real estate law allows you to sue for fraud, prevention is always better than litigation. I advise clients to work with professionals they trust, double-check all documents, and keep records of every communication. Even in a “buyer beware” state, you don’t have to accept being misled or manipulated.

If you’re entering into a real estate deal and something doesn’t feel right, trust your instincts. I often meet with clients before contracts are signed to review documents and flag possible red flags. 

Once the deal is done, it becomes harder—but not impossible—to fix a bad transaction. If you’ve already closed on a property and discover fraud afterward, the sooner you speak with a real estate law attorney, the better your chances of recovery.

At The Law Office of Sheridan Randolph, I’ve helped clients recover significant damages in cases involving false disclosures, forged deeds, and hidden defects. Every situation is different, and real estate law offers multiple legal paths. My job is to assess your case, explain your rights, and pursue the strategy that best serves your interest.

Why Real Estate Law Matters in Fraud Cases

Real estate law in Tennessee is designed to create fairness in what is often the largest transaction a person will make. When that fairness is lost due to fraud, the law provides tools to restore balance. But those tools only work if you know what to look for and take action.

I’ve seen how overwhelming fraud can feel, especially when the property is tied to your home, family, or livelihood. That’s why I focus on clear communication, steady guidance, and a deep understanding of Tennessee real estate law. 

Whether you’re suing for fraud or defending yourself against false claims, the law is there to support truth and accountability.

Reach Out

At The Law Office of Sheridan Randolph, I’m committed to helping you stand up for your rights under real estate law, recover what you’ve lost, and protect your future in property dealings. I’m proud to serve Cleveland, Tennessee, and the surrounding areas. Call today.